More than 100 locations are now open in the U.S., each offering the brand’s signature double-frying and hand-brushing techniques alongside its savory proprietary sauces. We want to be in more high trafficked areas-office destinations, downtown areas and food halls.Bonchon is the unique and authentic Korean fried chicken franchise brand that is cooking up big success throughout America. As we open more express models in the future, we should be able to compete more. That would bring us close to 700 globally.Ĭhang: It’s not a direct threat because Bonchon is at a competitively different price point. How avoid the trap of growing too quickly?īalle: It goes back to evaluating new locations and choosing developers that can handle multiple locations.Ĭhang: We want to open as many locations as possible it increases brand awareness.Ĭhang: At this moment, we don’t have any plans.ĭescribe the key factors in Bonchon’s future growth.Ĭhang: 1) Adapting with technology, creating a digital-first strategy, making online order easier, 2) Building a strong brand loyalty, 3) Opening more express restaurants.Ĭhang: In the next five years, we’re looking to get to 300 to 400 stores in the U.S. You’re scheduled to open 36 new outlets in 2019. People get addicted to Bonchon and will pay a premium to get the best possible chicken. A consulting firm said we had 81% repeat business. What do you do to lure them back for a second meal?Ĭhang: We have data that shows we have an extremely high retention rate. We appeal to families and friends who come together to enjoy the atmosphere and come where we serve beer and wine. Li: The average check is $31 a person, but can include two people on the ticket. We see ourselves as an “unchain chain,” offering a more authentic experience. We see a trend that Applebee’s and Chili’s are declining. The main thing is millennials enjoy eating at restaurants that have less of a chain feel. We do social media advertising on Facebook, and third, we work with influencers to promote new locations.Ĭhang: Our core customer is 25-to-34 year old, middle-class to upper-middle-class millennials. When you open a new outlet, how do you market it and let people know about it?Ĭhang: First we’re lucky to get a decent amount of press whenever we open in a new location. We find them to being open to trying new cuisine, an important factor for us to choose where to open.ĭo you have private equity funding or are you self-financing expansion?Ĭhang: Typically we’re financed by franchisees. These are cities with many higher earners and a large millennial population. For example, we see strong growth in salad items such as salmon salad, tofu crispy chicken, avocado bowl and udon.Ĭhang: Bonchon does primarily well on the East and West coasts, but we’re spreading to newly developing cites, such as Denver, Minneapolis and Austin. How is that affecting your business?īelle: We see strong growth in our fried chicken sales, but we’re looking to offer more healthier items. However, 60% of our customers order a dish besides fried chicken, such as a side or Korean traditional dish.īut many Americans are moving away from fried foods. How much of your business is based on fried chicken sales?Ĭhang: The signature fried chicken dishes including wings, drumsticks and combos cause about 43% of sales. We offer excellent service, music, and an atmosphere with drinks that include draft beers and soju, traditional Korean rice liquor, which is like sake. We offer popcorn shrimp, fried zucchini and fried pickle only in the USĭescribe the atmosphere each Bonchon is trying to create?Ĭhang: We want to create a fun place for friends and family to gather around a meal. adapted for American tastes?īalle: Tacos are more popular here than in Asia, but our core menu of fried chicken, wings and fried rice is world-wide. We have a higher quality chicken than most chain franchises offer, and lastly, we double fry our chicken, which gives us the crisper outer layer.īalle: We’re also known for Korean traditional dishes including fried rice, bibimbap, rice bowl with vegetables and proteins and bulgogi, a thin-cut, marinated ribeye. We have a special technique to apply the sauce that no other chain uses. What makes Bonchon’s style of fried chicken distinctive?Ĭhang: The first is the signature proprietary sauce shipped over from Korea. We have a unique product and don’t have many competitors that come with our flavors. We’ve been lucky to have a loyal following, which has spread our brand through word of mouth to cities where there are no Bonchon’s. Describe the key factors in why Bonchon’s revenue spiked 35% last year.Ĭhang: First and foremost we’re opening a number of new franchise locations.
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