Will Chicken Prices Rise Again? bhc Raises Frying Oil Supply Price by 20%
Creatrip Team
3 months ago
Dining Brands Group, operator of bhc Chicken, has raised the supply price of oleic sunflower frying oil (15kg) to franchisees by 20%, from 75,000 won to 90,000 won, effective June 30. This is the first supply-price hike in about 3.5 years; the company says rising import costs and exchange rates pushed oil prices up about 36% year-on-year and made it unsustainable for headquarters to absorb the cost. Dining Brands says this is a supplier-price change, not a direct consumer-price increase, but analysts warn that bhc’s recent adoption of a “self-pricing system” (자율가격제) for franchisees could lead stores to raise menu prices to cover higher ingredient costs. The chain has about 22,941 franchised locations nationwide. Other chicken brands have also shifted to flexible or higher delivery pricing, suggesting an industry-wide trend toward more expensive fried chicken. Dining Brands estimates the oil cost increase equals roughly 200 won per chicken and says it will try to persuade franchisees to minimize any price hikes; prices may be lowered again if market conditions improve.
