Wholesale and retail prices for domestic broiler chickens have been falling
President Lee Jae Myung has signaled he will look into the pricing practices of franchise chicken chains.
Lee shared a news article on his X (formerly Twitter) account Wednesday, writing, "I'll take a look at this." The article highlighted criticism that major franchise chicken chains have not lowered their menu prices despite a recent drop in broiler chicken costs.
According to livestock retail data from Dabom, both wholesale and retail prices for domestically raised broiler chickens have been declining. As of Tuesday, the wholesale price stood at 1,500 won per kilogram, down 7.8 percent from the same period last year and 11.3 percent below the average for the same time of year. The retail price was 5,456 won per kilogram, a 7.7 percent drop from a year earlier.
Domestic broiler chicken prices had surged earlier due to a highly pathogenic avian influenza outbreak last winter. Mass culling of infected broiler and laying hens triggered sharp price increases for both chicken and eggs nationwide, with retail prices in some areas climbing to over 7,000 won per kilogram.
At the time, the three major chicken franchise chains — BBQ, bhc and Kyochon — did not raise menu prices outright. Instead, they adopted workaround strategies, reducing the weight of chicken menu items and raising prices on side dishes.
Goobne Chicken was a notable example. The weight of its boneless chicken leg menu was cut 12.5 percent, from 800 grams to 700 grams. Prices on some side dishes, including spicy chicken feet and pasta, rose by as much as 12.5 percent. The spicy chicken feet dish went from 21,000 won ($15) to 23,000 won, a 9.5 percent increase, while the Bolognese pasta rose 4.5 percent, from 6,700 won to 7,000 won.
Prices for major brand chicken menus are approaching the 30,000 won mark when delivery fees are included. BBQ's Golden Olive Chicken Fried and Kyochon's Honey Combo are each priced at 23,000 won.
However, franchise headquarters also face significant labor and logistics costs involved in processing and delivering the broiler chickens they purchase. The growing adoption of dual-pricing systems has also limited headquarters' influence over final prices. Under dual pricing, individual franchise owners — not the parent company — independently set different prices for delivery and takeout orders. Major chains including bhc, BBQ, Kyochon and Puradak Chicken have introduced the practice.
soho0902@heraldcorp.com