Although the price of chicken, a core raw material for fried chicken, has fallen significantly, menu prices at major fried chicken franchises remain unchanged. The industry stated that it continues to face other cost burdens such as labor costs and that headquarters had partially absorbed cost increases when broiler prices rose in the past. It expressed its intention to make efforts to reduce consumer burden through discount coupons and promotions rather than lowering official prices.
According to the Korea Broiler Association on the 7th, the market price of refrigerated chicken (size 9-10), primarily used for fried chicken, was 3,769 won per kilogram as of the 6th, down 29.0% from the March peak of 5,308 won. Prices had fallen to 3,308 won per kilogram last month before recently rebounding slightly.
Despite the decline in broiler prices, recommended prices for major menus are being maintained. BBQ's Golden Olive Chicken and Kyochon Chicken's Honey Combo are each priced at 23,000 won, while bhc's Burry King is 21,000 won. Actual selling prices may vary depending on the franchise store and ordering channel.
The industry explained that there are differences in the actual purchase prices borne by headquarters. They noted that due to long-term supply contracts, it takes time for market price fluctuations to be reflected in purchase prices, and costs also arise during processing, marinating, packaging, and logistics processes. Franchise stores bear the burden of cooking oil, labor costs, and rent, as well as delivery platform fees and delivery-related costs.
It was also emphasized that when chicken prices surged sharply at the beginning of this year, headquarters absorbed part of the costs by reflecting franchise owners' opinions, thereby suppressing price increases. In fact, bhc and Kyochon last adjusted their prices in December 2023 and April, respectively, while BBQ did so in June 2024, after which they have maintained the recommended prices for their representative menus.
The industry explained that instead, it has consistently continued discount events to reduce consumer burden. BBQ provides a 5,000 won discount coupon daily for in-store pickup orders through its own app. Discount coupons for major fried chicken brands can also be easily found on delivery platforms such as Baemin and Coupang Eats.
It is also easier to adjust the discount magnitude and conditions per event than to lower official prices. If official prices are lowered, resistance to re-increasing them becomes strong when raw material prices rise, whereas discounts allow for adjustments in duration and scale depending on costs and demand conditions. Discounts through company apps are also utilized as a means to reduce dependence on delivery platforms and secure direct customers.
However, the atmosphere is such that consumer dissatisfaction is growing because the same fried chicken is purchased at different prices depending on whether there is a discount. If one does not know about discount information, they must pay the full price, effectively purchasing it more expensively, and fatigue can accumulate from having to compare prices every time an order is placed. Questions are also being raised about why prices are not lowered even though discount events are operated "permanently" under various pretexts.
Controversies surrounding fried chicken prices have led to a government investigation. The Fair Trade Commission sent investigators to the headquarters of BBQ, bhc, and Kyochon on the 6th to conduct an on-site investigation into potential price collusion and cost burden structures. This comes one week after President Lee Jae-myung shared an article stating that fried chicken prices remained unchanged despite falling broiler prices and stated, "I will check on this once."
A source in the fried chicken industry said, "It is not the case that total costs decrease by the same magnitude just because chicken prices fall," adding, "Competition for market share among companies is fierce, and fighting over ideas is a daily occurrence, but there is no reason to collude on prices unless it is a price war."
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