The daily reality of chicken franchises. In 2025, when the combined sales of the top three headquarters exceeded 1.6 trillion won for the first time, the number of chicken franchises decreased for the first time according to the Fair Trade Commission.
An average of 2.1 employees per franchise, 41 million won in differential franchise fees, and up to 29.3% in delivery commissions define the reality of these kitchens. [Photo = Korea Business Review DB]
In April 2026, unprecedented news emerged from the chicken industry. BBQ declared that it would freeze chicken selling prices and franchise supply prices.
At a time when raw material costs such as poultry and frying oil as well as delivery platform commissions have all risen, the company stated that it would absorb the cost increases. Coming amid a trend where chicken price hikes were repeatedly treated as an industry norm, this decision itself served as a signal showing how sensitive the current chicken market has become.
Genesis BBQ announced in April 2026 that it would freeze chicken selling prices and franchise supply prices. It was decided that the headquarters would bear various cost increases, including major raw material costs such as poultry and frying oil, packaging and logistics costs, and delivery platform commissions. A BBQ official stated, "Even by current calculations, costs have risen by billions of won."
Behind this decision lies the industry's judgment that consumers have reached a tipping point where they will no longer accept price hikes. And the structural background that created that tipping point is confirmed by numbers.
Headquarters at All-Time Highs: FY 2025 Big Three Performance
The audit reports for the 2025 fiscal year, disclosed successively in March and April 2026, demonstrate the growth of chicken franchise headquarters. At least, that is what the sales figures show.
Dining Brands Group (bhc Chicken) recorded sales of 614.7 billion won on a separate financial statement basis for 2025. This is a 19.9% increase compared to the previous year, marking the first time a chicken franchise has surpassed 600 billion won in annual sales. bhc's growth was driven by its new menu strategy. 'Kwasakking', introduced in the first half of last year, recorded cumulative sales of 7 million units in about a year, and 'Sweet Chili King', launched in the second half, surpassed 1 million units in just three months, quickly establishing itself in the market.
Genesis BBQ's consolidated sales for 2025 stood at 527.8 billion won, up 4.3% year-on-year. However, operating profit decreased by 19.4% to 69.0 billion won, and net profit fell by 3.6% to 47.1 billion won. BBQ was the only company among the three to experience a decline in earnings. This means that while sales increased, profitability deteriorated. BBQ cited factors for the slowdown in profitability as rising logistics costs due to high exchange rates, higher fresh meat prices driven by highly pathogenic avian influenza, increased labor costs, and expanded marketing expenditures.
Kyochon F&B recorded the most dramatic rebound among the three companies. Kyochon F&B's consolidated sales for 2025 increased by 7.6% to 517.4 billion won, and operating profit surged by 126.2% to 34.9 billion won. The structure saw earnings bounce back sharply as the burden of one-off costs incurred during the conversion of franchise regional headquarters to direct management in the previous year dissipated in 2025.
bhc's operating profit margin stood at 26.8%, significantly higher than those of BBQ (16.9%) and Kyochon Chicken (6.8%), displaying a prominent difference in terms of profitability. Even within the same chicken franchise industry, headquarters profit structures vary considerably by brand. While bhc maintains high profit margins despite a relatively small number of franchises, BBQ expanded its sales through an outward-expansion strategy but incurred heavy cost burdens.
The combined sales of the three companies for the 2025 fiscal year reached 1.6599 trillion won, surpassing 1.6 trillion won for the first time. Judging solely by the figures, chicken franchise headquarters are growing.
Franchises in Negative Growth: FTC Announcement in April 2026
However, another statistic released around the same time points in a completely different direction.
The Fair Trade Commission (FTC) announced the '2025 Franchise Business Status' on April 12, 2026. In these statistics, the aggregation criteria for the number of franchises and average sales are based on the end of 2024. FTC statistics only tally franchises registered in the franchise headquarters information disclosure documents, and independent chicken restaurants are not included.
According to this announcement, the number of chicken franchises (as of the end of 2024) stood at 28,750, a 3.2% decrease from the previous year. In the same survey, Korean restaurants (43,882) increased by 6.1% and coffee shops (29,010) by 4.0%, making chicken the only category among major dining-out sectors to experience a decline in the number of franchises.
This marks the first time the number of chicken franchises has turned downward in FTC statistics. Franchise chicken stores had steadily increased every year since 2018. That growth momentum has halted and retreated for the first time, as confirmed based on the end of 2024 data.
In the same announcement, the average sales growth rate of chicken franchises was tallied at 5.2% year-on-year. This fell short of the overall dining-out sector average growth rate of 6.1% and was lower than pizza (8.7%), Korean food (8.3%), and coffee (8.3%) sectors. The fact that sales growth remains below the dining-out industry average while the number of franchises is decreasing implies that the market environment felt by individual franchises is far from favorable.
Regarding the profit-sharing structure between franchises and headquarters, the differential franchise fee metric draws attention. Differential franchise fees refer to the headquarters' supply margin, which is the difference between the actual cost of ingredients supplied by headquarters to franchises and the supply price paid by the franchises. In the same FTC announcement, the average differential franchise fee for dining-out franchises was highest in the chicken sector at 41 million won. This exceeds the overall dining-out sector average of 26 million won, and is higher than bakery (30 million won), coffee (26 million won), and pizza (24 million won).
