"Burden of Chicken and Beer After Work"... Proposal for Dual Pricing System on Delivery Chicken Prices

Promotion Aligned with Delivery App Win-Win Plan Implementation
"Only Increasing Consumer Burden" Criticism Also Raised

The Korea Franchise Association, which has major franchise brands as its members, is reportedly pushing for a plan to raise the prices of delivery chicken.

On the 22nd, Yonhap News reported that the association is discussing the introduction of a 'dual pricing system' that sets delivery menu prices higher than in-store prices, focusing on large chicken franchise brands. The dual pricing system is being considered for introduction early next year when the win-win plan prepared by the delivery app win-win council is implemented. The association plans to expand the dual pricing system to other industries such as pizza, starting with chicken brands. An association official said, "Since chicken shops have the largest share of delivery sales, we decided to start with chicken brands," adding, "We are discussing the introduction of the dual pricing system starting with major chicken brands that are members."

A representative from the chicken franchise BBQ said, "The headquarters is not considering the introduction of a dual pricing system," but also lamented, "The burden on store owners due to delivery fees is significant enough for the association and others to consider the introduction of a dual pricing system." A representative from another chicken brand, bhc Chicken, stated, "If the association proposes it, we plan to review it positively," while Kyochon Chicken emphasized, "We are not considering it."

Previously, when the win-win plan agreed upon by the delivery app win-win council is implemented, store owners in the top 35% of delivery sales will face increased expenses for orders under 25,000 won compared to now. Although the brokerage fee will be reduced from 9.8% to 7.8%, the delivery fee burden will increase. The top 35% of delivery sales mostly include the three major large chicken franchises?BBQ Chicken, bhc Chicken, and Kyochon Chicken?as well as pizza and hamburger franchises.

However, the delivery industry pointed out that the average order amount across all delivery apps is 25,000 won, suggesting that there are not many situations where store owners in the top 35% of sales would suffer losses. Additionally, it is estimated that when the win-win plan is implemented, store owners will spend 100 won more than currently for an order of one 20,000 won chicken, and critics argue that if the dual pricing system is introduced, prices could increase by 1,000 to 2,000 won, placing too heavy a burden on consumers.