▲ Last year’s sales status per franchise by franchise industry. (Statistical Office)
Last year, franchise franchisees, employees, and sales all increased from the previous year. The Korean people’s love for chicken continued, and the sales of chicken franchisees and sales per franchisee rose the most to 24.7% and 21.7%, respectively. However, sales per franchise were the third lowest in the last place.
According to the results of the 2019 franchise (merchant) survey (provisional) released by the National Statistical Office on the 24th, the number of franchisees last year was 216,000, an increase of 2.6% from the previous year. Compared to the previous year, pizza and hamburgers (7.9%), Korean food (6.2%), and household laundry (5.7%) increased significantly, while draft beer and other pubs fell to 14.4%.
The number of workers was 848,000, an increase of 3.9% from the previous year. Compared to the previous year, pizza and hamburgers (9.0%), convenience stores (7.7%), and car repairs (7.6%) increased, while draft beer and other pubs (-15.4%) and foreign foods (-4.9%) decreased.
The sales amounted to 74 trillion won, an increase of 8.7% (6 trillion won) from the previous year. Compared to the previous year, chicken (24.7%), household laundry (17.0%), pizza and hamburgers (15.8%) increased, while draft beer and other pubs (-10.6%) and stationery stores (-7.0%) decreased.
The sales per franchise was 344.2 million won, an increase of 6.0% (193 million won) from the previous year. By industry, chicken (21.7%), kimbap and snack foods (12.1%), and household laundry (10.7%) increased compared to the previous year, while stationery stores (-6.4%) and pharmaceuticals (-3.8%) decreased.
The top businesses in sales per franchise were medicines (1 billion5.7 million won), convenience stores (551.7 million won), and car repair (4698 million won), and the lower sales sectors were home laundry (170 million won), draft beer. · Other pubs (181.3 million won) followed by chicken (25.8 million won).
The number of franchisees by region was Gyeonggi (55,000), Seoul (41,000), Gyeongnam (15,000), and Busan (14,000) in that order, with the metropolitan area accounting for 49.6% of the total.
The number of franchisees per 10,000 residents was high in Jeju (49.9), Gangwon (49.6), and Ulsan (45.9), while Jeonnam (36.7) and Gyeongbuk (38.5) were small.