Chicken Market Shakeup... bhc "Racing" Toward 'Unbeatable' Kyochon to Establish "Two-Strong System"

Kyochon Followed by bhc's Leap to a 300 Billion Brand
From a Single Leader to a Two-Strong System
Mid-Tier Ranking Competition Intensifies

[Asia Economy Reporter Lee Seon-ae] The chicken franchise market has shifted from a single dominant player to a two-strong system. Following Kyochon Chicken, bhc has joined the ranks of brands with annual sales exceeding 300 billion KRW, while other competitors remain below the 200 billion KRW mark, widening the gap.

According to industry sources on the 20th, bhc's sales last year are estimated to have increased to 320 billion KRW. Based on bhc's own data, the average annual sales per franchise store last year were 460 million KRW, a 40% increase from 330 million KRW in 2018. Considering this, bhc's sales rose from 237.6 billion KRW in 2018 to surpass 320 billion KRW last year.

bhc attributes its improved performance mainly to management improvements through clear role division between the headquarters and franchise stores, along with continuous development of new menu items and side dishes aligned with current trends. A bhc representative stated, "Based on transparent management and win-win management that we have continuously pursued, we believe customer trust has increased by faithfully fulfilling the inherent roles and responsibilities between franchise stores and headquarters," adding, "By launching trendy new menus and various side dishes that have been well received, last year the average monthly sales per franchise store achieved double-digit growth throughout the year."

As a result, bhc becomes the second brand in the industry to reach the 300 billion KRW sales milestone, two years after Kyochon Chicken. Until now, Kyochon Chicken was the only chicken franchise brand to achieve 300 billion KRW in sales. Kyochon Chicken first reached this milestone in 2017 with 318.8 billion KRW and recorded 330.5 billion KRW in 2018.

As the top brand, Kyochon Chicken's sales are understood to have increased to 370 billion KRW last year, maintaining stable growth thanks to the industry's most systematic franchise system and strong product brand power, earning it the reputation of an almost insurmountable number one. Last year, the average daily sales per franchise store were about 110 chickens. Among the 1,150 Kyochon Chicken stores nationwide, 662 stores sold more than 100 chickens daily, exceeding 54%. Of these, 84 stores sold over 200 chickens daily. A Kyochon Chicken representative explained, "According to the Fair Trade Commission's franchise business transaction registration, Kyochon Chicken has the highest sales per chicken franchise store."

The industry attaches significance to the restructuring of the two-strong 300 billion KRW brand system. However, the market ranking is expected to remain unchanged for the time being, with Kyochon Chicken first and bhc second.

BBQ ranked third again last year, with sales estimated to have slightly increased from 236.7 billion KRW to 250 billion KRW.

Goobne Chicken also maintained fourth place, with sales last year estimated to have risen to 170 billion KRW from 148.5 billion KRW in 2018. The launch of pizza products was a growth driver. The three types of Goobne Pizza, which incorporated popular sauces into pizza, sold 200,000 units within a month and a half, gaining popularity. Featuring distinctive black rice dough and fresh toppings, Goobne Pizza orders continue to soar this year. Goobne Chicken stated, "By expanding the menu categories beyond chicken to include pizza and various side dishes, we received a positive response in the market," adding, "We plan to continue developing diverse menu categories to satisfy consumers."

Meanwhile, competition among mid-tier brands is expected to intensify. An industry insider said, "Since bhc aims to catch up with Kyochon Chicken, the competition between these two leading brands will be a key point to watch," adding, "Additionally, the ranking battle among mid-tier brands such as BBQ, Goobne Chicken, Nene Chicken, Mexican Chicken, Cheogajip Seasoned Chicken, Pelicana, and Hosigi Dumari Chicken will also intensify."

This content was produced with the assistance of AI translation services.