Kyochon F&B, which celebrates its 30th anniversary this year, has achieved the highest performance since its founding last year.
Kyochon’s consolidated sales last year reached 4476 billion won, an 18% increase from the previous year, and its operating profit increased by 4% to 41 billion won, which was announced on the 15th that both sales and operating profit achieved the highest performance since its inception. In particular, Kyochon’s operating profit in the second half increased by 68% to KRW 25.7 billion, compared to KRW 15.3 billion in the first half, showing continued growth throughout the year.
Last year, sales of all Kyochon chicken franchisees exceeded 1 trillion won (based on franchisees) for the first time ever. The closing rate was only 0.08% compared to the total number of affiliated stores (1269) in just one store. Sales per affiliate also increased by 14% compared to 19 years. The increase in franchise sales is attributed to the expansion of delivery demand in the non-face-to-face era. In 2020, delivery sales of all Kyochon Chicken affiliated stores rose 21% compared to 19 years.
Kyochon plans to continue its growth by increasing production per store through the conversion of medium and large stores. If hall operations continue to normalize this year, mid- to large-sized stores are expected to bring structural growth to the domestic chicken business.
In particular, this year, the headquarters distribution center will be expanded to prepare for an increase in the order volume of affiliated stores. In the first half of the year, the metropolitan area distribution center and the southern (Gimhae) distribution center are scheduled to be completed. In the case of the metropolitan distribution center located in Pyeongtaek, it can accommodate an average of 200 tons or more per day with a land area of 5000 pyeong. This is more than two times higher than the existing capacity (about 85 tons). With the expansion of the logistics system, Kyochon plans to lay the foundation for growth in all business areas, including new businesses such as HMR, as well as domestic chicken business.
Chairman So Jin-se of Kyochon F&B Co., Ltd. said, “2021 is the year to mark the 30th anniversary of its founding, and it is the time when the second leap forward in Kyochon will be in full swing.” “We will do our best to implement our vision.”
Reporter Yeon Hee-jin, Global Economics [email protected]