Latest news with #Baemin
Straits Times
8 hours ago
- Business
- Straits Times
Pizza store's extortion of delivery tips leads to lawsuit in South Korea
Pigubnam Pizza said it will take action against the store in question for unlicensed use of its official menus. PHOTO ILLUSTRATION: PEXELS SEOUL - A local pizza franchise has vowed to seek legal action against one of its former branches, which stirred controversy by keeping delivery tips and making unlawful use of the franchise store's menus. The pizza store located in Bucheon, Gyeonggi Province had been adding a 2,000 won (S$1.80) tip to online delivery orders, by having the customers select an option labeled 'I'll enjoy it' for the extra charge. The only alternative was an option that leads to the cancellation of the order, meaning a customer is forced to pay the additional fee for no extra feature. After the controversy, the store changed the labeling of the tip option to 'Give me the pizza' and the basic order option to 'Only the sauce is provided'. The store was removed from delivery platform Baemin on June 25, which said such practices violated its terms of service. Based on the pizza store's options, the public was initially led to believe that the shop had belonged to a local pizza franchise named Pigubnam Pizza that has 80 branches nationwide. But the franchise said that the while the store had been under its umbrella from 2022 to 2024, its licensing contract had been terminated. In a public statement posted on June 25, Pigubnam Pizza said it will take action against the store in question for unlicensed use of its official menus. The company said the contract bans former franchise store owners from running their own pizza joint for two years after the deal is terminated. The Food Sanitation Act states that the price that appears on the menu should include all charges for the particular dish, banning stores from charging delivery fees that are not set by the delivery platform. THE KOREA HERALD/ ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
Korea Herald
17 hours ago
- Business
- Korea Herald
Pizza store's extortion of delivery tips leads to lawsuit
Pizza store forces customers to pay 2,000-won tip to receive orders A local pizza franchise has vowed to seek legal action against one of its former branches, which stirred controversy by keeping delivery tips and making unlawful use of the franchise store's menus. The pizza store located in Bucheon, Gyeonggi Province had been adding a 2,000 won ($1.5) tip to online delivery orders, by having the customers select an option labeled "I'll enjoy it' for the extra charge. The only alternative was an option that leads to the cancellation of the order, meaning a customer is forced to pay the additional fee for no extra feature. After the controversy, the store changed the labeling of the tip option to "Give me the pizza," and the basic order option to "Only the sauce is provided." The store was removed from delivery platform Baemin on Wednesday, which said such practices violated its terms of service. Based on the pizza store's options, the public was initially led to believe that the shop had belonged to a local pizza franchise named Pigubnam Pizza that has 80 branches nationwide. But the franchise said that the while the store had been under its umbrella from 2022 to 2024, its licensing contract had been terminated. In a public statement posted late Wednesday, Pigubnam Pizza said it will take action against the store in question for unlicensed use of its official menus. The company said the contract bans former franchise store owners from running their own pizza joint for two years after the deal is terminated. The Food Sanitation Act states that the price that appears on the menu should include all charges for the particular dish, banning stores from charging delivery fees that are not set by the delivery platform.
Yahoo
6 days ago
- Business
- Yahoo
Woowa Brothers agrees to waive commissions on small orders
South Korea's Woowa Brothers and vendor associations have reached an agreement to waive all commissions for orders under Won10,000 (around $7.27) and to provide tiered support for delivery fees. The move is part of a broader plan to offer up to Won300bn in backing to vendors up to 2028. Woowa Brothers announced the agreement, mediated by the Democratic Party's Euljiro Committee, with the Korea Franchisee Union and the Association of Fair Platform Business Owners. It is in response to concerns that vendors have been disproportionately affected by high costs for smaller orders, which could result in them bearing more than 40% of the order amount in delivery fees and commissions. It also includes a waiver of commission for the vendor-funded part of the discount coupons issued by franchise HQ. Online delivery platform Baedal Minjok (Baemin) is operated by Woowa Brothers. The delivery platform had excluded discounts funded by restaurants or franchisees from commission calculations, and this new agreement expands these exemptions. The support will extend to orders between Won10,000 and Won15,000, with certain methods of support to be determined later. According to Woowa Brothers, the agreement incorporates further measures including creating a specialised centre to handle vendor inquiries, refining the compensation claim system, reducing the complexity of vendor-related administrative tasks, and introducing a direct communication between vendors and delivery personnel to improve vendor convenience. These initiatives were conceived following dialogues with vendor associations that commenced in late March. Woowa Brothers' annual support could reach up to Won100bn, totalling up to Won300bn over three years, if these were implemented. In spite of the additional support, Baemin will uphold its present commission rate structure, which ranges from 2% to 7.8% under the current tiered rate plan based on vendors' Baemin1 Plus revenue. Woowa Brothers CEO Bum Seok Austin Kim said: 'By supporting small orders amid the rise in single-person households, we hope to provide convenience and benefits to consumers, while helping vendors grow the number of orders and reduce cost burdens.' In 2023, Baemin decided to cease its operations in Vietnam due to intense competition and economic headwinds. "Woowa Brothers agrees to waive commissions on small orders" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
