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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Kyochon F&B, operator of Kyochon Chicken, announced that it will allow franchise owners to set their own prices for delivery orders in an effort to alleviate the growing cost burden from delivery app fees.
Starting September 1, some Kyochon franchisees increased chicken prices by several thousand won on delivery platforms such as Baemin and Coupang Eats, while keeping prices unchanged for dine-in customers and orders placed through the Kyochon mobile app.
Under Korea’s Fair Franchise Transactions Act, franchisors cannot force franchisees to set product prices. Instead, most franchise brands provide a suggested retail price, which franchisees typically follow.
A Kyochon F&B spokesperson said, “In accordance with franchise law, headquarters can only recommend, not mandate, pricing for franchisees. We are closely monitoring the rollout of differentiated delivery pricing and will continue discussions with franchisees to minimize consumer burden.”
Other chicken franchises have also introduced similar measures. BHC Chicken allowed franchisees to adopt independent delivery pricing in June, while Jadam Chicken became the first brand to officially implement a dual-pricing system in April, charging KRW 2,000 more for delivery orders compared to dine-in. Global fast-food chains including McDonald’s, Lotteria, Burger King, Mom’s Touch, and KFC already apply higher delivery menu prices.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
