viewer
Kyochon, the No.1 chicken industry, achieved the highest sales last year, further solidifying its position as the throne in the chicken market. In particular, the sales of the entire franchise exceeded KRW 1 trillion for the first time in history, and it is evaluated that the head office and the franchisees simultaneously achieved great growth in the new coronavirus infection (corona 19).
According to Kyochon on the 15th, last year’s consolidated sales amounted to 4476 billion won, an 18% increase from the previous year. Operating profit increased by 4% to 41 billion won, the highest performance since its inception in both sales and operating profit. In particular, operating profit in the second half increased by 68% to KRW 25.7 billion, compared to KRW 15.3 billion in the first half.
Last year, sales of all Kyochon chicken franchisees exceeded 1 trillion won for the first time ever. The closing rate was only 0.08% compared to the total number of franchisees (1,269) in only 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.
In response to the growing demand for chicken, the strategy to switch to mid-to-large stores was also through. The sales of chicken at 106 stores that were converted to mid- to large-sized stores last year increased by 26% compared to before conversion. Considering the hall operation restrictions caused by Corona 19, it is an analysis that the expansion of kitchen infrastructure following the store conversion was also effective in increasing delivery demand.
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. The metropolitan distribution center located in Pyeongtaek can accommodate an average of 200 tons or more per day with a land area of 5,000 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 sectors, including new businesses such as home meals (HMR), as well as domestic chicken business.
This year, overseas expansion, which was temporarily delayed due to Corona 19, will also be in full swing. Last year, Kyochon’s overseas business generated sales of about 12 billion, and about 35% increase from the previous year despite the impact of Corona 19. Currently, 42 stores are in operation in 6 countries and plans to enter Singapore, the Middle East and 9 countries in Africa in the first half of the year. The global K-food fever is also expected to be a favorable environment for overseas business expansion. Kyochon expects 2021 to be a turning point from the global market development stage to the full-scale growth stage. New business results, such as strengthening online business and expanding HMR and processing source business, are also expected to be visible.
Gyochon F&B Chairman So Jin-se said, “2021 is the year to mark the 30th anniversary of the founding of Kyochon, and it is the time when the second leap forward in Gyochon will take place.” I will do my best to practice it.”
/ Reporter Park Hyung-yoon [email protected]
< 저작권자 ⓒ 서울경제, 무단 전재 및 재배포 금지 >