Following McDonald's and Burger King
Lotteria, No Brand, and Subway Raise Prices
Reflecting Higher Raw Material Costs and Exchange Rates
Major fast food franchises including Lotteria, No Brand Burger, and Subway are consecutively raising their prices. Industry insiders cite the global increase in raw material costs and the rising exchange rates as the reasons behind the price hikes.
On the 28th, LotteGRS, which operates the burger franchise Lotteria, announced that starting from the 3rd of next month, it will raise the selling prices of 65 items, including 23 types of burgers, by an average of 3.3%.
The price increase per product ranges from a minimum of 100 won to a maximum of 400 won. The representative menu items, Ria Bulgogi and Ria Shrimp, will increase by 200 won for both single items and sets, making the single item 5,000 won and the set 7,300 won. Miracle Burger and Mozzarella in the Burger - Bacon will each increase by 400 won.
A LotteGRS official stated, “Due to the increase in overall costs as well as external environmental factors such as overseas exchange rates and climate change, the cost burden has intensified, making it inevitable to raise prices to maintain franchisees' profit margins.”
On the same day, No Brand Burger, operated by Shinsegae Food, also announced plans to raise prices. This is the first price increase for No Brand Burger in 1 year and 2 months since February last year.
No Brand will raise the selling prices of burgers and side menus by an average of 2.3% starting from the 1st of next month. Accordingly, 19 types of burger singles and sets will increase by 200 won, and 19 types of side singles will increase by 100 won.
The price of the representative product, Grilled Bulgogi, will rise from 2,900 won to 3,100 won for the single item, and from 4,900 won to 5,100 won for the set. Garlic & Garlic will increase from 3,700 won to 3,900 won, and the set from 5,700 won to 5,900 won. However, prices for 12 types of beverages will remain unchanged.
Shinsegae Food stated, “Due to the cumulative increase in various direct and indirect costs involved in operating No Brand Burger, it was inevitable to adjust prices.”
Earlier, McDonald's and Burger King also adjusted their prices.
Korea McDonald's raised prices of 20 menu items by an average of 100 to 300 won (2.3%) on the 20th. Burger King also raised prices of some products by 100 won on January 24th, with an average increase rate of 1.07%.
Sandwich franchise Subway also announced on the same day that it will raise menu prices starting from the 1st of next month. This is the first price increase in 10 months since June last year.
The representative 15cm sandwich menu will increase by an average of 250 won (about 3.7%) for single items. Accordingly, the 15cm Egg Mayo will increase by 200 won (3.5%) from 5,700 won to 5,900 won. Italian BMT will rise by 300 won (4.3%) from 6,900 won to 7,200 won. Steak & Cheese will be adjusted by 300 won (3.7%) from 8,200 won to 8,500 won.
A Subway official said, “Due to increased burdens such as raw material costs, labor costs, public utility fees, and other expenses, we are adjusting prices for some menu items.” This price increase is Subway’s first in 10 months since June last year.
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