On the 20th, the operator of the chicken franchise BBQ, Genesis BBQ Group, announced that it has signed master franchise (hereinafter MF) agreements in 8 key regions of China.
According to Genesis BBQ Group, the group signed MF agreements in 8 key regions of China at its headquarters in Songpa-gu, Seoul, on the 16th. MF is a franchise business model that gives intermediate franchisees the right to sell store operation rights to prospective franchisees.
This appears to be a full-scale expansion to target China's dining market, valued at 1,000 trillion won. China, with a population of about 1.4 billion, is considered one of the largest domestic markets in the world alongside India. Among these, the dining market is estimated to be about 5 trillion yuan (approximately 1,000 trillion won) as of last year, with an annual growth rate exceeding 10%.
BBQ plans to initially target 8 strategic regions, including Beijing, the capital of China, as well as Qingdao, Jinan, Shenzhen, Xiamen, Wuhan, Xi'an, and Chengdu. These regions are centers of politics, economy, and tourism in China, with higher income levels compared to other regions.
Furthermore, BBQ has granted exclusive operational rights on a city basis to local dining franchise corporations with rich business experience and distribution networks. The corporations with regional agency authority will complete headquarters operational training and begin recruiting franchisees in their respective regions.
In particular, BBQ's explanation states that it will develop specific customized strategies reflecting the consumer characteristics, commercial structures, and cultural differences in each region. In addition, plans include ▲ developing menu collaborations based on spicy sauces suited to Chinese tastes and local ingredients ▲ applying the same manuals and training as the Korean headquarters ▲ implementing the Korean logistics system.
BBQ plans to open directly operated stores in each region starting in June in Chengdu, aiming to operate over 1,000 stores across China by the end of this year.
A BBQ representative noted, "Through this contract, which is of a rare scale for a single franchise brand, we will secure a foundation to establish a stable and sustainable franchise model in China."