Several major chicken franchise chains in South Korea are ramping up incentives for customers to use their proprietary ordering platforms. (Image courtesy of bhc Chicken)
SEOUL, Oct. 11 (Korea Bizwire) – As restaurant owners’ frustrations grow over high commission fees charged by food delivery apps, several major chicken franchise chains in South Korea are ramping up incentives for customers to use their proprietary ordering platforms.
According to industry sources on October 10, the country’s top three chicken franchises — BBQ, bhc Chicken, and Kyochon Chicken — along with some smaller chains, are offering significant perks to customers who place orders through their own apps. These benefits include free chicken or discounts on orders.
BBQ, a leading player in the market, is running a promotion until October 31 where customers ordering more than 25,000 won through the BBQ app receive half of a Golden Olive Chicken order, the chain’s signature dish, for free.
The company reported that during a similar promotion last month, average daily sales increased by 250% compared to the previous month, while new app registrations quadrupled year-over-year.
Not to be outdone, bhc Chicken is celebrating the 10th anniversary of its popular “Bburinkle” chicken by offering it at its original price of 17,000 won when ordered through the company’s app, a significant discount from current prices. This promotion also runs until October 31.
Kyochon Chicken is taking a different approach, offering 4,000 points (equivalent to cash in their system) for the next order when customers try their new Corn Chicken through the company’s app.
Smaller chains are also joining the trend. Cheogajip Yangnyeom Chicken offers a 5,000 won discount on first orders through their app, with additional weekly promotions. Nene Chicken is running a weekly lottery for app users, while Mexicana provides a 5,000 won discount coupon for new app registrants.
These moves come as franchise owners increasingly demand support from their parent companies to offset the rising costs associated with third-party delivery platforms.
“We’re experimenting with various strategies to address the growing concerns of our franchisees about the increasing fees charged by delivery apps,” an industry insider explained.
Ashley Song (ashley@koreabizwire.com)
