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Labeling Rule Introduced for Fried Chicken Franchises Amid ‘Shrinkflation’ Concerns

Seoul: The government unveiled Tuesday measures to prevent "shrinkflation" practices of fried chicken franchises and other processed food manufacturers, officials said. The measures were jointly announced by the Fair Trade Commission and the ministries of food safety, agriculture, finance, and SMEs, following criticism directed at the major fried chicken brand Kyochon 1991 for reducing the portion size of its boneless fried chicken menu by 30 percent.

According to Yonhap News Agency, shrinkflation refers to a business strategy where companies reduce the size or quantity of a product while keeping the price unchanged. Under the new measures, ten major fried chicken brands will be required to indicate the weight of pre-cooked chicken on their menus, along with the price, starting on December 15.

The brands impacted by this new regulation include bhc chicken, Genesis BBQ, Kyochon, Cheogajip, and Goobne, which collectively operate approximately 12,560 franchise stores across the country. Currently, there is no mandatory weight-labeling system in place for the food service sector, including chicken brands.

Additionally, penalties will be strengthened for other processed food manufacturers if they do not notify consumers of a decrease in the size of their products. Until now, the food safety ministry could issue correction orders in such cases, but starting next year, it will have the authority to issue production suspension orders.

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