South Korean Restaurants and Coffee Shops Hike Prices Amid Rising Costs

South Korean consumers face another round of price increases as several popular food and beverage brands announce hikes due to mounting cost pressures. The rising won-dollar exchange rate and global supply chain disruptions are forcing businesses, particularly those emphasizing value, to adjust their prices.

The Moreborn Korea group, known for its affordable dining options, will increase prices across some menu items from its 11 restaurant brands by an average of approximately 11%, effective June 9th. Specific adjustments include a 20.2% rise for 12 pizza items at Paik's Pizza, a 7.6% increase for 8 noodle dishes at Yeokjeon Udon, and a 6.3% rise for 3 grilled items at Saemaul Sikdang. The company cited rising costs for raw materials, labor, and other operational expenses as the reason for the "unavoidable" price adjustments, aiming to maintain menu quality.

The budget coffee sector is also feeling the pinch. Mega Coffee, a prominent low-cost chain, will raise prices by 200 won for three "Hal-mega Coffee" menu items starting June 19th. The company stated this decision was necessary to support franchisees and preserve product quality amidst rising ingredient costs driven by global events and currency exchange rates.

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The price adjustment was an unavoidable choice to secure the profitability of our franchisees and maintain quality amidst the pressure of rising raw material costs due to factors like war and exchange rates.

Other coffee brands have also implemented price increases. The Ventii increased prices for most coffee and beverage items by 200 to 500 won late last month, citing similar reasons of increased raw material costs and operational burdens from global instability. Ediya Coffee raised prices for its stick coffee and coffee mix products by 4.3% to 12.5% earlier this month, while Coffee Bean also increased the price of its vanilla latte stick coffee by up to 8.1%.

These successive price hikes are expected to further strain household budgets. Data from May shows the consumer price index for dining out stood at 127.83, an increase of 27.83% compared to the base year of 2020. This rise significantly outpaces the overall consumer price index increase during the same period, indicating that dining out has become considerably more expensive for South Koreans.

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Due to the rise in costs for raw materials and labor, and other store operating expenses, we have unavoidably adjusted the selling prices of some menu items to provide better quality.