Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Kyochon takes heat for offering discounts after price hike
Baedal Minjok's delivery app shows the prices of Kyochon's most popular fried chicken menu items. Screenshot from Baedal Minjok's delivery app
By Park Jae-hyuk
By Park Jae-hyuk
An anonymous office worker in her 30s stopped buying fried chicken from Kyochon F&B after its price hike earlier this year, and remains reluctant to order from the major fried chicken franchise, despite its recent discount offerings.
“It was once my favorite fried chicken brand due to its sweet sauce, but I will continue to boycott Kyochon, as I'm still angry at its price policy,” she said.
Kyochon decided to offer a 3,000 won ($2.30) discount on its most popular menus if customers order using Baedal Minjok's delivery app between May 15 and 21. The fried chicken franchise operator is also distributing coupons to members of its own mobile app.
These events came about a month after the company raised the price of Kyochon Original to 19,000 won from 16,000 won, citing the rise in cost of rent, labor and various commissions, as well as a recent raw material price hike.
The price of its signature menu item, Honey Combo, also went up at that time to 23,000 won from 20,000 won. Given that consumers have to pay up to a 5,000 won charge for delivery service, Kyochon was considered to have taken a step closer to the range of a 30,000 won fried chicken meal.
After the price hike, it has faced boycotts from consumers who have already suffered under inflation. They have especially complained about Kyochon's decision, as it was Korea's first fried chicken franchise that started charging for delivery services.
In addition, consumers began to look for alternative fried chicken brands to Kyochon by seeking recommendations on affordable alternatives from other online users.
Some of them pointed out that Kyochon's temporary discount events will not reverse the worsening public sentiment toward the company.
“Even if it offers discounts, the prices of its fried chickens are still too high, considering delivery fees,” an internet user said.
Kyochon denied the speculation that its recent discount events were intended to calm consumers who are enraged at its previous price hike.
“The events were parts of our efforts to stimulate domestic consumption that has been slow since the second half of last year,” a Kyochon F&B official said.