Actively Pursuing Collaborations with Major Franchises
BBQ Launches Single-Serving Chicken on Baemin's "Hangureut"
Strategic Partnership with Kyochon Chicken Focused on the Baemin Platform
On June 27, Baemin announced that, starting today, customers can order single-serving menu items from BBQ, the largest chicken franchise in Korea. BBQ has joined Baemin’s single-serving category, "Hangureut," which was launched at the end of April, and will offer set menus designed for individual portions. This means that BBQ’s single-serving chicken menu is now available exclusively on Baemin. Previously, due to the nature of chicken being sold mainly as whole birds, it was difficult to order just one serving.
Baemin has decided to subsidize part of the delivery fee and menu discount costs for these items. When an order is placed, BBQ franchisees will also receive support for the platform’s commission fees. This follows a recent agreement, mediated by the Democratic Party’s "Committee for Protecting the Underdog," between Baemin and franchisee organizations to exempt commission fees and support delivery fees for orders under 10,000 KRW, and to provide tiered commission support for orders between 10,000 and 15,000 KRW. Only menu items priced between 5,000 and 12,000 KRW can be registered in the Hangureut category, and there is no minimum order requirement.
Baemin is also pursuing a strategic partnership with Kyochon F&B, the operator of Kyochon Chicken, centered around the Baemin platform. This agreement reportedly includes joint promotions to boost online sales for Kyochon Chicken franchisees, enhanced customer benefits, and measures to ease the burden on franchise owners. The key point is that franchisees will be able to choose to lower their Baemin commission fees. Depending on the choice of each Kyochon Chicken franchisee, they may stop operating on Coupang Eats and instead focus on expanding their customer base on Baemin at a lower commission rate. There are no such restrictions for Yogiyo, the public delivery app Ttaenggyeoyo, or Kyochon Chicken’s own app.
Currently, merchants on Baemin and Coupang Eats pay a commission fee ranging from 2.0% to 7.8% depending on their delivery sales. Kyochon Chicken franchisees will be able to choose either to lower their commission fees on Baemin by ceasing operations on Coupang Eats, or to continue operating on both platforms at the existing commission rates. In addition to lowering commission fees, Baemin also plans to provide additional support to help Kyochon Chicken franchisees increase their sales.
Opinions on this strategy between Baemin and major franchises are divided. Some praise the collaboration model between the platform and franchises as a way to enhance mutual benefit and customer value. There are expectations that not only will franchisees see increased online sales, but that the resulting rise in customer traffic could also benefit other merchants on the platform by increasing their order volumes. An official from the restaurant industry commented, "If delivery apps and franchises form strategic partnerships, practical measures that directly benefit franchise owners could be considered."
On the other hand, there are concerns that this could limit consumer choice and put non-franchise small business owners at a competitive disadvantage. An industry insider stated, "There could be a race among platforms to sign exclusive contracts with large franchises, and if commission benefits are given only to franchises with strong marketing capabilities, the business environment for other small business owners on the platform could worsen."
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