Paris Baguette to Raise Prices Amid Rising Costs from High Oil Prices and Weak Won

Paris Baguette is set to increase prices on a range of products starting August 25, marking its first price adjustment in 18 months. The move comes as the company faces mounting cost pressures from prolonged Middle East conflicts, which have driven up global oil prices and consequently, logistics expenses and raw material costs due to a weaker Korean won.

The price hike will affect approximately 86 types of bread and 41 types of cakes and desserts, with an average increase of 5.0%. Specific items like the 'Sangmijong Saengsikppang' bread will rise by 5.1% to 4,100 won, 'Castella' by 4.2% to 2,500 won, and 'My Number One Cake' by 2.9% to 36,000 won.

Paris Baguette joins a growing list of food and franchise businesses implementing price hikes. Tous les Jours recently raised prices by an average of 8.2% on 76 items, Dunkin' Donuts by 6.5% on 39 items, and Goobne Chicken by 8.7% on some side menus. Processed food manufacturers are also affected, with Ottogi increasing prices on cup noodles and dumplings, CJ CheilJedang on items like Hetbahn and dumplings, Pulmuone on various food categories, and Nongshim on noodles, snacks, and beverages.

Industry sources attribute these widespread increases to the combined impact of elevated international oil prices, increased naphtha costs for packaging materials, and higher import expenses due to the strong dollar. Companies state these adjustments are unavoidable due to rising raw material and operational costs.

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We have unavoidably adjusted prices due to the rise in raw material costs and various related expenses.