As the dining-out industry struggles with high inflation and slowing consumption, chicken franchise companies are continuing to expand their top line. Analysts say demand has remained steady because chicken has established itself as a go-to item well-suited for delivery and takeout, and because it is a menu that several people can share.
According to the industry on the 18th, Dining Brands Group Co., which operates BHC Chicken, posted revenue of 614.7 billion won and operating profit of 164.5 billion won last year. Revenue rose 19.9% and operating profit 22.9% from a year earlier. This is the first time a domestic chicken franchise brand has surpassed 600 billion won in annual revenue.
BBQ also continued its top-line growth. Genesis BBQ recorded 527.8 billion won in revenue on a consolidation basis last year, up 4.3% from 506.1 billion won a year earlier. However, operating profit fell 19.4% to 69 billion won from 85.7 billion won a year earlier. Kyochon F&B, which operates Kyochon Chicken, posted 517.4 billion won in revenue, up 7.6% from 480.8 billion won a year earlier.
Mid-tier brands also kept up their growth momentum. Goobne Chicken recorded 239.5 billion won in revenue last year, and 60Chicken posted 158.6 billion won. Puradak came in at 136.4 billion won, Norang Tongdak at 133.5 billion won, and Cheogajip at 122.1 billion won, joining the ranks of 100-billion-won brands.
The growth of chicken franchises contrasts with the overall trend in dining out. According to the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corporation (aT) "2025 dining industry business conditions index comprehensive report," last year's dining industry sales index was 73.84, down 1.77 points from the previous year. When the index falls below 100, it means more businesses say their sales decreased than those who say sales increased from a year earlier.
High inflation is also adding to the dining-out burden. According to the Korea Consumer Agency (KCA) price information portal, Price Right, as of March, the average price of one serving of kalguksu in Seoul was 10,038 won, topping 10,000 won for the first time. Naengmyeon averaged 12,538 won, bibimbap 11,615 won, and samgyetang 18,154 won, pushing many major dining-out items into the 10,000-won range.
In this environment, chicken is considered relatively defensive. While a whole chicken is not necessarily cheap on a per-item basis, the perceived cost is lower because two to three people can share it. It also suits various consumption scenarios such as family meals, late-night snacks, sports viewing, and office gatherings.
An industry official said, "As dining-out costs rise, consumers tend to choose items whose taste and quality they already know rather than try new ones, and chicken franchises appear to have captured that demand." In other words, familiar brand items with a low risk of disappointment can actually be an advantage.
Chicken is also competitive in the delivery dining market. Unlike noodles or soups, its quality is relatively less degraded in transit, and it can cover dine-in, delivery, and takeout. With standardized cooking methods and materials and supplies, quality gaps between stores are relatively small.
◇ Cost pressures keep building
Major brands are continuously drawing consumer interest with new items. Following its hit "Bburinkle," BHC introduced "Kwasak King" and "Sweet Chili King" last year, boosting sales. Kwasak King sold a cumulative 7 million units in about a year after launch, while Sweet Chili King surpassed 1 million in cumulative sales three months after launch.
An industry official said, "New-item strategies at chicken franchises do more than expand menus; they work to strengthen each brand's identity," adding, "Recently, consumption has segmented in ways that consider sauces, cooking methods, packaging images, side items, and even the brand experience."
The rise in foreign tourists is also a positive factor for chicken franchises. According to the Korea Tourism Organization (KTO), inbound foreign visitors totaled 18.94 million last year, surpassing the 2019 level before COVID-19.
Korean-style chicken is well known among overseas consumers. According to the Korea Food Promotion Institute (KFPI) "2025 overseas Korean food consumer survey," the most frequently eaten Korean food by overseas consumers in the past year was Korean-style chicken at 28.3%, ranking first. For Korean foods they intend to eat in the future, Korean-style chicken also had the highest response rate at 22.6%.
However, the growth of chicken franchises does not automatically translate into improved profitability. That is because the costs of chicken, cooking oil, packaging, labor, and delivery commissions are rising.
An industry official said, "Demand in the chicken market remains solid, but cost pressures are steadily increasing," adding, "This year, results will likely hinge more on how efficiently companies manage materials and supplies prices, delivery commissions, and labor costs than on sheer sales scale."