Sales Reach 167.8 Billion KRW and Operating Profit Hits 9.3 Billion KRW in the First Half
KFC's Operating Profit Surges by 40% in the First Half
KFC achieved its highest-ever semiannual performance in the first half of this year.
On August 5, KFC announced that its sales for the first half of this year reached approximately 167.8 billion KRW, marking an increase of about 19.2% compared to the same period last year. This is the highest figure ever recorded for a half-year period. Operating profit was around 9.3 billion KRW, and EBITDA reached approximately 14.1 billion KRW, representing increases of about 39.7% and 30.7% respectively compared to the first half of last year. Notably, average sales per same-store rose by 12.3%, and customer traffic increased by 9.2% year-on-year, setting new records for both daily sales and customer numbers.
KFC attributed this growth to enhanced product competitiveness, advanced marketing strategies, a customer-centric digital transformation, and innovations in the in-store experience.
KFC collaborated with Chef Choi Hyunseok to launch the chicken rice menu 'Kenchibap,' which received great response immediately after its release, leading to its conversion into a regular menu item. They also launched a derivative menu, Butter Garlic Rice. Photo by Choi Hyunseok.
KFC collaborated with Chef Choi Hyunseok to launch the 'Kenchibap' chicken rice menu, which received an enthusiastic response and was subsequently added as a permanent menu item. The company also introduced a derivative menu, Butter Garlic Rice. The recipe and advertising campaign were exported overseas, including to Mongolia and Taiwan, exactly as they were launched in Korea. Other menu items such as 'Upgrade Gravy Tower', 'Mashed Potato & Gravy', and 'Lunchicken Box' also received positive feedback, further strengthening product competitiveness.
Marketing strategies focused on tangible benefits for consumers also drove performance growth. Promotions such as chicken at 1,900 KRW, snack 'Chickteuki', Tender Bucket at 4,900 KRW, and TWOSDAYS, which reduced price barriers, helped attract more customers to the brand and increased both brand loyalty and satisfaction.
Continuous improvements in UI·UX and enhanced app benefits led to steady growth in app traffic and membership. By June, downloads of KFC’s own app reached a monthly average of 106,000, up 79% year-on-year, and new sign-ups nearly doubled to about 436,000, bringing the cumulative membership to 2.86 million. The member repurchase rate (as of April) was 56.4%, indicating that more than half of the members made repeat purchases. The purchase frequency among members (as of June) increased by about two times compared to the beginning of the year, reaching 7.36 times, demonstrating the effectiveness of KFC’s digital strategy.
In terms of store operations, KFC renovated and relocated aging stores in key commercial districts to improve accessibility, convenience, and operational efficiency. To further expand customer contact points, the company extended operating hours until 2 a.m. at 16 stores and significantly increased the number of 24-hour stores to a total of six. The franchise business has surpassed 18 locations in just over a year since its launch and continues to expand. In April, KFC produced its first multi-store franchisee, and by the end of the year, three more multi-store franchisees are expected to join the franchise business.
Shin Hosang, CEO of KFC Korea, stated, "By focusing on practical execution strategies to get closer to consumers, we have seen positive consumer responses translate into improved performance. In the second half of the year, we will further solidify KFC’s unique competitive edge by offering distinctive flavors and services that can only be experienced at KFC, along with consumer-centric execution."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
