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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Korea Consumer Association Council expressed regret over the chicken franchise bhc's increase in the price of 85 products by up to 3,000 won at the end of last month.
Earlier, bhc raised the recommended consumer price by 500 won to 3,000 won by raising the representative menu price from 18,000 won to 21,000 won on December 29, 2023. If the delivery fee is included in this increase, you will have to pay nearly 30,000 won to eat one bhc chicken.
bhc said it raised prices because of the cost burden, which the council criticized was not valid. What he suggested was bhc's average annual operating profit ratio.
According to the Korea Consumer Organizations Association, the average annual operating profit ratio of bhc for five years from 2018 to 2022 is 30.1%. It is exceptionally high compared to other brands and industries such as Kyochon and BBQ.
The same goes for net profit. bhc's sales cost growth rate in 2022 was 5.7% compared to 2018. Net profit, on the other hand, rose 31.8 percent.
The Korea Consumer Association urged bhc to withdraw the price increase, saying, "If bhc is actually for franchise profit, it is a more reasonable decision to cut the price so that it can be chosen by consumers."
Meanwhile, bhc refuted the statement of the Consumer Association Council, saying, "This price increase was a decision that reflected the request of franchise owners."
"The increase is largely due to an increase in additional costs such as delivery fees, delivery agency fees, labor costs, electricity, water and gas costs," a bhc official said. "Store owners are rather opposed to making multi-unit profits by cutting prices."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
