‘Family month’ to be marked by dining out fears

McDonald's Korea, the leader of the hamburger market in the country, disclosed its plan to raise prices for 16 products (22% of its total offerings), effective next month. The average price hike amounts to 2.8%. This marks the first increase in seven months, following the last adjustment in October of the previous year, with an average of 3.7% raised prices of 13 menu items. Additionally, Pizza Hut is set to raise prices for its Garlic Butter Shrimp and Cheese King products starting Thursday.

Recently, Goobne Chicken, Popeyes, Kimgane Gimbap, and others have sequentially implemented price hikes, signaling a broader trend of restaurant franchise price increases across various sectors. The phenomenon, often termed a 'relay hike,' has drawn criticism, particularly coming right after the April 22 general elections. As May approaches, known as 'Family Month' in Korea and a period of increased dining-out demand, the strain on ordinary consumers is expected to escalate further. According to the Korea Consumer Agency's restaurant price data, the cost of one serving of cold noodles in Seoul surged by 7.2% in March year-on-year, reaching 11,462 won. Gimbap and bibimbap also experienced notable price upticks, rising by 6.4% and 5.7%, respectively. With the persisting high-interest-rate environment and the volatility of international oil prices, there are growing concerns that this trend may be exacerbated in the foreseeable future.

Restaurants are justifying their decision to raise prices by pointing to the escalating costs of raw materials, labor, and rent. "Considering the overall consumer price increase rate in the 3% range, the significant rise in labor costs and raw materials leaves us with little choice but to adjust product prices," an industry official explained. "Failure to do so would lead to negative margins. Further price increases could be on the horizon if this trend continues."


김형민 기자 kalssam35@donga.com