Nearly half of South Korean restaurant owners have raised their menu prices to offset mounting delivery app commission fees. (Image courtesy of Yonhap)
SEOUL, Feb. 18 (Korea Bizwire) — Nearly half of South Korean restaurant owners have raised their menu prices to offset mounting delivery app commission fees, which they cite as their biggest business burden, according to a new survey released on February 14.
The Consumer Network for Public Interest surveyed 502 restaurant owners and found that delivery platform commissions ranked as their most significant operational cost burden, scoring 5.68 out of 7 points. This was followed by taxes (5.46), food ingredients (5.41), utilities (5.38), labor costs (5.34), and rent (5.30).
The impact has been particularly acute for cafes, bakeries, and dessert shops, which rated delivery app fees as their heaviest burden at 6.07 points. The survey revealed that 47.6% of business owners have increased their menu prices specifically due to delivery app commissions, with an average price hike of 1,858 won.
In response to the fees, 34.8% of restaurants have implemented dual pricing, charging higher prices for delivery orders compared to in-store dining. This practice is most prevalent among independent Chinese restaurants in the Seoul metropolitan area, with an average price difference of 2,114 won.
Despite upcoming regulatory changes, restaurant owners remain skeptical about relief. Only 26% believe that a new tiered commission system, set to begin on February 26, will effectively reduce their burden. The new system will adjust commission rates based on each restaurant’s delivery sales volume.
The survey also found modest support for public delivery platforms, with 44.4% of restaurant owners viewing them positively as an alternative to commercial delivery apps.
Ashley Song (ashley@koreabizwire.com)
