Kyochon Chicken Faces Backlash Over Portion Size Reduction, government Scrutiny
Seoul, South Korea – Kyochon F&B, Korea’s leading chicken franchise, is facing mounting criticism and potential government intervention following recent changes to its popular boneless chicken offering. The company reduced the weight of its boneless chicken from 700g to 500g and began incorporating both chicken thigh and breast meat, departing from its previous 100% thigh meat recipe.
The alterations have sparked consumer complaints, damaged brand image, and created friction with franchise owners, contributing to a significant decline in the company’s third-quarter performance. Operating profit and net profit both decreased amid a broader consumer downturn, rising raw material costs, and fewer users on delivery apps. The changes are being viewed as a case of “shrinkflation” – reducing product size while maintaining price – and have drawn the attention of the Presidential office.
According to sources, the Presidential Office has directed measures to prevent such practices, stating, “We need to reduce weight and put the brakes on changes in raw materials.” This directive signals potential government oversight of Kyochon’s business operations, impacting raw material procurement, product production, quality control, and pricing policies.
Kyochon F&B, listed on the KOSPI exchange (339770), currently trades at 4,285 KRW as of 3:30 PM KST on october 16th, representing a 0.92% decrease. Analysts suggest the controversy surrounding portion sizes is a key factor that could affect the brand’s long-term reputation and market share relative to competitors.
