South Korea’s chicken franchise market is increasingly taking on a “one leader, two challengers” structure centered on bhc. With bhc pulling further ahead on sales, BBQ and Kyochon Chicken are locked in a close fight for second place.
As of April 23, industry officials said Dining Brands Group, which operates bhc, posted 614.7 billion won in standalone sales last year, becoming the first in the sector to surpass 600 billion won in annual revenue. Sales rose 19.9% from 512.7 billion won a year earlier, while operating profit increased 23% to 164.5 billion won.
The company’s momentum has been driven by successful new menu items. “Quasak King,” launched last year, topped 7 million in cumulative sales in about a year, matching the popularity of its signature “Bburinkle.” “Sweet Chili King” also exceeded 1 million units within three months of launch. bhc also benefited from maintaining a stable supply system for fresh and cut chicken despite external supply uncertainty, supporting franchisee profitability.
BBQ, which had long competed with bhc for the top spot, saw growth slow and the gap widen again. In 2024, BBQ narrowed the sales gap to 6.6 billion won and aimed to reclaim No. 1, but last year its sales rose just 4.3% to 527.8 billion won. Operating profit fell 19.4% to 69.0 billion won. The sales gap with bhc expanded to about 86.9 billion won.
BBQ said the results reflected upfront spending tied to its 30th anniversary marketing, overseas expansion and logistics infrastructure. BBQ now operates about 700 stores in 57 countries, including the United States, and is focusing on strengthening its competitiveness abroad.
Kyochon Chicken, in third place, rebounded and closed in on BBQ. Kyochon F&B posted 517.4 billion won in sales last year, up 7.6% from a year earlier, returning to the 500 billion won range for the first time in three years. Operating profit jumped 126.2% to 34.9 billion won. The sales gap with second-place BBQ narrowed to about 10.4 billion won from 22.4 billion won in 2024.
Kyochon attributed the improvement to new products such as Mala Red, growth in subscribers to its app, and stronger demand tied to rising interest in professional sports. Industry watchers said the key storyline this year is likely to be the battle between BBQ and Kyochon for No. 2, rather than a fight for the top spot.
Each company is refining its strategy. bhc is maintaining a plan to launch two new products a year, introduced “Soy Garlic King” in March, and is focusing on efficiency by deploying its automated frying robot, “T-bot.” BBQ is emphasizing “execution and results,” pursuing AI-centered management innovation and strengthening its global strategy with the United States, Europe and China as key hubs. Kyochon plans to bolster growth by developing new menu items and expanding new businesses such as sauces and craft beer.
An industry official said, “With uncertainties growing at home and abroad — including rising raw material prices and intensifying competition in the delivery market — marketing and new-product competition is likely to become even fiercer.”
* This article has been translated by AI.
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