Korean fast food chains turn to imports as domestic prices soar

(News1)

South Korea’s fast food industry is increasingly shifting to imports for ingredients as the lettuce harvest used in hamburgers, salads, and sandwiches deteriorates sharply due to abnormal weather.

After extreme summer heat was followed by sudden cold in the fall, market supply dropped by nearly 20 percent, sending prices soaring. Major companies struggling to secure lettuce have begun adjusting menus by using substitute ingredients and are now exploring broader supply-chain solutions.

According to multiple sources from the food industry on Sunday, SPC Group’s salad brand Pig in the Garden has decided to increase its use of imported lettuce. The brand has typically used a mix of domestic and imported lettuce depending on market prices.

Imports were used only sparingly between January-March and July-September, when domestic harvests are unstable. This year, however, the switch to imports has been moved up as domestic shipments quickly declined.

The company is now revising its procurement strategy to expand its reliance on imported produce.

Burger King is also accelerating efforts to diversify its supply chain. Domestic supply usually stabilizes in November, but the chain has started securing imports earlier than usual after prices surged. It typically inspects overseas suppliers in mid-to-late December, when domestic volumes typically drop.

The lettuce supply shortage continues to worsen.

Average daily lettuce shipments at Seoul’s Garak Market from November 26 to 28 came to 42.6 tons, down about 20 percent from 52.3 tons a year earlier. Wholesale prices for 12 heads of premium lettuce jumped 55.3 percent on-year to 33,700 won.

“Securing lettuce has become difficult, and more companies are turning to substitute vegetables or increasing imports,” one food industry official said.

Major chains, including Subway, McDonald’s, and LOTTERIA, have posted notices about unstable lettuce supply, with some outlets offering alternatives for specific menu items. In a previous cold-related shortage in 2021, some brands temporarily sold burgers without lettuce.

Industry analysts say climate volatility is likely to push food companies to reduce reliance on domestic production and build multi-country sourcing models to stabilize supply.