Franchising
Bonchon leaning into fast casual format
July 7, 2021
Thanks to a shift in operational initiatives, Bonchon, which has been serving Korean fried chicken in a casual dining environment since 2002, is outpacing most of the U.S. restaurant industry in growth and revenue.
Black Box Intelligence, a data firm, revealed this week that the South Korea-based chain not only grew its U.S. store count and same-store sales in 2020 but was also maintaining the momentum with positive 15.3% same-store sales as of June 26, 2021.
"Bonchon remains one of the fastest-growing restaurant brands in the United States thanks to the hard work and perseverance of our franchise partners and team members during a year of unprecedented industry challenges," Bonchon CEO Flynn Dekker said in a company press release. "Sales growth has steadily increased due to strategic enhancements in operations, supply chain and technological innovation. These strategic shifts have not only allowed Bonchon to build our revenue even further, but also to continue expanding our footprint with new openings across the U.S."
Dekker attributed the growth to "aggressive pivots into new technologies and streamlined operations," including a standardized POS system, the launch of online ordering, strong partnerships with third-party delivery companies and delivery integration through their proprietary online ordering channels in partnership with DoorDash Drive.
To support both new and existing franchisees, the company also added team members and field business consultants to provide training on operational best practices, customer service, food quality and menu strategy. These technology and operations investments have paid off, contributing to the company's 25.4% average 5-year annual unit growth rate, Dekker said.
A shift to fast casual
Earlier this year, Bonchon opened two company-operated fast casual-only prototypes in Addison, Texas, and Towson, Maryland. Franchise partners have been so impressed with the model that 72% of the 23 locations planned to open by the year's end will have the fast casual format. The chain, however, will also offer casual dining as well as non-traditional service models.
Bonchon has more than 110 U.S. restaurants and over 370 locations worldwide including Thailand, Philippines, Singapore, Cambodia, Myanmar and Vietnam.
