Lotteria will raise the prices of its burgers and other products for the first time in eight months. As food companies continue to increase prices, concerns are being raised that they are prioritizing profit-seeking and neglecting consumers.
Lotte GRS, which operates the burger franchise Lotteria, announced on the 28th that it will increase the prices of 65 menu items by an average of 3.3% starting April 3rd. The price increases will range from 100 to 400 won.
Lotte리아 previously raised product prices by 100 to 200 won in August of last year. The current increase is about twice as large as the previous one.
As a result, the prices of the popular Ria Bulgogi and Ria Shrimp burgers will each increase by 200 won (4.2%) to 5,000 won for the single patty. Set menus for these burgers will each increase by 200 won (2.8%) to 7,300 won. Miracle Burger and Mozzarella in the Burger-Bacon, among others, will each increase by 400 won. A representative from Lotte GRS stated, "In addition to increased general costs, the burden of raw material costs has increased due to external environmental factors such as overseas exchange rates and climate change, leading to the decision to raise prices to maintain the profit margin for franchisees."
No Brand Burger prices will also rise. On the same day, Shinsegae Food announced that it would raise the prices of No Brand Burger menu items by an average of 2.3% starting April 1st. This is the first price increase in one year and two months since February of last year. The prices of 19 single and set burger menus will each increase by 200 won, and the prices of 19 single side menus will each increase by 100 won.
With this price increase, the NBB Signature Burger single and set will cost 5,000 won and 6,800 won, respectively. The Grilled Bulgogi single and set will increase to 3,100 won and 5,100 won, respectively.
Subway will also raise menu prices on April 1st. The popular 15cm sandwich menu will increase by an average of 250 won (approximately 3.7%) based on the single item price.
Previously, McDonald's Korea raised prices on 20 menu items by an average of 2.3% (100 to 300 won increase) starting on the 20th of this month. Burger King also raised the prices of some products, including the Whopper, by 100 won in January.
The price increases are not limited to burgers; the prices of processed foods such as instant noodles, beer, and dairy products have also been rising steadily.
In response, the Korea National Council of Consumer Organizations issued a statement on the 28th, saying, "Food companies have cited rising exchange rates and international food prices as reasons for implementing food price increases in March and April. However, we question whether they are actually neglecting the burden on consumers in pursuit of improved performance and profits."
The council, comprised of over 10 consumer groups including the Green Consumer Network, emphasized that while the prices of some raw materials such as cocoa and coffee beans have risen, the prices of wheat flour, cooking oil, and corn have remained similar to last year or have even decreased. They also pointed out that the government is implementing support policies to alleviate the cost burden on the food industry, such as applying tariff quotas to 13 items including raw cocoa beans, coffee concentrate, and sugar, as well as exempting import value-added tax (10%) and providing funds for raw material purchases.
The council highlighted that the operating profits of major food companies such as Namyang Dairy (86.3%), Dongsuh Food (6.2%), Dongwon F&B (10.0%), Daesang (43.0%), Binggrae (17.0%), Orion (10.4%), CJ CheilJedang (20.2%), and SPC Samlip (3.5%) increased last year compared to the previous year. They criticized, "Given the expected strong performance and rising stock prices of food companies due to the popularity of K-food overseas, these consecutive price increases lack justification and are difficult for consumers to accept."
The council urged the government to "thoroughly re-examine tax and tariff benefits for companies that do not participate in price stabilization and to establish support policies focused on providing practical benefits to consumers."
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