Korean Job Discussion Forums

[Stan Rogers]

I've noticed that many of the food franchises like Paris Baguette, Dunkin Doughnuts and some others at Incheon airport charge considerably higher prices than the same franchise stores elsewhere in Korea. My question is: are individual food franchises allowed to charge whatever they like or are they supposed to follow a uniform style of pricing? I've seen in some cases where prices at the airport can be up to 100% more for the same items sold elswhere. It looks like a classic case of price gouging.

[schwa]

Isnt that airports everywhere?

[crescent]

Yes, franchises are permitted different prices depending on location, especially at airports. Paris Baguette in particular practices regional pricing and even location specific pricing.
I used to teach execs in their head office in Daegu, and I brought up the fact that I saw the same item in two different stores a few ks apart being sold at difference prices.
They base their prices on the demographics of the location.

[Stan Rogers]

[northway]

How would antitrust laws come into play? It's a single entity. Antitrust would only come into play if they were colluding with Tous Les Jours to keep prices of sugary garlic bread high.

[EZE]

Think about the arbitrage opportunity. You could be sort of like a ticket scalper. But instead of scalping tickets outside of a football stadium, you could buy pastries at the Paris Baguette in the ghetto and scalp them under face value at the airport and make a tidy profit.

[Stan Rogers]

To be fair McDonalds in Incheon airport for example, does not engage in price gouging. Their prices are the same as other franchises in Korea.

I think it only fair to mention that not all franchise businesses in the airport are not ripping off their customers.

[big_fella1]

Before people scream too much keep in mind that airport rents are astronomical. Years ago we were looking at putting a business into an Australian airport and they wanted 23% of the turnover as rent. While I'm sure that Incheon isn't that bad, there is certainly a justification for higher prices at the airport.

[atwood]

Airport prices are pretty much always higher. They've got a captive audience and they take advantage of it. The consumer has the choice to buy or not to buy.

The McDonald's mentioned is an outlier, possibly because it's in an area of the airport that is accessible to all.

But this is an easy problem to solve--pack a lunch.

stan, I seem to remember you complaining about Costco hot dogs in the U.S. In the U.S., they're 100% beef while in SK they're 100% pork. They may well cook up differently and thus appear smaller, which is what you were complaining about, right?

[radcon]

Guy,
You are an expat. Haven't you been to many airports. Prices are always higher. I have been surprised that prices at Inchon airport are very low compared to other airports, especially in the west. Have you been to SFO? JFK?Lax? Prices are stupid high at those airports.

[optik404]

One good thing about Korea is that they don't try to screw you over with the prices at certain venues, like stadiums, airports, etc.

I think a cinnabon at LAX cost me like $8 last time I was there. I left it in my bag and forgot about it. Such a waste.

[Stan Rogers]

[atwood]

[Who's Your Daddy?]

In the basement there is a Korean restaurant. I think it is near the KEB bank. The prices aren't too high, maybe $8.

The prices are better than Narita - everything but the McDonald's is way over priced. The deal at Narita is the sleeping room - I recommend that!

[wanderkind]

Airport food is expensive.

Fact.