Kyochon hit for raising delivery fees

Kyochon F&B's delivery scooters are parked in front of a restaurant in Seoul on July 13. Newsis

By Kim Jae-heun

Kyochon F&B, the country's largest fried chicken franchise by sales, is facing growing criticism from consumers for raising delivery fees by 33 percent to 4,000 won ($3.05) from 3,000 won, according to consumer groups, Monday.

The company said the chicken delivery fees are decided by its franchisees and the headquarters has no say on individual franchise owners' decisions.

“I know there is criticism toward the headquarters over higher delivery costs, but it is not up to us to decide the rate. We just follow our franchisees' decisions,” a Kyochon F&B official said.

However, consumers refute Kyochon F&B's claim, saying its operating profit rose 8.1 percent last year, and if it shared its profits with franchisees, they would not have to raise the delivery fees.

“Kyochon F&B is avoiding its responsibility to the restaurant owners, which is the act of a coward. They have increased all the fees reflecting the recent inflated costs of food materials, labor expenses and public utility charges. Franchisees cannot deal with them all and that's why they are increasing the delivery fee,” a food delivery firm official said.

According to the Korea Broiler Council, the market price of chicken used at fried chicken restaurants went up by 20 percent from 3,923 won per kilogram last July to 4,692 won per kilogram this month.

The price of cooking oil also rose at a double-digit rate due to inflated international grain prices.

Kyochon F&B raised the price of canola oil by 14 percent to 59,400 won for a 16.7-kilogram box, which it supplies to its franchises.

“I cannot believe I have to pay 4,000 won for delivery now. It is 25 percent of the price of one fried chicken menu item. I might as well not order from Kyochon anymore,” a 34-year-old office worker surnamed Cho said.

Kyochon F&B has already been hit once before, in 2018 when it became the first fried chicken franchise here to adopt delivery fees. It originally introduced a 2,000 won delivery fee, which it later increased to 3,000 won.

Last November, the franchise operator increased the prices of its menu items by between 500 won and 2,000 won.