Fried Chicken Franchises Expand at Home While Looking Abroad for Growth (Image courtesy of Yonhap)
SEOUL, Dec. 29 (Korea Bizwire) — South Korea’s fried chicken industry has crossed a symbolic threshold, with the number of franchise outlets nationwide surpassing 30,000 for the first time, even as signs of market saturation intensify and growth prospects dim at home.
According to the National Data Policy Agency’s 2024 Franchise Statistics released on December 28, the number of franchised chicken restaurants stood at 31,397 last year, up 5.3 percent from 29,805 a year earlier. The increase marks a rebound in store growth after expansion slowed steadily from 2021 through 2023.
Often dubbed a “fried chicken republic,” South Korea crossed the 25,000-franchise mark in 2018. Over the past six years, the total has risen by more than 6,000 outlets, growing by roughly 1,000 stores annually.
By brand, BBQ reclaimed the top spot with 2,316 outlets, overtaking bhc after a year, according to the Fair Trade Commission’s franchise disclosure system. bhc followed with 2,228 stores, down from the previous year, while Kyochon Chicken ranked third with 1,361 locations.
Other major players included Cheogatjip, Goobne, and several mid-sized brands. Overall, however, the number of chicken franchise brands declined to 647, down 22 from a year earlier, suggesting consolidation in an increasingly crowded market.
Sales figures show continued expansion but at a moderating pace. Total revenue at franchised chicken restaurants rose 7.3 percent to 8.78 trillion won in 2024, trailing growth in coffee, Korean food, and pizza and burger chains.
South Korea offers many types of chicken dishes. The photo shows yangnyeom chicken, known for its sweet yet savory flavor. (Yonhap)
Average sales per outlet increased just 1.9 percent to 279.6 million won, while employment fell 2.4 percent to about 65,000 workers nationwide. With an average of just 2.1 employees per store, chicken franchises employ fewer workers per outlet than any other major dining category, reflecting the prevalence of small, family-run operations.
Industry analysts warn that while franchise outlets continue to multiply, the broader chicken market is contracting. Including independent restaurants, the total number of chicken eateries nationwide fell for a third consecutive year to 39,789 in 2023, nearly 3,000 fewer than in 2020.
With domestic demand largely saturated and delivery apps reinforcing brand concentration, major chains are increasingly turning abroad for growth. BBQ has launched a European expansion, establishing a regional headquarters in Spain, opening its first U.S. drive-through store, and reentering China. bhc has moved into Indonesia, while Kyochon has continued expanding in China.
“The domestic chicken market has essentially reached its peak,” an industry official said. “For large brands, opening additional stores at home is becoming increasingly difficult.”
As competition intensifies and margins tighten, South Korea’s iconic fried chicken industry appears poised for a strategic pivot overseas, even as its footprint at home continues to swell.
Lina Jang (linajang@koreabizwire.com)
