2024-07-15 17:10:10
“The price of food has gone up, so there is no profit even if we sell it.
“Affiliates request dual pricing system for stores and delivery”
“I have completely cut off from the delivery platform since last week. There is nothing left, so what good is taking delivery orders? On Chobok (the 15th), I will not take any delivery orders at all and will only take dine-in and take-out orders.”
Mr. Hwang, who runs the ‘Dakhanmari’ restaurant in Wangsimni, Seongdong-gu, Seoul, said on the 14th that he was driven to a point where he had to stop taking delivery orders altogether. Mr. Hwang also said, “Other stores in the area are also worried about whether they should not take delivery orders at all or continue using the service despite paying high brokerage fees.” Self-employed business owners are growing increasingly anxious after Baedal Minjok, the number one business with over 60% of the food delivery app market, recently announced that it will raise the brokerage fee for its fixed-rate plan ‘Baemin 1 Plus’ from 6.8% of the food price (excluding VAT) to 9.8% starting next month. Baemin, which had the lowest brokerage fee, will now be the same as its competitor Coupang Eats (9.8%) after this reorganization. Yogiyo currently charges a brokerage fee of 12.5%. Baemin also offered a carrot measure of lowering the delivery fee borne by restaurants by 100-900 won per unit, but restaurant owners pointed out that the commission fee burden is much greater than lowering the delivery fee by a few hundred won.
As the burden of brokerage fees increases, restaurant owners are forced to raise food prices or even give up delivery orders. If food prices are raised in a chain reaction, it will lead to inflation, and the burden will eventually be passed on to consumers.
Kim Young-myeong, who runs a kimbap restaurant in Yangju, Gyeonggi Province, said, “It’s gotten to the point where there’s really no answer. There are many people around me who are going out of business, and if they don’t go out of business, the only way is to raise the price of food.” The cost of food has been steadily rising for the past two to three years, increasing the burden on self-employed business owners, and now that Baemin is raising its brokerage fees, the blow is so big that he’s considering closing down.
Park Seung-mi, policy committee chair of the National Franchisee Association, said, “In the case of one hamburger and chicken franchise company, franchisees were having difficulty holding out any longer, so they requested the headquarters to introduce a ‘dual pricing system’ that charges different prices for in-store and delivery orders.” The idea is to secure a margin for delivery orders.
The Online Platform Fair Trade Network, the National Franchisee Association, and others plan to hold a press conference in front of the headquarters of Woowa Brothers, the operator of Baemin, on the morning of the 15th. Woowa Brothers released a statement on the 14th, saying, “In this rate revision, an increase in the brokerage fee rate and a decrease in the delivery fee were applied together,” and emphasized, “In order to accurately see the change in the burden on business owners, we must also consider the fact that the delivery fee burden on business owners was reduced by 100-900 won depending on the region.”
Reporter Jang Eun-ji [email protected]
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2024-07-15 17:10:10