Lotteria to Raise Prices on 22 Burger Items by 2.9%

South Korean fast-food giant Lotteria, a subsidiary of Lotte GRS, is set to implement a price increase across a significant portion of its menu. Starting June 28, customers will face higher prices on 22 types of single burgers, with the average hike amounting to 2.9%. This adjustment, translating to an increase of 100 to 300 won per item, reflects the growing financial pressures faced by the food service industry.

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Lotteria will increase the selling price of 22 single burger items, including the Bulgogi Burger and Shrimp Burger, by an average of 2.9% starting this month.

While the price increases are across the board, Lotteria has attempted to mitigate the impact on its most popular items. The iconic Bulgogi Burger and Shrimp Burger, for instance, will see a modest 100-won increase, bringing their single-item price to 5,100 won. This strategy aims to retain customer loyalty by minimizing the perceived cost shock for staple menu choices, even amidst broader price adjustments.

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The price increase is an unavoidable measure due to rising costs from high exchange rates due to global geopolitical instability and prolonged global supply chain imbalances.

Lotte GRS attributes these necessary price hikes to a confluence of external economic factors. The company points to a volatile global landscape, characterized by high exchange rates stemming from geopolitical instability, prolonged global supply chain disruptions, and escalating logistics and operational costs. These challenges, they argue, have made the price adjustment an unavoidable measure to maintain business operations and profitability.

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We decided to adjust the selling price after continuous discussions with the franchise business association to protect the profits of our franchisees.

Despite the price increases, Lotteria emphasizes its commitment to customer value. The company highlighted that the implemented rate of increase is lower than the rise in minimum wage and delivery fees, suggesting an effort to absorb some of the increased operational costs. Furthermore, a Lotte GRS representative stated that the decision was made after extensive discussions with franchise owners, aiming to protect their interests. Lotteria plans to continue offering various promotions, such as its "Lia Lunch" deals, to help alleviate the financial burden on consumers while ensuring the consistent quality of its products and services.

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We will do our best to maintain stable quality and service while alleviating the burden on consumers through various discount promotions, including Lia Lunch.