Chicken franchise companies are focusing on growing their proprietary applications amid conflicts over delivery platform fees. They are conducting various promotions every month, such as discount coupons and giveaways. However, there are complaints among some consumers that the delivery fees are more expensive than those on delivery platforms, and the discounted menu items quickly sell out, making it difficult to reap the benefits.
According to related industry sources on the 9th, chicken franchise companies are continuing their proprietary app promotions this year, following last year. Kyochon Chicken is offering a 3,000 won discount coupon for orders of five types of original chicken and six types of boneless chicken for members of the Kyochon Chicken app. BHC is offering a 4,000 won discount on the 'Return of the King series' chicken for orders made through their app until the 17th.
There were several discount events last month as well. Kyochon Chicken offered a 50% discount on the Single series during the Lunar New Year holiday, while BHC provided a 4,000 won discount on items like Bburinkle and Machoking. BBQ held an event last month for customers born in the Year of the Snake, offering a 5,000 won discount on Golden Olive Chicken, and ranked the ordering frequency of customers within the app, giving away prizes such as 3 suwon in pure gold, iPads, and AirPods.
Last year, chicken companies also provided discount coupons or giveaways for orders made through their proprietary apps, effectively running ongoing discount events to increase customers ordering through their apps.
However, some consumers point out that there is not a significant price difference between the prices paid through delivery apps and the proprietary app discount events of chicken franchises.
The delivery fee for the proprietary app is around 2,000 to 5,000 won on weekdays in Seoul. In contrast, Platforms like Baedal Minjok and Coupang Eats offer free delivery for paid members or around 1,000 won. Even for those who are not paid members, there are often times when discount coupons are provided, making it cheaper to use the delivery platform.
Moreover, there are franchise locations that do not allow the application of event coupons from the proprietary app, and it is often the case that event menu items quickly go out of stock, making them difficult to order.
Among consumers, there are growing grumblings that 'franchise locations are deliberately displaying items as out of stock on their proprietary apps to avoid selling discounted menu items.' It has also been noted that while items cannot be ordered through proprietary apps, they are still openly sold through delivery apps.
In relation to this, the chicken franchise industry refutes this by stating that it is advantageous for franchise owners to use their proprietary apps, so there would be no reason to purposefully mark items as out of stock.
A representative from Kyochon Chicken noted, 'When customers order through delivery platforms, franchise owners must pay fees to the platform, but when orders are made through the proprietary app, there are no fees that franchise owners need to pay to the headquarters.' They added, 'Additionally, the difference caused by discount events is generally covered by the headquarters.'
A representative from BHC stated, 'There are times when items quickly go out of stock due to difficulties in obtaining materials and supplies.' They also mentioned, 'We plan to launch a new membership-based app in mid-February, and we will strive to offer more benefits to consumers.'