Baemin's Exclusive Deal with Cheogajip Draws 90% of Franchisees

Approximately 90% of Cheogajip Yangnyeom Chicken franchisees have agreed to participate in Baedal Minjok's (Baemin) relaunched "Baemin Only" program, sources confirmed. As rival Coupang Eats cuts commission fees to prevent store defections, a delivery app war over major franchise brands appears imminent.

According to industry sources on the 9th, about 1,100 franchisees have signed on to the Baemin Only promotion with Cheogajip Yangnyeom Chicken, which took effect the same day. This represents approximately 88% of Cheogajip's 1,254 franchise locations based on Fair Trade Commission data for 2024.

Woowa Brothers, Baemin's operator, and Korea 153, which runs Cheogajip Yangnyeom Chicken, signed a memorandum of understanding on the 28th of last month to strengthen strategic cooperation. The two parties agreed to implement Baemin Only, which offers benefits including reduced commission rates—from around 7% to 3.5%—for franchisees that do not use delivery platforms other than Baemin. The promotion runs as a pilot program through May and exceptionally permits use of public apps such as Ttangyeoyo.

On the first day of implementation, numerous Cheogajip Yangnyeom Chicken franchisees operating on the Baemin app were found to be unavailable on Coupang Eats. One store in Seongnam, Gyeonggi Province, was available for orders on Baemin but displayed "Preparing" status on Coupang Eats. Since the promotion is temporary and participation can be reversed, franchisees that suspended rather than terminated their Coupang Eats accounts still appear in searches even while participating in Baemin Only.

Coupang Eats has responded with various incentives to prevent franchisee defections. An industry source said, "Coupang Eats has offered some franchisees in Seoul and the metropolitan area the same 3.5% commission rate as Baemin Only."

The restaurant industry expects franchise headquarters and individual stores to benefit from delivery app competition for major franchise brands triggered by Baemin Only. However, critics warn that in a market effectively split between two players, forcing an either-or choice could ultimately hurt franchisee sales. A franchise industry official said, "Delivery apps have only focused on onboarding businesses and made no effort to support them afterward. We're watching to see how the delivery app industry responds following this Baemin Only launch."