The Korean frontrunner is looking to take its successful fried chicken brand worldwide.
Kyochon F&B, the South Korean fried chicken franchise brand with over 1,200 domestic locations and more than 30 international restaurants, has big international plans to take its business model into several new markets with experienced franchisees, Korea JoongAng Daily reports.
Domestically, Kyochon F&B plans to increase its store numbers from 1,234 to 1,500 by the year 2025. Internationally, the goal is to open 500 stores in 25 countries over the next five years, with markets like the Middle East being targeted after the brand recently received halal certification for its sauces.
“We will actively expand businesses overseas,” said CEO, So Jin-se. “The initial public offering of our company is meaningful because we will be the first food franchise to trade on the Kospi [the Korean stock market]. Kyochon will put in the effort to grow into a global food manufacturing company.”
Kyochon F&B is the largest fried chicken franchise by market share in Korea, owning around 15 to 20 per cent of the $3.7bn chicken market in the country. The brand’s locations report average revenues of 34.9m won (roughly $30,880) per 35.5 square feet, which is the highest among chicken franchises in South Korea. Kyochon F&B also has the lowest closure rates of 0.2 per cent.
The franchise is also looking to develop its offering beyond fried chicken, to appeal to a wider variety of consumers. This includes concentrating on its sauce subsidiary, BHN Bio, and selling beer brewed directly by Kyochon.
“Fried chicken and beer is a widely loved pair. If the company launches its own beer brand, it can create synergy and a possible opportunity to rebrand the company,” said analyst Choi Jong-kyoung, Heungkuk Securities.
