Kyochon Yangnyeom Chicken and Kyochon Fried Chicken. (Photo provided by Kyochon F&B)
SEOUL, Sept. 2 (Korea Bizwire) — Kyochon Chicken, one of South Korea’s largest fried chicken chains, has begun allowing franchise owners to set their own menu prices on delivery apps, joining a move pioneered earlier this year by rival bhc.
The shift, described as a “self-determined pricing system,” reflects mounting tensions between franchise headquarters and operators over rising costs and hefty delivery app fees.
According to industry officials on Monday, several Kyochon outlets in southern Gyeonggi Province raised prices on popular items such as the Honey Combo and Honey Boneless to 25,000 won ($18), about 2,000 won above the company’s official suggested retail price.
Fried and seasoned chicken were similarly marked up, and some stores reportedly lifted prices by as much as 3,000 won despite company guidance to keep increases within 1,000 to 2,000 won per item.
The changes apply only to third-party delivery platforms like Baemin and Coupang Eats, not to in-store purchases or orders through Kyochon’s own app.
Franchisees argue the restriction undermines the very idea of pricing autonomy, noting that supply disruptions and falling profitability — including fewer chicken legs per combo meal due to shortages — are already squeezing margins.
Flexible pricing is gaining traction across the franchise sector. McDonald’s, Mom’s Touch, Lotteria, Ediya Coffee and Bonjuk have all adopted delivery app–specific price adjustments.
Analysts say the approach is an expedient way for franchisors to placate franchisees frustrated by platform commissions without directly confronting delivery companies.
With more than 380 chicken brands operating under franchise models nationwide, industry observers are watching closely to see whether Kyochon’s experiment signals a broader shift in South Korea’s fiercely competitive fried chicken market.
Ashley Song (ashley@koreabizwire.com)
