Nearly half of franchise sales in Seoul come from food delivery platforms, with businesses paying as much as 24% in commission fees. (Image courtesy of Yonhap)
SEOUL,June 27 (Korea Bizwire) – Nearly half of franchise sales in Seoul come from food delivery platforms, with businesses paying as much as 24% in commission fees, a new city-led survey revealed, underscoring rising dependence on digital intermediaries and growing concerns over cost burdens for small business owners.
According to the Seoul Metropolitan Government’s first-ever sales data-based study released Thursday, delivery platforms accounted for 48.8% of total sales at 186 franchise outlets—including chicken, coffee, and burger chains—during the October 2023 to October 2024 period.
Combined with mobile gift certificates (7.9%), more than 56% of all revenue was linked to online platforms, highlighting franchisees’ deep reliance on digital sales channels.
Commission fees tied to delivery transactions averaged 24% in October 2024, up from 17.1% a year earlier. These fees included delivery charges (39.2%), intermediary commissions (30.8%), and advertising costs (19.7%), with ad spending rising amid intensifying competition for top listings on delivery apps.
In some cases, fees exceeded core operational costs. For instance, in the chicken sector, platform fees averaged 17.5% of total costs—surpassing labor expenses (15.2%)—and contributing to the lowest profit margin (6.5%) among the industries surveyed. Coffee and burger chains fared slightly better, with margins of 9.5% and 9.4%, respectively.
Delivery riders(CG) (Image courtesy of Yonhap)
The study also found that 42.5% of store owners shouldered the full burden of mobile gift certificate fees, which averaged 7.2%.
In response, the city plans to launch a “Delivery Platform Coexistence Index” in the second half of 2025 to monitor commission structures and platform practices. A 100-member monitoring group composed of franchisees will help provide real-time input from the field.
Additionally, the city is considering incentives for franchisors that share mobile voucher fees equally with store operators and will discuss policy reforms with the Fair Trade Commission.
“Digital platforms offer convenience and boost sales for small businesses, but the current fee structure is unsustainable,” said Kim Myung-sun, director of Seoul’s Fair Economy Division. “Our goal is to develop fairer policies backed by data and to ensure the long-term stability of franchise operators.”
Ashley Song (ashley@koreabizwire.com)
