South Korean consumers are grappling with a lack of transparency in food delivery pricing as major restaurant chains implement higher charges for delivery orders without clear disclosure. (Image courtesy of Yonhap)
SEOUL, Sept. 30 (Korea Bizwire) – South Korean consumers are grappling with a lack of transparency in food delivery pricing as major restaurant chains implement higher charges for delivery orders without clear disclosure.
This practice, known as “dual pricing,” has sparked a debate about consumer rights and fair business practices in the country’s booming food delivery market.
According to industry insiders, four out of the top five fast food chains in South Korea—McDonald’s, Lotteria, Burger King, and KFC—have adopted dual pricing.
However, none of these companies clearly communicate the price differences between in-store and delivery orders on popular delivery apps like Baedal Minjok (Baemin).
Lotteria, which reintroduced dual pricing last month after a three-year hiatus, has increased delivery prices by 700-800 won for individual items and 1,300 won for set menu items.
While this information is available through a pop-up notice on the company’s own app, it remains obscure on third-party delivery platforms.
McDonald’s recently added a vague notice on Baemin stating that “delivery prices may differ from in-store prices” following public scrutiny, but failed to specify the extent of the difference.
Both Lotteria and McDonald’s charge 1,300 won more for delivery of their signature products compared to in-store prices.
The impact on consumers can be significant, especially for larger orders. A family of four ordering Big Mac sets from McDonald’s or Ria Bulgogi sets from Lotteria would pay an additional 5,200 won for delivery—a premium that many customers may be unaware of when placing their orders.
KFC, which reinstated dual pricing in March, has not provided any notice about the practice on delivery apps. Burger King’s notification is similarly vague, stating only that “delivery service menu prices may differ from in-store prices.”
This pricing strategy extends beyond fast food chains. Popular coffee brands like Mega MGC Coffee and Compose Coffee charge about 500 won more for delivery orders without informing customers of the price difference.
Lee Hoo-jung, head of the Online Transaction Investigation Team at the Korea Consumer Agency, emphasized the importance of clear pricing information. “To fully ensure consumers’ right to know, it’s best to clearly indicate the price difference for each item,” said Lee.
The Korea Consumer Agency has been pushing for greater transparency, urging delivery apps to clearly display dual pricing information.
The agency recently sent official requests to four delivery platforms, including Coupang Eats, recommending improvements in price display practices.
This marks the second such recommendation in 18 months, as previous suggestions in February 2023 went unheeded.
For instance, on Coupang Eats, it’s not immediately apparent which restaurants use dual pricing. Customers must click on “Store Information” and then search through “Store Introduction” or “Notices” to find any mention of dual pricing.
As the controversy grows, some companies are beginning to respond. Lotteria has promised to improve their notifications on delivery apps to match the clarity of their own app. McDonald’s stated they would discuss better ways to notify customers.
Ashley Song (ashley@koreabizwire.com)
