Baemin-Only Franchise Partners See Sales Double

Franchisees of Cheogajip Yangnyeom Chicken participating in the "Baemin-Only" program with Baedal Minjok (Baemin) have seen their sales more than double, according to data released Wednesday.

The sales surge came despite franchisees discontinuing use of rival delivery apps such as Coupang Eats and Yogiyo. Industry observers attribute the gains to Baemin's aggressive marketing, including high-value discount coupons.

According to Korea 153, which operates Cheogajip Yangnyeom Chicken, participating franchisees recorded a 109% year-over-year increase in average daily sales from February 9-28. Compared to January this year, sales rose 116% during the same period.

The analysis covered 284 franchisees that joined Baemin-Only and operated for at least 10 days. These were drawn from approximately 400 stores using the franchisor's POS systems, which track total sales across dine-in and delivery channels.

"The mutual cooperation agreement with Baemin has demonstrably increased franchisee revenue through overall sales growth," a Korea 153 spokesperson said. "This was the primary objective behind launching the partnership with Baedal Minjok."

The spokesperson added that delivery app commission rates dropped from 7.8% to 3.5%, further boosting franchisee profitability.

Industry observers credit the marketing strategy for driving results. "In the past, customers decided what to eat first, then called restaurants to order. Since delivery apps emerged, consumers now browse various restaurants on the app before deciding," a food service industry official said. "Cheogajip benefited from prime placement on Baemin's main screen and offering higher discount coupons than competitors."

While most chicken brands offer coupons worth around 4,000 won, Cheogajip Yangnyeom Chicken provided discounts up to 16,000 won through Baemin.

Woowa Brothers, Baemin's operator, and Korea 153 signed a memorandum of understanding in January to strengthen strategic cooperation. The Baemin-Only promotion launched February 9 and runs through May as a pilot program. It offers significantly reduced commission rates to Cheogajip franchisees that exclusively use Baemin, with exceptions for public apps such as Ttanggyeoyo.

On February 20, law firm YK filed a complaint with the Fair Trade Commission on behalf of the Cheogajip Yangnyeom Chicken Franchisee Association, representing approximately 30 franchise owners. YK alleged the MOU between Baemin and Korea 153 constitutes unfair trade practices, including abuse of market dominance, exclusive dealing arrangements, and deceptive commission settlement methods.