Home > Business > Industry

Korea's fried chicken chains reduce portions amid rising costs

Published: 13 Sep. 2025, 17:11

A Kyochon Chicken store in central Seoul in 2023 [NEWS1]

With dining-out prices still climbing, Korea’s fried chicken chains are turning to “shrinkflation,” trimming portions instead of raising menu prices. Critics say companies are playing tricks by reducing bird weight and mixing in cheaper cuts, while the industry defends the moves as a last resort measure to avoid list price hikes amid rising input costs and unstable supply.

Kyochon Chicken, operated by Kyochon F&B, cut the precook weight of some boneless items from 700 grams (25 ounces) to 500 grams — nearly a 30 percent reduction — starting Thursday, according to franchise industry sources on Friday. The reduction applies to two existing items, Soy Sauce Boneless and Red Boneless. Ten new boneless items released the same day, including Mala Red Boneless and Honey Garlic Boneless, launched at 500 grams precook weight from the outset.

Ingredients and preparation methods also changed: existing boneless chickens had sauces coated through brushes but will now be mixed together. The boneless line, previously consisting of 100 percent thigh meat, will incorporate some breast meat. A Kyochon official said the adjustments in weight and composition aim to improve franchisees’ profitability.

Sticker prices remain unchanged, but smaller portions mean the effective price for consumers is higher. Nor is Kyochon alone. Toreore Chicken, run by Nonghyup Moguchon, switched the size grade of its frying chickens late last month from No. 11-sized chickens to No. 10-sized chickens, effectively cutting weight by about 100 grams at the same price. No. 11-sized chickens refer to those between 1,051 grams and 1,150 grams, while No. 10 chickens weigh less at 951 grams to 1,050 grams.

Industry officials say portion changes were unavoidable as chicken supplies tightened and prices rose due to factors such as weather and avian influenza outbreaks in Brazil. The Korea Rural Economic Institute said last month’s farm-gate broiler price was 1,889 won ($1.36) per kilogram, up 8.6 percent on year, after spiking to 2,403 won per kilogram in May — a 56.8 percent jump from a year earlier in the first half. Kim Ju-young, an official at the Agriculture Ministry’s Livestock Management Division, said dry conditions and heat waves depressed productivity, contributing to price increases.

Domestic chains that use Brazilian thigh meat, including Norang Tongdak and Gcova Chicken, are also highly exposed to swings in import prices. The Agriculture Ministry said Korea imported 158,000 tons of Brazilian chicken last year, about 86.1 percent of the total 183,600 tons of chicken imports. After an avian influenza case in Brazil in May, the government halted all poultry imports, then resumed them last month after roughly a three-month pause. Some chains failed to hold the line on costs during the hiatus and raised prices on certain items.

“With sharp increases in inputs like chicken and flour, simply scaling back discounts and coupons isn’t enough,” said an official from a chicken franchise. “Headquarters can only absorb so much loss, so we’re looking for every workaround short of raising list prices.”

A “flexible pricing” approach that allows franchisees to charge more for delivery menus than the headquarters’ suggested prices is spreading, increasing the burden on customers who order delivery. Because franchisors cannot legally force retail prices on franchisees, most chains set recommended prices that owners generally follow. As delivery platform fees have risen, more owners have priced delivery menus higher than in-store, leading to differences of 2,000 to 3,000 won for the same brand across stores on delivery apps.

Jadam Chicken became the first major chain to formally adopt a headquarters-level “dual pricing” policy in April. BHC followed by granting store-by-store pricing flexibility from late May, implementing the change in June. A BHC official said orders via the company’s own app or in-store follow headquarters’ recommended prices, adding that the goal is to steer customers to the chain’s app.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.