Kyochon F&B achieves record sales

Kyochon F&B's menu is seen on the screen of a mobile phone in this 2019 file photo. / Korea times file

Chicken restaurant franchise plans to expand overseas

By Kim Jae-heun

Kyochon F&B, the country's largest fried chicken restaurant chain, has achieved all-time-high sales surpassing 1 trillion won thanks to the COVID-19 pandemic, which has forced people to stay home and order food online.

The chicken chain also built additional distribution centers in accordance with the increasing demand for chicken orders across the country.

Kyochon F&B announced that its annual sales, combining those of all its franchises, came to about 1.3 trillion won. If only counting the revenue created by restaurants directly managed from the headquarters, it hit 447.6 billion won, which is also an all-time high in the company's history.

The fried chicken chain's operating profit increased by 4 percent rising to 41 billion won. Its profit in the second half of last year, in particular, skyrocketed by 68 percent to record 25.7 billion won, compared to 15.3 billion won, which it made in the first half.

One notable achievement is that only one franchise restaurant out of its 1,269 in the country closed in 2020. Franchise sales have soared by 14 percent year-on-year. The headquarters explained that this rise is due to the increased number of people ordering chicken at home amid social distancing measures.

Kyochon F&C has been delaying its plans to expand its global business because of the pandemic. Still, it managed to record 12 billion won in sales abroad. It currently operates 42 fried chicken restaurants in six countries, and it plans to advance into nine more countries, including Singapore as well as countries in the Middle East and Africa.

Kyochon F&B believes that this year will create the momentum for the company to develop in the global scene.

“This year marks the 30th anniversary of the company's founding. It is time for Kyochon to make its stronger presence on the international market. We will do our best to realize our vision of becoming a global food company by seeking new growth engines and strengthening our competitiveness through expanding infrastructure,” Kyochon F&B CEO So Jin-se said.

Meanwhile, the chicken restaurant chain plans to complete construction of new distribution centers in Pyeongtaek, Gyeonggi Province, and in Gimhae, South Gyeongsang Province, during the first half of this year. These new distribution centers will allow Kyochon F&B to handle 200 more tons of chicken on average on a daily basis, which is more than double the amount of previous years.