Kyochon F&B, Galadari tie-up brings Korean fried chicken to Middle East

Kyochon F&B signs a master franchise agreement with Galadari Brothers Group (From left: Mohammed Galadari, So Jin-se, Suhail Galadari / Courtesy of Kyochon F&B)
Kyochon F&B signs a master franchise agreement with Galadari Brothers Group (From left: Mohammed Galadari, So Jin-se, Suhail Galadari / Courtesy of Kyochon F&B)
Sul-li Jun 2
2021-04-12 19:58:08 sljun@hankyung.com
Franchise industry


South Korea's No. 1 fried chicken brand Kyochon F&B has inked a master franchise agreement with Dubai-based franchise operator Galadari Brothers Group as part of its global expansion plans announced last year, the company said on Apr. 12.

Following the agreement, Kyochon F&B will set up its first franchise outlet in Dubai and eventually open around 100 franchise outlets across nine regions in the Middle East, including Saudi Arabia, Qatar, Lebanon and Jordan, over the next five years.

A master franchise agreement is when a master franchisor provides its branding rights, recipes and business know-how to an overseas master franchisee. In this case, Kyochon F&B would be the master franchisor while Galadari Brothers would be the master franchisee overseeing Kyochon's franchise activities in the Middle East.

Galadari Brothers Group is a seasoned franchise operator, having managed a global ice cream franchise brand for 40 years with over 1,000 franchise outlets across various regions in the Middle East. 

“Chicken consumption is high in the Middle East and there is also great interest in hallyu, or the Korean Wave," said Kyochon F&B Chairman So Jin-se. According to So, Kyochon aspires to be the country's leading fried chicken brand representing Korea via its offering of unique menu items, such as its signature soy sauce and honey-flavored fried chicken.

Kyochon F&B unveils a new flavor: Kyochon Cheese Truffle chicken
Kyochon F&B unveils a new flavor: Kyochon Cheese Truffle chicken

Kyochon F&B set out extensive global expansion plans last year, aiming to increase the number of its overseas outlets by more than tenfold by 2025 alongside branching out into the craft beer, seasoning and pet food markets.

Currently, the company operates around 47 franchises across six countries, including the US, China, Malaysia and Indonesia.

Since 2014, Kyochon F&B has held its position as the No. 1 fried chicken franchise in Korea with around 1,234 outlets. But the company has been pushing to become a global brand, given the oversaturation of the fried chicken market at home.

The company reported all-time high earnings last year, with its franchise restaurant outlets pulling in total sales of over 1 trillion won ($889 million). Kyochon F&B's headquarters reported 447.6 billion won in revenue, up by 18% from the previous year. Its operating profit also climbed by 4% to 41 billion won. Further, it marked a successful trading debut last year, shares opening at nearly double their offering price.


Write to Sul-li Jun at sljun@hankyung.com
Danbee Lee edited this article.
#kyochon #koreanfriedchicken #overseasexpansion

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