50 % price rooster in supermarkets, “It continues to be so”: Donga Weekly

“My grandson from elementary university questioned me to acquire ‘Dangdang Chicken,’ so I came to acquire it. Last time, I couldn’t get in on a initial-arrive, first-served foundation, so I arrived 2nd.” (Mo (70) Yoon, a resident of Mapo-gu, Seoul)

“Because we not only cook and offer Dangdang Chicken, we inevitably limit the variety of sales since there is a scarcity of personnel. As before long as they appear out, they are all offered out, so you will find in no way any hen still left in excess of.” (Homeplus Hapjeong Seller)

At all-around 10:30 in the morning on the 23rd of August, a long selection of citizens arrived to acquire ‘Dangdang Chicken’, which costs 6,990 won per rooster, at the cooking foodstuff corner of Homeplus Hapjeong branch in Mapo-gu, Seoul. Homeplus has been advertising Dang Dang Hen at 6,990 won per rooster given that June 30. Consumers can only invest in 15 chickens cooked at 11 am. A single citizen reported that he had been waiting in line for an hour from 10:00, the opening time of the mart, to match within just 15 men and women.

As the charges of rooster from well known franchises increase all at when at superior charges, affordable grocery store hen like Dang Dang Rooster is turning out to be additional common a short while ago. Starting off with Homeplus, Lotte Mart briefly sold ‘Handong Chicken’ at 15,800 won at 8,800 won, and E-Mart launched ‘No. 9 Fried Chicken’ at 5,980 received. Consumers are ever more curious about what tends to make big supermarkets promote chicken for fifty percent to a third of the rate of franchises, and irrespective of whether there is any bubble in franchise rooster.

‘Dangdang Chicken’, which Homeplus has been promoting for 6,990 won per individual since June 30. It incorporates fried chicken and french fries. [이슬아 기자]

Supermarket “We don’t offer hen at a reduction”

There is a whole lot of opinion about the ‘cost-powerful chicken’ of the large three supermarkets as a bait item. Even if the hen is sold at a loss, the buyers who take a look at the mart intention for the income they get when buying other products and solutions. In reaction, the grocery store aspect stated, “It is not promoting at a reduction.” While it is not achievable to reveal the distinct selling price composition, supermarkets have a great deal of room to save expenses in the producing procedure, in contrast to franchises.

The straightforward distribution structure is the key aspect that permits significant marketplaces to promote hen at small prices. A Homeplus official claimed, “The mart gets uncooked rooster, a key component in chicken, and cooks it there. As there is no process of redistributing raw products to franchisees as franchisors, we can reduce distribution costs.” In the chicken franchise field, head office buys uncooked rooster and sells it back again to the franchisees. Shipping and delivery and logistics charges incurred at this time are bundled in the rate of franchise chicken. On the other hand, supermarkets do not have these kinds of an intermediate course of action, so hen rates are affordable.

Supermarkets do not need to have to have independent franchises. The mart already has a ready food stuff part, so there is no more price for equipment and manpower. A Homeplus official defined, “There is no will need for a individual shop, so the lease is not provided in the chicken price tag. . The reality that there is no shipping expense and the disposal level is very low is a person of the expense reduction factors. Mart Rooster is marketed on site only, so there is no added supply cost. Mainly because it is in a ‘peel-damae’ form, there are pretty couple of conditions in which the solution is thrown away.

No added price owing to a easy shipping and delivery framework

Chickens from popular franchises price tag much more than 20,000 received for every hen. Raw rooster, the essential ingredient, was dispersed at 3,343 won final year, up 500 to 600 received from the previous calendar year, but the franchise headquarters sends it mostly by way of affiliated broiler businesses these as ‘Harim’, so it chickens are supplied at a lower price. Nonetheless, the value of franchise rooster has exceeded the consumer’s ‘psychological edge’ and a bubble is being talked about. In response, the rooster franchise industry explained, “The value of raw products has risen mostly since of the war in Ukraine.

If you look at the grocery store and the real franchise rooster, there is a variance in the sizing of the raw chicken and the substances (refer to the graph). In the case of supermarket rooster, No. 8 uncooked hen (all around 3,000 to 4,000 gained) is utilized mainly. If you appear at other cost components, it tends to be uncomplicated with supplementary supplies like oil and wrapping paper (about 1,000 to 2,000 won) and VAT (about 700 won). There are no lease, labor, or shipping and delivery expenses, and seasoning, rooster radish, and beverages are not involved. On the other hand, franchises ordinarily use No. 10 cured and lower uncooked chicken (about 5,000-6,000 received), and the value of the chicken consists of the rate of oil, wrapping paper, seasoning , chicken radish, and beverages (about 3,000-) 4,000 received). In addition, there are several components that influence the price tag, these kinds of as price added tax (about 1800-2000 won), rent and labor prices (about 2,000 gained), shipping system cost (about 3,000 received), and a supply charge compensated by the shop proprietor (about 3,000 won).

The field claims that the “cause why there is a variation in the rate of raw rooster or supplementary elements is because franchisees have their personal expertise.” An official from BHC said, “(Hen sold by the corporation) has quite a few variances from grocery store chicken these kinds of as the sizing of the uncooked chicken, the method of salting, and the variety of oil utilized. “Just as sushi offered in large supermarkets does not evaluate to sushi marketed in a Japanese restaurant, it is unreasonable to equate grocery store chicken with franchise chicken.”

As for the issue that the hen franchise headquarters is having profits from franchisees, a BHC formal defined, “It truly is not real.” The working income margins of BHC and BBQ previous 12 months, the two top chicken franchises in Korea, were 32.2% and 17.8%, respectively, better than the restaurant field ordinary of 8%. In this regard, a BHC official claimed, “The rationale BHC’s functioning income level is especially high is simply because, unlike other rooster franchises, there are nearly no profits and management prices,” he explained.

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Donga Weekly No. 1354 (p28~30)