Kyochon F&B Soars in Q1... Achieves Record-Breaking Performance

Q1 Sales and Operating Profit Increase by 17.4% and 13.2%, Respectively

[Asia Economy Reporter Lim Hye-seon] Kyochon F&B, the operator of the chicken franchise Kyochon Chicken, achieved record-breaking performance for the first quarter.

Kyochon's consolidated sales for the first quarter reached 123.9 billion KRW, a 17.4% increase compared to the same period last year. Operating profit rose by 13.2% to 10.8 billion KRW, and net profit increased by 17.0% to 7.8 billion KRW.

Kyochon explained that the rise in sales volume driven by continued growth in delivery and takeout demand led to the improved first-quarter results. As of the first quarter this year, Kyochon Chicken has 1,284 franchise stores, with no closures during the quarter.

New menu launches such as Real Fried, released in November last year, and Kyochon Cheese Truffle Boneless, launched in March this year, also contributed to the performance growth.

Kyochon plans to focus not only on its domestic franchise business but also on strengthening its overseas operations. In March this year, it signed a memorandum of understanding (MOU) for a master franchise agreement in Singapore, and in April, it signed the main master franchise contract for entry into the Middle East, accelerating its overseas business. Currently, Kyochon operates 47 stores across six countries, including the United States, China, Malaysia, and Indonesia.

Additionally, Kyochon plans to lay the foundation for sustainable growth by entering the craft beer business and activating new business operations such as home meal replacement (HMR) and processed sauce businesses.

On the 4th, Kyochon signed an asset transfer agreement with Indulge, which operates the craft beer brand Moon Bear Brewing, for the craft beer manufacturing business. Through this acquisition, Kyochon intends to develop differentiated craft beers and create synergy by leveraging its existing franchise business, fostering a win-win business model for both franchisees and headquarters. Without additional facility investments, Kyochon plans to quickly target the 'Chimaek (chicken + beer)' consumption culture using the already production-competitive brewery and the infrastructure of over 1,280 Kyochon Chicken franchise stores nationwide. Going forward, Kyochon will actively explore new business models utilizing craft beer.

So Jin-se, chairman of Kyochon F&B Co., Ltd., said, “As this year marks our meaningful 30th anniversary, we will continue to grow through win-win management with our franchisees, expanding overseas business and new ventures.”

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