A file photo of a bhc chicken restaurant (Image courtesy of Yonhap)
SEOUL, Feb. 19 (Korea Bizwire) — A fried chicken franchise, bhc chicken, has been under fire for raising prices of its menu items, while changing part of its chicken ingredients to cheaper ones from Brazil, according to a consumer advocacy group Monday.
The franchise had used chicken produced in South Korea but decided to change to Brazilian chicken, citing a supply difficulty, in May last year.
The price of Brazilian chicken is more than 50 percent cheaper than Korean chicken, but bhc raised the price of its 85 menu items, including its seven fried boneless chicken items, by 500 won (US$0.38) to 3,000 won in December, citing a hike in ingredient prices, payroll costs and rental fees.
Some other domestic fried chicken franchises also used Brazilian chicken but did not raise the prices of their items.
“It is common sense that the burden of ingredient prices is reduced as Brazilian frozen meat is much cheaper than Korean chicken,” an official from the Korea National Council of Consumer Organizations said, noting bhc lacked reasons to increase its menu prices.
Bhc chicken had a relatively higher operating profit-to-sales ratio of 27.95 percent in 2022 and 32.24 percent in 2021, the official added.
On the matter, a bhc chicken official said the company plans to start using Korean chicken again after the contract with its Brazilian partner expires.
Bhc chicken is currently operated by Asian private equity fund MBK Partners.
(Yonhap)
