Hamburger and beer prices increase one after another

An office worker recently visited a gopchang (grilled pork or beef small intestine recipe) restaurant near Seoul City Hall Station with his friends and was surprised to see the prices on the menu: a bottle of soju costs 6,000 won (4.42 U.S. dollars) and a beer cost 8,000 won (5.9 dollars). The main menu, grilled special lamb (170 grams), cost 41,000 won (30 dollars), and cold noodles as dessert, which are smaller in serving size than ordinary ones, cost 9,000 won (6.6 dollars) per person. "After eating the main menu, no one brought up the idea of having dessert," the person said.

Recently, the prices of hamburgers and beer have increased one after another, as well as the prices of milk, sugar, and salt, which are the raw ingredients, raising concerns that food prices could jump again.

According to the distribution industry on Sunday, OB Beer, the nation’s No. 1 beer supplier, raised the factory price of its major beer products, such as Cass and Hanmac, by an average of 6.9 percent from Oct.11. It is the first time in 19 months since March last year that OB Beer has raised the prices of its domestic beer products. In general, when the factory price of beer increases by 5 percent, restaurants tend to raise consumer prices by 1,000 won.

Domino’s hikes in the hamburger industry are also becoming a reality. McDonald's is raising prices on 13 menu items, including the Big Mac, by an average of 3.7 percent starting next month. The price of a Big Mac will increase from 5,200 won (3.83 dollars) to 5,500 won (4 dollars).

There are still concerns that logistics costs could rise due to the unrest in the Middle East and other factors, which could further stimulate domestic prices. Last month, the consumer price index for processed food was 5.8 percent higher than a year ago and 15.0 percent higher than two years ago in September 2021. Dining out costs were also up 4.9 percent year-over-year.


somin@donga.com