Regarding this increase in differential franchise fees, the FTC evaluated that "the possibility of disputes arising from excessive collection of differential franchise fees still remains." Given that a significant portion of the structure driving headquarters sales growth is based on franchise supply margins, this provides a clue to understanding the simultaneous occurrence of headquarters growth and franchise negative growth. However, concluding a direct causal relationship between the two requires separate analysis.
The Share Taken by Delivery Apps: Seoul Metropolitan Government Announcement in December 2025
Another factor pressing down on franchise profit structures alongside headquarters differential franchise fees is delivery platform commissions.
On December 18, 2025, the Seoul Metropolitan Government released for the first time the evaluation results of the '2025 Delivery Platform Win-Win Index' targeting four major domestic delivery platforms (Baedal Minjok, Coupang Eats, Yogiyo, and Tッタnggyeo). This evaluation was based on empirical metrics analyzing six months of sales settlement data from 103 tenant merchants and a survey of 602 store owners.
Analysis results showed that the total commission-to-sales ratios by platform were A company at 29.3%, B company at 28.4%, C company at 28.1%, and D company at 16.9%. There are substantial differences in commission rates among platforms, and even within the same platform, there is variance depending on conditions and stores. It must be noted that these figures are based on a sample of 103 tenant merchants.
Approximately 95% of store owners responded that the commissions incurred when using delivery platforms are "burdensome." While platforms contribute to sales, efforts are still needed to alleviate the cost burden on small business owners.
In the Seoul Metropolitan Government survey, the proportion of sales through delivery platforms reached 60.5%, while dine-in sales accounted for only 23.7%. In a structure where over 60% of sales come from delivery apps, platform commissions are an essential rather than optional cost. When a commission rate of up to 29.3% is applied, roughly one-third of delivery sales flows out to the platform.
In particular, advertising costs under a click-based billing system tend to escalate excessively as competition for top exposure intensifies, prompting the Seoul Metropolitan Government to raise the necessity of reviewing a "cap on advertising fees."
The structure where stores must spend more on advertising to gain better visibility within the app, and where heavier spending by one triggers heavier spending by competitors, acts as a factor driving up costs across all franchises.
Dual Pricing Borne by Consumers: October–November 2025 Survey
The burden of delivery app commissions has also been partially passed on from franchises to consumers in the form of so-called 'dual pricing'.
The Korea National Council of Consumer Organizations stated that a comparative survey conducted in October 2025 between the recommended consumer prices on the homepages of seven chicken franchises (BHC, BBQ, Kyochon Chicken, Goobne Chicken, Nene Chicken, NeNe Chicken, and Pelicana Chicken) and their selling prices within delivery apps (Baedal Minjok) revealed price differences of about 2,000 won per chicken in some brands for delivery orders. This figure is based on the mode observed in some menus of the seven surveyed brands, with variations depending on the brand, menu, and timing.
The council explained, "Franchised chicken is at the center of this year's dining inflation controversy," adding that "actual consumer prices are rising through dual pricing—where prices are raised or set differently for in-store versus delivery under the pretext of delivery app commissions and rent—and shrinkflation."
The logic behind the formation of dual pricing is as follows. When the burden of delivery app commissions grows, franchises attempt to offset that burden by raising prices exclusively for delivery orders. When headquarters condone this or formalize it in the form of an "autonomous pricing system," consumers end up paying more money when ordering the exact same chicken for delivery. Consequently, a structure is created where the delivery app collects the commission, and the burden of the price hike is borne by the consumer.
Regarding such dual pricing, the council pointed out, "Suspicions are being raised that rather than practically sharing the cost burden of franchises, the burden is being passed on to consumers, thereby aggravating the burdens on franchises and consumers while maintaining and expanding headquarters profits." This is an interpretation and allegation raised by consumer organizations, and it remains a contentious issue with counterarguments existing from headquarters.
A Single Picture Painted by Four Numbers
When four pieces of latest data verifiable as of April 2026 are placed side by side, a single structure comes into view.
Combined sales of the Big Three headquarters exceeded 1.6 trillion won for the first time based on the 2025 fiscal year. At the same time, the number of chicken franchises according to the FTC decreased for the first time. Delivery app commission rates climbed up to 29.3% depending on the platform (based on the Seoul Metropolitan Government's December 2025 survey). Ordering chicken via delivery costs about 2,000 won more per chicken than buying it at the store.
These four numbers were measured by different institutions, at different times, and using different methods. However, the very fact that these numbers coexist hints at where the profit flows of the current chicken industry are heading. A structure where headquarters sales and franchise numbers move in opposite directions, with delivery platforms positioned in between, while consumers pay dual prices.
BBQ's price freeze declaration in April 2026 is a decision born within this structure. A judgment that consumer resistance has reached its limit, the necessity to manage relations with franchise owners, and a strategy to differentiate from competitors likely acted in combination. However, how sustainable the declaration that "headquarters will absorb cost increases" will actually be remains a matter to be confirmed through subsequent earnings.
In the second half of 2026, some of these four numbers are scheduled to be updated. The Big Three's Q1 2026 earnings, the Seoul Metropolitan Government's release of the second delivery platform win-win index, and the FTC's next franchise business status tally will emerge sequentially. Whether those numbers point in the same direction as now or send a different signal will determine the next phase of this industry.