Food costs begin to bite as even burgers, beer grow pricier

Industry

Published: 29 Oct. 2023, 16:35 Updated: 29 Oct. 2023, 17:59

Food costs begin to bite as even burgers, beer grow pricier

Customers place orders at a McDonald's branch in Seoul on Oct. 26. McDonald's Korea said it will raise the prices of 13 menu items by on average of 3.7 percent starting Nov. 2. [YONHAP]

Food prices are going up, including even the cheapest fast food options, again putting pressure on household budgets despite hopes that prices were stabilizing.

McDonald's Korea said recently it will raise the prices of 13 menu items by an average of 3.7 percent starting Nov. 2.

It is the second price hike in the year since the burger chain upped the prices by 5.4 percent in February.

The price of the Big Mac will be increased by 300 won ($0.22) to 5,500 won, leaving Korea with the second most expensive Big Mac in Asia after Singapore.

The price of a Bulgogi burger will be upped by 300 won to 3,100 won while an Iced Drip Coffee will become 200 won pricier.

McDonald's Korea blamed the "increasing raw materials prices and labor cost" as the biggest reason behind the price hike.

A customer picks a Cass beer at a discount mart in Seoul on Oct. 11. Oriental Brewery (OB) increased the price of its major beer products, including Cass and Hanmac by an average of 6.9 percent. [YONHAP]

Oriental Brewery (OB) increased the price of its major beer products, including Cass and Hanmac by an average of 6.9 percent starting Oct. 11. It was the first price hike in 19 months.

Mom's Touch also decided to up the prices of its four burgers that use chicken breast as the main ingredient by 5 percent starting Oct. 31, citing the "growing prices of meat including chicken."

The price increases again raise concerns about household budgets as prices have been showing a constant slowdown in recent months amid the government's continuous efforts to tackle inflation.

The country's consumer price index in the restaurant sector stood at 118.34 in September, up 4.9 percent on year, according to Statistics Korea. The increase rate has been narrowing down for five consecutive months since April, but up 14.3 percent compared to two years ago.

Prices of processed foods rose 5.8 percent last month compared to a year earlier, but compared to the same month in 2021, it is up by 15 percent.

Prices for vegetable oil are down 0.1 percent on year last month, but a 55.1 percent jump compared to two years ago. Prices for flour soared 44.8 percent during the same period.

McDonald's price increase may influence other burger chains in the market, though chains including Lotteria, Burger King and No Brand Burger, a Shinsegae Food chain, said they have no plans to increase prices.

After Seoul Dairy Cooperative upped the price of its flagship milk brand Seoul Milk by 4.9 percent, Maeil Dairies and Namyang Dairy Products also increased the prices of their milk products by around 4 percent earlier in the month.

BY SARAH CHEA [chea.sarah@joongang.co.kr]