Will bhc Chicken Prices Rise? Franchisees to Set Prices from June

[Financial News] The chicken brand bhc of Dining Brands Group announced on the 27th that it will introduce a 'self-pricing system' where franchisees set chicken prices starting next month.
According to bhc, following requests from franchisees, the headquarters decided to introduce the self-pricing system at the beginning of next month after consultation. In the case of chicken franchises, there have been demands from franchisees regarding dual pricing systems (delivery app pricing) due to issues such as delivery fees. However, the franchise headquarters is urging restraint as different prices at each store could cause consumer confusion.
Currently, under the Franchise Business Act, the franchise headquarters cannot force franchisees to set product prices. Therefore, most franchises operate by having the headquarters set a recommended retail price that franchisees follow.
Currently, some bhc franchisees in areas with high rent are charging 1000 to 2000 won more than the recommended retail price.
With the headquarters deciding to introduce the self-pricing system, it is expected that more franchisees will charge higher prices.
There are concerns that as bhc, the number one in the chicken industry, opens the possibility of price increases through the self-pricing system, it might affect other franchises.
Currently, Kyochon Chicken allows stores in special commercial districts with high rent burdens to set prices 1000 to 2000 won higher after consultation with the headquarters.
Previously, some chicken brands like Jadams Chicken and Zicova Chicken have introduced dual pricing systems where delivery menu prices are higher than in-store prices.

hwlee@fnnews.com Lee Hwan-joo Reporter