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| A customer orders fried chicken at a CU store in Seoul, Feb. 9. Courtesy of BGF Retail |
By Kim Jae-heun
Convenience store chains have entered the ongoing fried chicken price war, which was triggered by large retail stores as they try to attract more customers by undercutting fried chicken franchise restaurants with low prices, according to company officials, Friday.
They are selling fried chicken at half the price of franchises and offering "two for one" promotions. Fried chicken is not only good for attracting customers, but it also increases sales of other products such as alcoholic beverages and lunchboxes.
The country's largest convenience store brand CU, operated by BGF Retail, became the first firm to offer one extra fried chicken meal for free when customers buy two. The company decided to do so after its fried chicken sales soared year-on-year by 78.9 percent between Aug. 1 and 26. CU's fried chicken is sold for 10,900 won ($8.03) at all of its stores across the country.
"We planned a Plus One event reflecting our customers' interest in fried chicken. We are reviewing whether to continue this promotion until next month too," a BGF Retail official said.
GS Retail's convenience store brand GS25 is offering five different kinds of fried chicken, with prices varying from 7,900 won to 11,000 won. GS25 has been expanding its fried chicken products this year as part of its plan to strengthen food sales.
"Our fried chicken sales in July increased by 45.2 percent compared to July last year. We are also carrying out a 'two for one' promotion on selected chicken items for a month to thank our customers," a GS Retail official said.
Other convenience stores firms like 7-Eleven and Emart24 have come up with their own marketing strategies for fried chicken. Emart24 has introduced 14 kinds of oven-baked chicken, and 7-Eleven is selling its own brand of fried chicken for 9,900 won. It is available at 4,000 stores across the nation currently.
Chicken is a great marketing strategy for convenience stores, as their main customers are in their 20s and 30s. They don't have to wait for food delivery and can just pick it up at the store. Also, customers can buy smaller amounts at lower prices too.
However, convenience store fried chicken has its downsides too. It is not cooked at the stores, so the quality and taste fall behind what's sold by franchise restaurants and large retail stores.
"Local convenience stores are introducing their fried chicken items, but the sales volume is not as big compared to other retailers. Consumers' recognition of convenience stores' fried chicken is improving too as the companies take care to improve the food quality," a local retail official said.
