2024-04-23 12:02:37
Go Pizza and Mr. Pizza’s latest menu has been posted… Eating out prices soar
Aftermath Pizza company: “Raw material prices have risen too much… “There are no plans for an increase yet.”
While the prices of chicken such as Goobne Chicken and Popeyes have risen, Go Pizza, a franchise that focuses on cost-effectiveness, has also recently joined the list of price increases.
This is largely due to the pizza industry’s poor performance last year due to the impact of raw material price increases.
It appears that concerns about price instability are becoming a reality, with the prices of restaurants popular with the common people, such as chicken and pizza, rising.
According to the industry on the 23rd, Go Pizza raised the price of each pizza by 1,000 won last month.
For example, the price of pepperoni pizza increased by 10.1% from 9,900 won to 10,900 won. Bacon potato pizza also rose 9.3% from 10,700 won to 11,700 won.
However, Go Pizza explained that it is cheaper than this because a discount of 2,000 won is always applied for individual pizzas and sets that include pizza when ordering at the store.
The price of carbonated drinks such as cola and cider also increased by 500 won. Pasta and side dishes were excluded from this increase. Accordingly, the price of the set menu was also increased by 1,000 won.
A Go Pizza official said, “Although it is a one-person pizza concept, the types of ingredients used to maintain quality and taste are not much different from existing large pizzas, so the cost ratio is also higher than that of the same industry,” adding, “Food ingredients, labor costs, and store management costs are continuously increasing. “In order to maintain the existing quality, we inevitably raised the price,” he said.
In the same month, Mr. Pizza also raised the prices of its drinks. The price of 500ml cola/cider, which was previously 1,400 won, was raised by 21.4% (300 won) to 1,700 won.
The price of 1.25 liters of cola and cider, which was 2,000 won, jumped 15% to 2,300 won.
Due to the rise in raw material prices, pizza industries such as Pizza Hut and Papa John’s Korea already raised prices last year.
At the end of June last year, Pizza Hut raised the prices of large sizes by 1,000 won and medium sizes by 600 won.
Papa John’s Korea also raised the prices of some side dishes and drinks, such as pasta and risotto, by 5.9 to 18.3 percent in March last year. Mr. Pizza also raised the prices of pizza and side menus by 4-5% in February of last year.
A sales-and-less-negotiationby-maria-josefina-lanzi/” title=”Cycle change. The increase in property prices anticipates more sales and less negotiationBy María Josefina Lanzi”>price increase is expected to be inevitable this year as well due to increases in raw materials and logistics costs. However, they are still cautious about the increase.
An official at Papa John’s Korea said, “Last year, operating profit fell slightly due to the rise in raw material prices, but sales actually increased. Since it is an American brand, it is inevitable that it will be affected by raw material prices, but there are currently no plans to increase prices.” said.
An official at Pizza Hut Korea also declined to comment, saying, “We are not considering a price increase for the time being.”
An industry official said, “The overall pizza franchise industry has achieved poor performance due to the significant increase in prices of raw materials, labor, and logistics costs,” and added, “For companies that did not raise prices last year, a price increase is inevitable.”
In fact, the pizza industry performed poorly overall last year.
Go Pizza posted 15.8 billion won in domestic sales last year, up 10.7% from the previous year. On the other hand, the operating deficit was 5.8 billion won, an increase of 20.1% compared to the previous year.
Pizza Hut Korea also recorded an operating loss of 4.5 billion won last year, an increase of 1665.7% compared to the previous year (operating loss of approximately 300 million won). The operating deficit has increased by about 18 times. Sales decreased by 14.8% from approximately KRW 102 billion in 2022 to approximately KRW 86.9 billion in 2023.
Pizza Al Volo also performed poorly last year. Albolo F&C, the operator of Pizza Alvolo, recorded an operating loss of about 2.9 billion won last year. This is an increase of 124.1% compared to approximately 1.3 billion won in 2022. Sales were about 34.9 billion won, a 17.4% decrease compared to about 42.2 billion won in 2022.
Pizza alvolo recorded a loss from 2018 to 2019, but succeeded in turning a profit in 2020. However, after turning to deficit again in 2022, operating loss more than doubled in 2023.
Papa John’s Korea recorded an operating profit of about 4.2 billion won last year. This is a 13% decrease compared to approximately 4.8 billion won in 2022. Sales were KRW 68.1 billion, a 2.4% increase from KRW 66.5 billion the previous year.
Papa John’s Korea’s operating profit surged from about 900 million won in 2019 to about 4.5 billion won in 2020, then recorded about 6.3 billion won in 2021, but decreased to about 4.8 billion won in 2022.
Cheong ODPK, which operates Domino’s Pizza in Korea, fared well last year, with operating profit of about 5.1 billion won, up about 347.8% from the previous year.
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2024-04-23 12:02:37