bhc Considers Introducing "Flexible Pricing System"
Reflecting Franchise Owners' Burden from Delivery Fees and Other Costs
On May 27, chicken franchise bhc announced that it will introduce a "flexible pricing system" that allows franchise owners to set their own chicken prices. This measure comes in response to the increased burden on franchise owners due to rising delivery fees and other costs.
A bhc representative stated on the same day, "Franchise owners requested the ability to set menu prices, so after discussions, we decided to implement the flexible pricing system at the beginning of next month." As a result, BHC franchise owners will be able to maintain, increase, or decrease prices at their own discretion, based on the recommended retail price set by the headquarters. The bhc representative added, "Although franchise owners now have the authority to set prices, the headquarters hopes that menu prices will be maintained."
Under the Franchise Business Act, the headquarters can recommend prices to franchisees but cannot enforce them. Therefore, it has been common practice for franchise headquarters to set recommended retail prices, which franchise owners generally follow.
The chicken industry, where delivery accounts for an overwhelming proportion of sales, has been reluctant to adopt a "dual pricing system"?charging higher prices for delivery menus than for in-store menus?out of concern for consumer backlash. However, last month, Jadams Chicken saw an increase in franchise owners wanting to introduce a dual pricing system due to high delivery fees. As a result, chicken prices sold through the three major delivery apps were raised.
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