"They Were Known for Value, but... MegaMGC Coffee and Baekboy Pizza Follow with Price Hikes"

The Born Korea to Raise Prices of Select Menu Items by 11% at 11 Brands

MegaMGC Coffee to Increase Halmega Coffee Prices by 200 Won for 3 Varieties

Restaurant chains are rapidly raising their product prices, driving up dining-out inflation. Notably, franchises that have prioritized value for money, such as The Born Korea's brands including Baekboy Pizza and Rolling Pasta, as well as MegaMGC Coffee, have decided to increase prices.

According to the industry on June 4, The Born Korea plans to raise the prices of certain menu items by an average of about 11% across 11 of its brands starting June 9. The Born Korea currently operates a total of 25 restaurant brands. The brands affected by the price increases are: Yeokjeon Udon, Mijeong Guksu, Insaeng Seolleongtang, Jesu Sikdang, Hanshin Pocha, Dolbaegi Jip, Baek's Beer, Maki Oreum, Rolling Pasta, Baekboy Pizza, and Saemaeul Sikdang. The menu items with price increases account for about 20% of the total menus at these brands. The coffee franchise Paik's Coffee is not included in this round of price hikes.

Specifically, Baekboy Pizza will increase prices for 12 types of pizza by 20.2%, and for seven types of spaghetti and side dishes by 15.3%. At Rolling Pasta, the prices of four types of salads and side dishes will go up by 20.4%, while 17 types of pasta will rise by 10.2% and five types of pizza by 10.0%. Saemaeul Sikdang will raise the price of three grilled items, including fresh Korean pork belly, by 6.3%. Hanshin Pocha will increase the price of 15 types of side dishes, including charcoal-grilled boneless chicken feet, by 11.2%. Yeokjeon Udon will raise prices for eight types of noodles, including cold soba, by 7.6%, and for five types of pork cutlet, including Yeokjeon Donkatsu, by 5.6%.

A representative from The Born Korea stated, “We have absorbed as much of the increased costs as possible internally, including the rising exchange rate and global raw material supply instability due to domestic and international uncertainties, as well as higher logistics costs, to minimize the burden on customers. However, since last year, external cost pressures have surged to a level that is no longer sustainable internally. To protect franchisee profitability, we held ongoing discussions with each brand's cooperative body and adjusted only the minimum necessary menu prices that made price increases unavoidable.”

MegaMGC Coffee will increase the selling price of three types of “Halmega Coffee” by 200 won each starting June 19. As a result, Halmega Coffee will rise from 2,100 won to 2,300 won, Wang Halmega Coffee from 3,200 won to 3,400 won, and Halmega Misut Coffee from 2,900 won to 3,100 won.

The company explained that this price adjustment was an inevitable choice to maintain franchisee profitability and product quality amid cost pressures from rising raw material prices caused by external factors such as war and exchange rates. The MegaMGC Coffee team stated, “We decided to adjust the prices because the cost of freeze-dried (FD) coffee, which is the main ingredient in Halmega Coffee, has continued to rise, and prices for mix coffee products using similar ingredients have also been consistently increasing.”

Yonhap News Agency

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 also increased the selling price of some menu items by an average of 2.9%. In the coffee franchise sector, The Coffee Bean raised the price of stick coffee for vanilla latte bars by up to 8.1% starting this month, and The Venti and Ediya Coffee raised the selling prices of some menu items by 100 to 500 won last month.

Some franchises are adjusting by reducing product sizes instead of raising prices. On June 1, Goobne Chicken announced it would adjust the serving standards for its boneless chicken thigh, wing, and whole leg menu items. As a result, the pre-cooked weight standard for boneless chicken thigh has been reduced from 800 grams to 700 grams.

However, these price hikes have not extended to sensitive items such as instant noodles, confectionery, or bakery products. Analysis suggests that the government's strong stance on stabilizing basket prices has led major food manufacturers to refrain from price increases. A representative from the food industry commented, “While the cost burden is significant, there are currently no discussions underway regarding immediate product price increases.”

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