Genesis BBQ to fire up fryers in 8 Chinese cities with new deal

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Genesis BBQ to fire up fryers in 8 Chinese cities with new deal

Audio report: written by reporters, read by AI


Genesis BBQ CEO Yoon Hong-geun, sixth from right, and heads of Chinese partner firms pose for a photo at a ceremony for a master franchise deal at Genesis BBQ's headquarters in Songpa District, southern Seoul, on May 16. [GENESIS BBQ]

Genesis BBQ CEO Yoon Hong-geun, sixth from right, and heads of Chinese partner firms pose for a photo at a ceremony for a master franchise deal at Genesis BBQ's headquarters in Songpa District, southern Seoul, on May 16. [GENESIS BBQ]



Chimaek (chicken and beer) by the Jin River in Chengdu, China, anyone?
 
Korean franchise Genesis BBQ is launching new bb.q Chicken branches in eight major Chinese cities this year, aiming to push into the world's second-most populous market.
 

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The company signed master franchise agreements with local partners on Friday to launch new bb.q Chicken stores in Beijing, Qingdao, Jinan, Shenzhen, Xiamen, Wuhan, Xi'an and Chengdu by the end of this year, according to Genesis BBQ on Tuesday.
 
Each partner will hold exclusive rights to operate bb.q Chicken in their respective cities and will begin recruiting franchisees after completing operational training led by Genesis BBQ headquarters.
 
The Chengdu location is expected to open first sometime in June, according to a company spokesperson.
 
This marks the company's second attempt to gain a foothold in China. Genesis BBQ entered the market with a store in Shanghai in 2003, and had operated over 150 branches in the country at its height. 
 
But sales dwindled following strained diplomatic relations between China and Korea from around 2016 due to Seoul's deployment of the Terminal High Altitude Area Defense, or Thaad, missile defense system, according to its spokesperson. The franchise had pulled many of its bb.q branches and currently only operates a handful in the country, with one also located in Hong Kong.
 
To increase its chances of success this time, Genesis BBQ said it has tailored menu items to suit Chinese tastes, using local ingredients and spicy sauces. The firm said it also collected data on Chinese consumers’ spending habits, dining out culture and market structure to ensure a successful breakthrough.
 
The franchise aims to open more than 1,000 stores nationwide in China. Genesis BBQ said the country’s market for delivery food — which the firm had failed to tap into during its first attempt, according to industry watchers — had rapidly grown since the Covid-19 pandemic.
 
Genesis BBQ’s market research showed that China’s dining out market was worth 5 trillion yuan ($3.6 billion) last year, with annual growth predicted to average over 10 percent. The company targeted eight Chinese cities with the highest income, with average household incomes in those regions averaging between 15,000 to 19,000 yuan a month in 2023.
 
A spokesperson for BBQ said the franchise has high expectations for the brand to expand further in China as its partners possess business expertise built over many years.
 
"Through this agreement — which is rare in scale for a single franchise brand — we aim to establish a stable and sustainable franchise model in China,” a BBQ spokesperson said. " We plan to grow into a global franchise leader by solidifying our position as a leading K-food brand in a country of 1.4 billion people.”

BY KIM JU-YEON [[email protected]]
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