Genesis BBQ hikes chicken prices, citing production costs

Industry

Genesis BBQ hikes chicken prices, citing production costs

Published: 21 May. 2024, 17:57 Updated: 21 May. 2024, 19:21

KIM JU-YEON
kim.juyeon2@joongang.co.kr

Genesis BBQ's flagship Golden Olive Oil Fried Chicken [GENESIS BBQ]

Major Korean chicken franchise Genesis BBQ is raising prices for 23 items on its menu starting from Thursday. Its flagship Golden Olive Oil Fried Chicken will rise 3,000 won ($2.2) to cost 23,000 won.

The products’ prices will increase by an average of 6.3 percent, Genesis BBQ said Tuesday.

The Jamaican Grilled Chicken, another popular option, will jump by 2,500 won to 24,000 won.

An additional 25 of the company’s 110 products — including the Jamaican Jerk Fried Chicken with Sotteok and the Galbi Chicken — will see an increase in both price and portion size.

For instance, the Golden Olive Oil Fried Chicken Combo meal, which includes drumsticks and wings, will gain an additional chicken drumstick, and its price will rise from 24,000 won to 27,000 won.

Six products will grow in portion size but not in price.

The prices of 56 products, including all 26 of the side dish options and 30 of the chicken options, will remain the same.

Genesis BBQ cited the increase in minimum wage and costs of ingredients, rent, delivery fees, delivery platform commission fees and utilities such as gas and electricity as the reason for its “inevitable” decision to raise prices.

The franchise did not specify the biggest contributing factors but did note that it expects 90 percent of the additional profit to go to its individual stores.

Genesis BBQ is the Korean chicken franchise with the most outlets both domestically and internationally and is in the top three in terms of sales.

The company previously upped its prices, including those of the Golden Olive Oil Fried Chicken by 2,000 won in May 2022, citing the increased costs of ingredients, logistics and wages. It also changed the oil blend of the signature chicken in response to escalating olive oil prices.

The brand has been pursuing more overseas expansion after seeing increased profits through its more than 700 overseas outlets that span 57 countries.

The other top two chicken franchises also raised their prices last year, with Kyochon F&B increasing those of its flagship products by 15 to 19 percent in April, citing the rise in raw chicken prices. BHC hiked rates by an average of 12.4 percent in December.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]