Three Chicken Companies Achieve Record High Performance... "Smiled Amid COVID-19"

[Asia Economy Reporter Moon Hyewon] The domestic chicken franchise "Big 3" posted record-high performance last year. It is analyzed that the delivery boom due to the prolonged COVID-19 pandemic had a significant impact. According to the industry on the 15th, the combined sales of the three companies?Kyochon Chicken, bhc Chicken, and Genesis BBQ?reached 1.333 trillion KRW last year, an increase of 12.7% compared to the previous year.

Kyochon Chicken recorded sales of 439.5 billion KRW last year, up 13.2% from the previous year. Operating profit decreased by 2.2% to 27.9 billion KRW. bhc Chicken's sales increased by 19.2% to 477.1 billion KRW, and operating profit rose by 18.3% to 153.8 billion KRW. Genesis BBQ's sales also grew by 19.2% to 362.4 billion KRW last year, with operating profit increasing by 14.5% to 60.8 billion KRW.

According to the Fair Trade Commission, the average sales of chicken franchise stores increased by 8.4% compared to the previous year. Unlike other dining sectors that were hit by social distancing policies, chicken franchises, which focus on delivery, benefited from COVID-19.

Over the past decade, the three companies have maintained a three-strong structure in the domestic chicken franchise industry, fiercely competing. Since 2015, Kyochon has held the top spot in sales, followed by bhc in second place and BBQ in third. The sales gap between bhc Chicken and Kyochon Chicken narrowed to 16.4 billion KRW, less than half of last year's 40 billion KRW, signaling a fierce competition for first and second place this year.

With signs that COVID-19 is transitioning to an endemic this year and social distancing guidelines being lifted, the chicken industry is expected to maintain its growth trend. An industry insider said, "With the 'With Corona' policy, in-store dining demand will increase, and as foreign tourists increase, chicken industry sales are expected to rise together."

The three companies are actively expanding into overseas markets while also focusing on business diversification. Kyochon plans to open its first store in Honolulu, Hawaii, within the year and is actively promoting franchise business in the United States. Currently, it operates about 70 stores in six countries, including the U.S., China, and the United Arab Emirates (UAE). Last year, it entered the craft beer market by acquiring 'Moon Bear Brewing.'

bhc Group, which owns bhc Chicken, acquired Outback Steakhouse last year and plans to enter the burger franchise business. In June, it will introduce the famous American burger brand 'Super Duper' and is preparing to launch a burger specialty store based on Outback.

BBQ, which has about 250 stores in North America, is accelerating its U.S. market expansion. BBQ Chairman Yoon Hong-geun recently expressed in an interview with a media outlet his ambition to grow the global number of stores to 50,000.