SEOUL, December 28 (AJP) - The number of franchise fried chicken stores in South Korea has surpassed 30,000 for the first time, the National Data Agency said Sunday, driven by the expansion of major chains even as independent shops struggle to survive.
In South Korea, fried chicken is more than just fast food. It is a cultural staple comparable to pizza in the United States. The combination of chicken and beer, known locally as "chimaek," is a ritual for sporting events and social gatherings, evolving from a rare treat in the 1970s to the country's default comfort food.
This immense popularity has led to the country being jokingly dubbed the "Republic of Fried Chicken." Opening a franchise is a common path for retirees and former corporate workers seeking a second act, creating a market density so high that brands must constantly innovate with new sauces and flavors to compete.
According to the national statistical agency's "2024 Franchise Statistics Results," there were 31,397 franchise chicken stores operating nationwide as of the end of last year. This represents a 5.3 percent increase, or 1,592 locations, from the previous year.
The sector has seen steady growth, crossing the 25,000 mark in 2018 and adding approximately 1,000 new franchise locations annually over the past six years.
Competition at the top of the market remains fierce. BBQ reclaimed the number one spot last year with 2,316 stores, adding 67 new locations. It overtook bhc, which fell to second place with 2,228 stores after closing 48 locations. Kyochon Chicken followed in third with 1,361 stores, while Cheogajip Seasoned Chicken and Goobne Chicken rounded out the top five.
Despite the rise in store numbers, the industry faces signs of saturation. While total revenue for franchise chicken stores rose 7.3 percent to 8.7 trillion won ($6 billion), the average annual revenue per store grew only 1.9 percent to 279.6 million won.
The data also highlighted the small-scale nature of these businesses. The average number of employees per store dropped to 2.1, the lowest among all major food service franchises, indicating that most are family-run operations relying on minimal staff.
The increasing concentration of franchises reflects a shift in consumption patterns, as delivery apps drive demand toward recognizable brands over independent operators. However, the prevailing view in the sector is that the domestic market has effectively reached a saturation point, leaving little room for major players to continue expanding their footprint aggressively.
This saturation is evident in the broader market figures. When including non-franchise independent shops, the total number of chicken restaurants in South Korea has actually declined for three consecutive years, falling to 39,789 in 2023.
With domestic growth stalling, major chains are looking abroad. BBQ recently established a European headquarters in Spain and opened a drive-thru location in the United States. Competitors are following suit, with bhc expanding into Indonesia and Kyochon opening new outlets in China this year.
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