Despite COVID-19, Chicken Restaurants Surpass 30,000... Which Region Recorded Monthly Sales of 100 Million Won?

Finda, Nationwide Chicken Franchise Survey
'Seoul Jung-gu' Records Top Sales
Estimated Startup Cost 160 Million KRW

[Image source=Yonhap News]

Despite the COVID-19 pandemic, the number of chicken restaurants steadily increased, surpassing 30,000 nationwide last year. However, the average monthly sales dropped from 10.82 million KRW in 2019, before the pandemic, to below 7 million KRW last year. The chicken restaurant startup market is showing signs of intensified competition.

Fintech company specializing in loans, 'Finda,' announced on the 28th that as of the end of last year, the number of chicken franchise stores nationwide reached 32,000, a 15.4% increase compared to the previous year.

Looking at the number of franchise stores by year: ▲2019 - 23,687 ▲2020 - 25,347 ▲2021 - 27,718 ▲2022 - 31,982.

Although the number of franchise stores increased by more than 10% annually on average, the average monthly sales decreased compared to the pre-COVID period.

The average monthly sales by year were ▲2019 - 10.82 million KRW ▲2020 - 8.88 million KRW ▲2021 - 5.65 million KRW ▲2022 - 6.99 million KRW.

This analysis was conducted by Finda using artificial intelligence (AI) based on card payment data, and detailed sales data by region and store are available on the commercial district analysis platform 'Openup.'

Hwang Changhee, Product Owner at Finda, said, "Because chicken restaurant startups are perceived to have low entry barriers, an unexpectedly fierce chicken game competition is taking place. It is important to carefully review benchmarking sales trends of existing stores and analyze data on the commercial districts where you wish to start a business before preparing thoroughly."

Last year, regions with the highest average monthly sales for chicken franchise stores nationwide were mostly areas with many office workers.

The highest region (at the eup/myeon/dong administrative level) was Sogong-dong, Jung-gu, Seoul, with 102.05 million KRW. Adjacent areas in Jung-gu, Seoul, such as Euljiro-dong (72.11 million KRW) and Myeong-dong (68.34 million KRW), also ranked high, demonstrating the strength of downtown commercial districts.

In Gyeonggi Province, Namsa-eup in Yongin City, home to Hanwha Resort and three golf courses (85.83 million KRW), Haenggung-dong in Paldal-gu, Suwon City, famous for its chicken street (71.79 million KRW), and Sampyeong-dong in Bundang-gu, Seongnam City, near the core commercial district of Pangyo Techno Valley (66.10 million KRW), were among the top regions.

Among non-metropolitan areas, only Yangpo-dong in Gumi City, Gyeongbuk Province (59.40 million KRW), made it into the top 10 regions for average monthly sales. This area is notable as the location of the first store of Kyochon Chicken, a leading domestic chicken franchise. Many chicken franchise stores are densely concentrated around this area.

Meanwhile, Finda also revealed the practical estimated costs required to start a chicken franchise store in Jung-gu, Seoul, where the average monthly sales are the highest. The estimate assumes a large-sized store (76㎡) located on the first floor of a medium-to-large commercial building (mainly commercial use, three or more floors, or a general building with a total floor area exceeding 330㎡).

According to this, the initial monthly rent is 5.8 million KRW, the deposit (monthly rent x 10 months) is 58 million KRW, interior costs are 35.8 million KRW, and the average key money is 53.35 million KRW, bringing the estimated startup cost for a chicken franchise store in Jung-gu, Seoul, to approximately 159.25 million KRW.

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