soars to the ceiling Korea’s unstoppable foodie, this time it’s soju.
Following the recent news that the average price of eating out items, including jajangmyeon and naengmyeon, exceeded 10,000 won, the liquor industry is showing unusual movements. It has not been long since the price of soju sold at restaurants reached 6,000 won, and it is expected that the price of soju may rise again.
According to the liquor industry on the 19th, Daehan Alcohol Sales announced that it would raise the price of alcohol by an average of 9.8% from April. Alcohol is the main ingredient of soju made by fermenting carbohydrates such as rice or barley, and can only be purchased through Daehan Alcohol Sales. Last year, the price of spirits increased by an average of 7.8% due to grain price hikes caused by the Russia-Ukraine war, increased logistics costs, and a high exchange rate.
When the original price rises by 100 won, the restaurant ‘jumps’ by 1,000 won… Will the Soju Price of 10,000 Won Begin?
Photo = Yonhap News
It is not easy to maintain the price of soju in a situation where the price of raw materials for soju has risen. The industry predicts that an increase in the price of soju will be inevitable, citing the fact that the imported beer, whiskey, and makgeolli industries have already raised prices despite the government’s request for a price freeze. The problem is that if the soju industry raises the factory price by 100 won, the price of soju sold in restaurants will increase by more than 1,000 won. Accordingly, there are concerns that if the price of soju increases by 200 won in the second half of the year, ‘10,000 soju’ may appear in restaurants. Coming out. Most downtown bars in Seoul are already selling soju at a price of 6,000 won or more, and in Gangnam, soju is sold at 7,000 to 8,000 won.
It is known that about half of the price structure of a bottle of soju is tax. Assuming that the cost of soju is 550 won, 72% of the liquor tax is added according to the Liquor Tax Act and 21.6% of the education tax is added according to the Education Tax Act. Including up to 10% VAT, the factory price is determined in the early to mid-1,000 won range. Including logistics and labor costs in the middle distribution process, a bottle of soju made in this way is priced at around 5,000 won when sold at a restaurant.
So far, major liquor companies such as Hite Jinro and Lotte Chilsung Beverage are known not to consider raising the price of soju. Is it?” he explains.
Nothing to wear or drink… Dinner + a glass of soju and your wallet ’empty’
Photo = Image Today
According to the ‘Participation Price’, a comprehensive price portal of the Korea Consumer Agency on the 18th, the average price of the eight restaurant items most sought after by consumers in Seoul last month rose by up to 13% compared to the previous year. Samgyetang was the item with the highest price increase, up 12.7 percent from 14,500 won in April last year to 16,346 won last month.
Jajangmyeon rose 12.5% to 6,915 won, and pork belly (based on 200g) rose 11.4% to 19,236 won. In addition, the prices of all items subject to investigation, such as kimchi stew (8.6%), gimbap (7.4%), naengmyeon (7.2%), bibimbap (6.9%), and kalguksu (6.5%), rose all at once.
As of last month, there are only four food items that can be eaten with 10,000 won: kimchi stew, white rice, jajangmyeon, kalguksu, and gimbap. Looking at the National Statistics Portal of the National Statistical Office, the restaurant price index last month was 117.15 (2020 = 100), up 0.7% from the previous month. It has risen for 29 consecutive months since December 2020.
In this situation, if you add an accompaniment to your dinner, the burden on consumers to eat out becomes even greater. Due to the nature of the restaurant industry, where it is difficult to make a margin on meals and snacks, self-employed people usually make a profit from alcohol prices, but experts predict that if soju price increases accelerate먹튀검증, consumers will not be able to order even a bottle of soju, making it difficult for everyone.
Electricity rate + minimum wage increase, the boss is also “in tears”
Photo = Yonhap News
The industry is concerned that the recent hike in electricity and gas rates will also boost food prices. Electricity rates rose by 8 won per ㎾h and city gas rates by 1.04 won per MJ from the 16th . Due to the nature of the restaurant, there is no choice but to operate air conditioners and use a lot of gas fires, which inevitably increases costs.
The burden of the minimum wage is being added. Consumers are reducing eating out due to the burden of immediate expenses, but food service industry workers predict that the situation will get worse in the future.
Lee Eun-hee, a professor of consumer science at Inha University, said in an interview with a media outlet, “Consumers are already in a situation where their wallets are thin, so if restaurant companies raise prices, they may end up giving up eating out altogether.” will result in a reduction in
He continued, “It is difficult to innovate to reduce costs because most of the food service industry is small and small business owners. Because of this, it is a structure in which the increase in utility bills such as food ingredients, labor costs, and electricity and gas are passed on to prices,” he explained.