Seven domestic food franchise companies, including Kyochon, Lotte GRS, and Paris Croissant, have signed an agreement with the Fair Trade Commission (FTC) to notify consumers in advance when increasing the prices or reducing the weight of food products. The companies, which also include Dining Brands Group, BR Korea, CJ Foodville, and Genesis BBQ, agreed on February 27 to provide information at least one week in advance through their websites and the media if they plan to raise recommended consumer prices or reduce product weight.
For franchise business operators, it was decided to educate and guide franchise owners to post price increase plans in stores at least one week in advance. This agreement is a follow-up to the “Response Plan for Deceptive Practices in the Food Sector” announced in December last year by the FTC along with related ministries, including the Ministry of Food and Drug Safety. The intention is to provide accurate product information and support consumers’ rational decision-making.
The response plan includes a requirement for the top 10 chicken franchise headquarters and stores to display total pre-cooked chicken weight along with prices on menu boards. Additionally, if product weight is reduced, guidelines require notifications such as: “The combo boneless chicken weight has been adjusted from 650g to 550g and the price per gram has increased slightly.”
The FTC plans to award bonus points in the evaluation of agreement implementation if businesses comply faithfully with the agreement according to the Franchise Business Act. FTC chair Joo Byung-ki mentioned in a message distributed before the agreement ceremony in Seoul that while companies may feel burdened to inform consumers of price increases or weight reductions, it could lead to self-assessment and restraint against excessive increases or reductions.
Additionally, Joo encouraged efforts to lower dining menu prices, referring to recent industry moves to decrease prices amid regulatory pressures and accusations of collusion in the pricing of sugar and flour, urging industry players to ensure that all citizens benefit from the reduced cost of raw materials.