Chicken specialty market that grew to 7.5 trillion won
‘Self-employed grave’ escapes Oh Myung-seo and turns into a corona-benefit category
Kyochon, bhc, bbq Big 3 This year’s sales and affiliates all increased net
Kyochon bhc is expected to achieve 400 billion clubs (based on annual sales)
bbq chicken seems to break through the industry’s first 2000 store
Kyochon Chicken, bhc, and Genesis BBQ, which are counted as one of the top three chicken companies in Korea, are expected to record the largest sales since their inception this year. Kyochon and bhc are expected to enter the ‘400 billion won club’ for the first time. The chicken franchise benefited the most as the food delivery market grew due to the new coronavirus infection (Corona 19).
As the market grew, so did investment. Earlier this month, bhc received an investment of 300 billion won from the staff pension in Ontario, Canada. Kyochon F&B, the operating company of Kyochon Chicken, was listed on the stock market last month. This is the first case in the franchise industry that succeeded in direct listing rather than bypass listing. BBQ Chicken hit the jackpot by opening a delivery-only store for the first time. A chicken industry official said, “This year was an unprecedented year of investment and innovation.”
Kyochon·bhc annual sales likely to exceed 400 billion
According to the Fair Trade Commission, chicken restaurants were the number one business in closing rate for three consecutive years until last year. It was also called’the grave of the self-employed’. This is because the chicken restaurants in every alley were in overheating competition.
The Corona 19 incident has changed the situation. Sales of Kyochon Chicken, bhc, and BBQ Chicken, the three largest chicken makers, increased significantly this year. Kyochon’s sales, which were 380 billion won last year, are expected to reach 430 billion won this year. BHC, which surpassed the wall of 300 billion won with 318.6 billion won last year, is expected to exceed 400 billion won this year. BBQ chicken sales are expected to increase from 240 billion won last year to around 350 billion won this year.
bhc chicken
Until just a few years ago, the goal of annual sales of 300 billion won in the industry was called the’number of evil’ that was difficult to achieve. Gyochon first crossed this wall three years ago, and bhc stepped on the hill last year. Euromonitor, a market research firm, predicted that this year, the chicken specialty store market will reach 7.47 trillion won, the largest ever. This is a 53% increase from 2016 (4,8877 billion won) five years ago. “Chicken with high delivery demand has benefited from Corona 19 this year,” said Kim Young-mi, a senior researcher at Euromonitor.
Kyochon Chicken
BBQ’s innovation strategy
BBQ Chicken succeeded in introducing a new concept store’BSK (BBQ Smart Kitchen)’ this year. BSK is an ultra-small store of less than 30㎡ and is a delivery specialty store without seats and tables. Since it only delivers without receiving customers, it is free to select a location and requires a small initial capital. It was possible to start a business with 50 million won, including rent, and the challenge of store owners in their 20s and 30s continued. It opened more than 100 stores in 6 months.
Thanks to the BSK strategy, BBQ Chicken increased its stores by 300 this year alone. It ranks third in the industry in terms of BBQ chicken sales, but is the unrivaled number one in the number of stores. It is the first-generation franchise company that pioneered the chicken market in 1995, and has the highest number of franchise stores nationwide. This year, the gap with competitors has widened. As of this month, the total number of stores was 1800, which is overwhelmingly higher than Kyochon (1262) and bhc (1550).
This year, chicken franchises also started to expand sales through side menus and craft beer development. This year, Kyochon has launched five new side menus, including chicken burger, pretzel and chicken cutlet. More than the new chicken menu (three).
It is expected that the winning place next year will be craft beer. Kyochon is considering acquiring the handmade beer maker Moon Bear Brewing. It is planning to introduce handcrafted beer that can only be tasted in stores during the first half of next year. BBQ Chicken will complete a craft beer factory in Icheon, Gyeonggi-do in the first half of next year.
Reporter Park Jong-pil [email protected]
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