Chicken’s top 3 accused of price fixing after a 3000 hundred-million-won legal battle? | Ye’s Story | EP.36
An independent exercise, not a statement by the video creator or verification of every claim in the video.
A cheaper input does not reduce total cost by the same percentage
Suppose hypothetical cost per order is 100, including raw-chicken purchases of 20. If the purchase price falls 30% while quantity and other costs stay fixed, savings are 20 × 30% = 6 and the new total cost is 94. Total cost falls 6%. Who receives the savings—the franchisor, franchisee or consumer—requires checking supply contracts and retail prices. Compare matching weights, delivery arrangements and discounts, then examine each party’s costs, fees and profit instead of simply adding franchisor revenue to store sales.
Check for yourself
- When does the procurement contract reset so that market quotes affect actual supply prices?
- Do observed price differences include changes in weight, packaging, delivery fees or responsibility for coupons?
- What evidence beyond price trends would establish an agreement?
Limits of application
100, 20, 30%, 6, 94 and 6% are explanatory assumptions, not estimates of actual brands’ cost shares or fair prices. Taxes and demand changes are excluded. The linked case concerns past chicken-meat suppliers; it establishes neither the outcome of the franchisor investigation described in the video nor current franchisee earnings.
- What to look for
- Explore why rivalry and litigation do not settle questions about pricing conduct, and trace costs from raw inputs to retail prices.
- Why it matters
- Compare prices for matching products, weights, channels and dates, then separate franchisor and franchisee accounts to test who receives an input-cost reduction.
Timeline
4 segmentsThe argument considers volatile raw-chicken quotes, procurement-contract lags and processing, logistics and store costs. Estimating the total-cost effect requires the input’s cost share and actual purchase-price change. Rising costs elsewhere do not by themselves justify an unchanged price, while an input-price fall does not automatically imply an equal retail-price reduction.