Fried chicken price war heats up among discount retailers

A shopper picks up a bucket of fried chicken at an Emart store in Seoul during the discount chain’s promotional event, Sunday. A notice board in front of the customer shows that the day’s supply of fried chicken has sold out. Yonhap

The country’s largest superstore chains are locking horns over discounted fried chicken, slashing prices to 5,000 won ($3.66) or less — a price unseen in decades.

The promotion, a runaway hit for Emart, Homeplus and Lotte Mart, reflects a broader trend in Korea’s retail food market, where persistent price hikes over the past year have driven consumers to seek more affordable options. Fried chicken, a popular item for dine-in, takeout and delivery, has been no exception to inflation. By offering the discount, companies are striving to attract customers who have increasingly been spending less amid rising living costs.

Lotte Mart, a discount chain brand of Lotte Group’s retail subsidiary Lotte Shopping, launched a weeklong discount starting June 26, selling a bucket of fried chicken for 5,000 won. Lotte Mart sold approximately 100,000 fried chickens during the event at their 110 stores nationwide, seeing long queues of visitors.

Emart, the retail arm of Shinsegae Group and the largest among the three major chains with more than 150 stores, offered fried chicken for 3,480 won ($2.55) during a three-day promotion that began Friday. Homeplus launched its own four-day event on Thursday, priced at 3,990 won ($2.92).

Each location of the discount chain companies sold a limited quantity of 50 to 150 per day, limiting sales to one basket per customer. Due to the limited quantity, some stores saw visitors lined up even before they opened.

The simultaneous discount event on fried chicken by the nation’s three major discount chains is drawing attention for its rarity. Shoppers expressed surprise, noting that it is virtually impossible to buy fried chicken for 5,000 won or less these days, with prices at leading franchise brands such as Genesis BBQ, BHC, and Kyochon Chicken typically exceeding 20,000 won per order.

Visitors look at discounted fried chicken buckets at Lotte Mart’s Zettaplex branch at Seoul Station, June 26. The price was slashed from 12,500 won to 5,000 won as part of a limited-time promotion. / Yonhap

Fried chicken remains one of Korea’s most beloved food items and a telling indicator of market trends. Since Genesis BBQ became the first local franchise to price a whole chicken over 20,000 won in 2016, industry players have steadily raised prices. Today, all major brands sell a whole chicken for 23,000 won or more.

A recent factor fueling price hikes was the government’s decision in May to suspend imports of Brazilian chicken, following an outbreak of highly pathogenic avian influenza in southern Brazil. The country is the world’s largest chicken exporter and accounts for up to 90 percent of Korea’s chicken imports.

Although major franchise firms said they have been using only domestically sourced poultry, other companies that relied on Brazilian imports have been hit hard.

Rising operation costs — including ingredients, wages and delivery fees for food-ordering online platform operators — have consistently driven price hikes at major companies. Genesis BBQ raised its prices by 3,000 won over two years, starting in May last year. BHC followed suit in December and Kyochon implemented a similar increase in April 2023.

In contrast, large discount chains have seized the opportunity by introducing their own budget fried chicken offerings. By cooking in-store and selling directly from shelves, retailers like Emart, Lotte Mart and Homeplus avoid costs tied to distribution, marketing, delivery platforms and franchise fees, allowing them to price a whole chicken around 10,000 won or less.

Bulk purchasing of core ingredients such as cooking oil and seasoning also helps keep prices low.

The pricing gap has led to a surge in demand. Emart and Lotte Mart reported fried chicken sales rose 22 percent and 10 percent, respectively, in the first half of this year compared to the same period last year. Homeplus said sales at some of its stores quadrupled over the same time frame.

"We will keep launching discount events for fried chicken, whether 50 percent or other figures. Fried chicken is one of the most beloved foods among consumers, so we have selected it for the discount event. Besides, because of the high market prices, we wanted to contribute to stabilizing the country's food market by lowering the price," said Song Jae-ok, a marketing official from Lotte Mart.

"Fried chicken tends to wield the largest influence in consumer trust among the precooked category at the discount chains based on price competitiveness, quality and taste. With our discounted price just one sixth that of major franchise brands, we have seen that our discount event was a big hit," an Emart official said.

Market analysts say these budget chicken offerings often serve as loss leaders — products sold at a loss to attract customers and boost overall store sales.