30th Anniversary Celebration
14 Varieties Including Chicken and Skewers... Product Diversification
Beginning of Convenience Store Ready-to-Eat Chicken in 2008
Strengthening Branding as a Breakthrough Amid Growth Limits
[Asia Economy Reporter Cha Min-young] The convenience store chicken from 'Ministop,' which was once enjoyed in lines after school, is being reborn as an independent brand. This move is seen as Ministop's attempt to bring change by branding its strong point?ready-to-eat chicken products?amid growth limitations.
According to the convenience store industry on the 28th, Ministop launched its private brand (PB) 'Chicken First' this year to celebrate its 30th anniversary. The brand name gives a sense of unity, reminiscent of its first PB, 'Mini First.' The product lineup (SKU) consists of 14 items in total, including 10 types of chicken and 4 types of skewers, systematizing existing products into a brand.
Chicken holds a special meaning for Ministop. Ministop was the first in the convenience store industry to introduce ready-to-eat chicken in 2008, successfully differentiating itself. As of the end of April, Ministop operates 2,594 stores, and most of these, excluding some special stores, sell ready-to-eat chicken. Currently, major convenience store chains including Ministop, CU, GS25, 7-Eleven, and Emart24 all sell ready-to-eat chicken.
Ministop chicken product lineup. From the left: 'Spicy BBQ Chicken Drumstick', 'Spicy Jumbo Thigh', 'Jumbo Chicken Drumstick'
Ministop is also putting effort into product development. Starting with its first product, 'Jumbo Chicken,' it released representative items such as 'Jumbo Chicken Drumstick' and 'Spicy Jumbo Thigh.' Recently, it has focused on developing special parts like 'Fried Chicken Skin,' 'Fried Chicken Gizzard,' and 'Spicy Fried Chicken Skin.' These are popular as convenience store snacks that pair well with beer and as snacks for students. The spacious stores, averaging 25 pyeong (approximately 82.6 square meters) per location, are also an advantage.
As the convenience store industry increases one-person customized chicken products, it has also brought changes to existing chicken franchise companies. For example, 7-Eleven differentiated itself by partnering with the chicken specialty brand BBQ at the end of 2018 to launch single-serving chicken products. Competition between different industries has led to a positive outcome of diversified consumer choices.
However, Ministop, which maintains large and premium stores, is facing growth limitations. Ministop led the early revival of Korean convenience store culture by opening its first store in Mokdong, Seoul, in 1990, but it has now fallen to fifth place in the industry due to a significant lag in store numbers. Ministop operates about 2,600 stores, showing a gap of about 2,000 stores compared to Emart24, the fourth-largest convenience store chain with around 4,600 locations, which was a latecomer. Other companies are also focusing on securing large franchisees for differentiation, putting Ministop's strategy under threat.
A Ministop official said, "Ministop's chicken specializes in the drumstick part favored by Koreans, fried crispy into bite-sized pieces, which has gained popularity among single-person households and students who find buying a whole chicken burdensome." He added, "We have systematized existing chicken products under the brand 'Chicken First' and plan to increase the number of products." An industry insider commented, "From the beginning of its business, Ministop's in-store cooked food was a point of differentiation. Recently, as in-store cooked food has gained popularity in other convenience stores, it seems they have branded it as a key appeal point."
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