Processed Food and Dining-Out Price Hikes Triggered... Retailers in Wait-and-See Mode

Some Processed Foods and Household Goods at Convenience Stores See Price Hikes from June 1
Burger Chains and Coffee Shops Join the Wave of Increases
Middle East Conflict Drives Up Costs and Disrupts Supply Chains
Despite Upward Pressure, Retailer

There are signs that the prices of groceries, particularly processed foods, household goods, and certain restaurant menu items, are on the rise. This is attributed to the continued high inflation and strong exchange rates, as well as increased costs across the board—including raw material supply—due to the ongoing war in the Middle East. With the government maintaining a price stabilization policy, retailers are carefully monitoring the situation, and attention is focused on whether price hikes will broaden, especially for sensitive items.

A citizen is looking at products at a convenience store in Seoul. Photo by Yonhap News

According to industry sources on June 2, starting from June 1, the prices of some processed foods and household goods sold at major convenience stores have increased by about 5 to 10 percent. For example, Sajo Daerim’s ready-to-eat products such as “Spicy Skewer” and “One-Bite Skewer” increased by 18.5 percent from 2,700 won to 3,200 won, while “Smoked Chicken” rose 16.7 percent from 6,000 won to 7,000 won. In addition, the prices of other processed food products from this manufacturer, such as “Snow Crab King,” “Lobster King,” and “Charcoal Grilled Frank,” have also increased by around 10 percent compared to previous levels.

Among snack products, the prices of Pringles Original, Onion, and Hot Spicy flavors have each increased by 5 percent per package size starting on this day. In addition, “Sulbing Drinking Choco Brownie,” manufactured by Seoul F&B, increased by 100 won to 1,800 won, while “Adult Milk” in Walnut Almond, Black Sesame, and Black Bean flavors rose from 2,000 won to 2,200 won, and “Family Yogurt” went from 2,500 won to 2,700 won, each up by 200 won.

For household goods, Creio’s toothpaste and toothbrush sets, as well as bandages, have increased by 100 to 300 won, and snacks such as Dong-A’s “Bacchus Jelly” and “Sour Jelly” have also risen by 200 won from the previous 1,500 won starting on this day. Industry insiders attribute these price increases to the overall rise in costs, including raw materials, labor, and logistics.

However, so far, the price increases have not extended to sensitive items such as instant noodles, confectionery, and bakery products. Analysts suggest that the government’s strong stance on stabilizing grocery prices is causing major food manufacturers to hold off on price hikes. An industry official stated, “Although the cost burden is significant, there are currently no discussions about raising product prices.”

In the restaurant industry, however, price increases are already taking place. Earlier this year, burger franchises such as Burger King, McDonald’s, KFC, and Mom’s Touch raised the prices of major products by 100 to 300 won, and on May 28, Lotteria increased the selling prices of some menu items by an average of 2.9 percent. Among coffee franchises, The Coffee Bean raised the price of its Vanilla Latte stick coffee packs by up to 8.1 percent starting this month, and The Venti and Ediya Coffee also raised the prices of certain menu items by about 100 to 500 won last month.

These restaurant industry players cited the increasing cost burden as a result of higher prices for key food ingredients due to global instability, combined with fluctuating exchange rates and imbalances in global supply and demand, as reasons for the price hikes.

This content was produced with the assistance of AI translation services.