"After Work, Chicken and Beer Is the Only Joy..." Rising Grocery Store and Frozen Chicken Sales Due to Chicken Price Burden [Jumunetok]

Chicken Price Hikes Lead Consumers to Seek Alternatives
ZicoBa Raises Prices by 2,500 Won; Jadam Chicken Introduces Dual Pricing
Supermarket and Frozen Chicken Gain Popularity Amid Costly Delivery Chicken

Editor's NoteIt is an era where one serving of Samgyeopsal costs 20,000 won and a bowl of Jajangmyeon is 7,500 won. The consumer price index for 2024 stands at 114.18 (2020=100), and in 2025, due to continued high inflation, consumers are feeling an increased burden on their shopping baskets. Through the PocketTalk (Week+Money+Talk) series, we aim to share stories about consumption closely linked to our financial situations amid rapidly changing prices.

As chicken franchise companies continue to raise prices, consumers feeling the burden are turning to relatively cheaper alternatives such as supermarket chicken and frozen chicken. The number of chicken specialty stores has been gradually decreasing over the past few years.

Chicken Prices Rise One After Another... ZicoBa Raises Prices by 2,500 Won

According to the dining industry on the 6th, ZicoBa Chicken will raise the prices of all menu items by 2,500 won starting from the 7th. Accordingly, the price of the signature boneless seasoned chicken will be adjusted from 21,000 won to 23,500 won. ZicoBa Chicken also raised prices by 1,000 to 2,000 won across all menus in March last year. The company states that the price increase is inevitable due to rising costs such as delivery fees and labor expenses.

Jadam Chicken also raised chicken prices starting from the 1st by introducing a "dual pricing system (delivery pricing system)." The dual pricing system sets different prices for delivery and offline stores, and Jadam Chicken is the first chicken franchise to adopt this system. A Jadam Chicken representative explained, "We decided to implement this because the profit structure did not improve and the headquarters had no other alternatives."

As a result, when ordering Jadam Chicken for delivery, fried chicken is raised to 23,000 won, and seasoned and spicy chicken to 25,000 won. Considering that most chicken consumption is through delivery, consumers inevitably perceive this as a price increase.

Large Supermarket Chicken Gains Popularity with Cost-Effectiveness

'Dangdang Fried Chicken' sold for 6,990 won. Provided by Homeplus

As chicken prices continue to rise, consumers feeling the burden are turning to relatively cheaper alternatives such as supermarket chicken and frozen chicken. The three major supermarkets (Lotte Mart, E-Mart, Homeplus) are competing with franchise chicken by promoting their private brand (PB) chicken priced between 7,000 and 15,000 won. Although the weight is similar, the price is less than half, gaining popularity among consumers who prioritize cost-effectiveness.

Previously, Homeplus launched the 'Dangdang Chicken' series in 2022, with the first product being the 6,990 won 'Dangdang Fried Chicken,' which gained great popularity. As of August 2023, cumulative sales exceeded 10 million packs. Lotte Mart sells 'Big Chicken,' made with size 10 refrigerated chicken, for 14,990 won, and 'New Hantonggaaadeuk Chicken,' fried with one and a half size 9-11 chickens, for 12,990 won. E-Mart also strengthened price competitiveness by launching 'Saengsaeng Chicken' (9,980 won) in September 2022 and the 6,480 won 'Amazing Perfect Chicken' in 2023.

Frozen Chicken Also Gaining Attention Following Supermarket Chicken

Recently, frozen chicken products have also emerged as rivals to chicken franchises. In the past, they were shunned by consumers due to soggy texture and the inconvenience of frying in oil or cooking in an oven. However, with the spread of air fryers and advancements in batter and sauce manufacturing technology, cooking convenience and taste have greatly improved, drawing renewed attention.

A representative example is CJ CheilJedang's 'Gourmet Sobaba Chicken Soy Honey,' launched in April 2023. This product surpassed 10 billion won in cumulative sales within two months of launch and exceeded 100 billion won in sales by October last year. As the burden of franchise chicken prices increased, consumers turned to frozen products instead of delivery chicken.

With consumer sentiment shrinking, chicken prices rising, and cheaper alternatives gaining attention, the number of chicken specialty stores is on a declining trend. According to Seoul's commercial district analysis service, as of the fourth quarter of last year, the number of chicken specialty stores in Seoul was 6,001, down about 8.3% from 6,541 in the same period the previous year. The number of stores, which was close to 7,000 in the fourth quarter of 2020, has decreased by nearly 1,000 over four years.