Dive Brief:
- Bonchon announced earlier this month that it would open two franchised ghost kitchens locations this fall, one in Washington, D.C., and one in Richmond, Virginia.
- The Korean fried chicken chain also is opening two non-traditional locations, one in New York and one in Pennsylvania, to showcase “Bonchon’s natural fit in a mall or food hall setting.”
- Bonchon has looked to build up its U.S. system, which is currently 125 units, ultimately hoping to double it within about 5 years. Its small ghost kitchen units could help it speed up development.
Dive Insight:
Bonchon recently opened the door for franchisees to start up locations offering only pick up and delivery through small format restaurants, about 200 to 600 square feet. The format is considerably less expensive than a traditional storefront.
Ghost kitchens, called “remote kitchens” in the chain’s 2023-24 Franchise Disclosure document, cost between $202,557 to $369,312, and require up to 17 workers to operate. Meanwhile, stores can require investments up to $1.2 million and need between 14 and 49 workers to keep things running.
“Bonchon is constantly seeking to develop restaurant models that best support both our franchise partners and our guests,” Suzie Tsai, Bonchon’s chief growth officer in the U.S. said in the press release. “Through the ghost kitchen, we are able to leverage technology for greater flexibility, help alleviate labor challenges, and increase brand awareness.”
Bonchon’s system is primarily outside the U.S., with about 420 restaurants globally. The South Korean chain is concentrated primarily in Asia, with restaurants in Thailand, Philippines, Singapore, Cambodia, Myanmar, Vietnam and France. The small size, lower development costs and slimmer labor requirements for its remote kitchens could speed up development and unit growth in the U.S. market, with average unit volumes of about $1.68 million, according to the press release.
