Franchises account for 70% of Korean chicken eateries: data


Fried chicken is a beloved snack in South Korea, often enjoyed with cold beer and popular for various occasions. However, the country's $5.7 billion fried chicken industry is facing challenges, with a growing number of franchises dominating the market. Recent data from the Korea Fair Trade Commission and Statistics Korea indicates that major franchises are expanding rapidly, accounting for 71 percent of all fried chicken establishments in 2022, up from 64 percent in 2020. Despite this growth in franchise outlets, the total number of chicken eateries actually decreased from 41,742 to 41,436 during the same period. The rise in food delivery app usage has significantly contributed to this trend, with app-based ordering nearly tripling in revenue from 2019 to 2022. This has heightened the importance of brand recognition, giving major franchises an advantage in reaching more customers through large-scale promotional campaigns. Furthermore, the data also reveals a 7.6 percent drop in aggregate annual operating profits of franchise chicken outlets in 2022, indicating financial strain within the market. South Korea's top three chicken franchises by revenue in 2023 were identified as BHC, Genesis BBQ, and Kyochon, according to the Financial Supervisory Service.


Previous Post Next Post