Kyochon Chicken may wing its way to Baemin only in delivery app shake-up

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Kyochon Chicken may wing its way to Baemin only in delivery app shake-up

A Kyochon Chicken store in downtown Seoul is seen on Nov. 21, 2021. [NEWS1]

A Kyochon Chicken store in downtown Seoul is seen on Nov. 21, 2021. [NEWS1]

 
Kyochon Chicken may disappear from Coupang Eats as early as next month under a sweeping new exclusivity deal with rival delivery giant Baemin.
 
Kyochon F&B, which operates the popular chicken franchise, is set to sign an exclusive partnership with Woowa Brothers — the company behind Baedal Minjok, commonly referred to as Baemin — according to sources in the food delivery and franchise industries on Thursday. 
 

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Under the “Baemin Only” agreement, Kyochon Chicken will delist from Coupang Eats and instead be available only on Baemin, Yogiyo, the public delivery app Ddangy and the chicken brand’s own app.
 
Through this agreement, Kyochon F&B will receive a preferential reduction in intermediary commission fees for franchisees from Woowa Brothers. However, neither company has disclosed the exact discounted commission rate. 
 
Currently, franchise owners on Baemin and Coupang Eats pay commissions ranging from 2.0 to 7.8 percent of sales.
 
In addition to the commission cut, Woowa Brothers plans to launch promotional discount campaigns for Kyochon Chicken at its own expense to help boost franchises’ sales and ease consumer burden.
 
The two companies aim to start the Baemin Only agreement as early as next month and maintain the partnership for two to three years.
 
This marks the first time a delivery app platform has signed a preferential deal with a major franchise that includes an agreement to withdraw from a competing platform.
 
Industry analysts believe Woowa Brothers is attempting to strengthen its position in the delivery market against Coupang Eats by securing Kyochon Chicken — one of the most profitable franchise brands.
 
“With intensifying competition between Baemin and Coupang Eats, exclusive contracts with high-profile franchise brands are a foreseeable next step,” said an industry official. “Delivery platforms are likely to shift their competitive energy from offering free delivery and discounts to signing exclusive deals with major clients.”


Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HYEON YE-SEUL [[email protected]]
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