Information on the target
BDA Partners is pleased to announce that its client, VIG Partners, has agreed to sell Bonchon International, a leading global Korean fried chicken franchise, to Minor Food (“MF”), a subsidiary of Minor International, and its strategic partner Serruya Private Equity (“SPE”). The transaction is expected to close within August 2026. BDA Partners acted as financial advisor to VIG Partners and Bonchon, with Kim & Chang serving as legal counsel.
Bonchon is one of the most recognized Korean food brands globally. Starting from a single restaurant in Busan, Korea in 2002, and making its US debut in 2006, Bonchon has expanded into a global franchise platform with over 500 restaurants across various countries, including the US, Thailand, the Philippines, Vietnam, Myanmar, Taiwan, Laos, Cambodia, and Malaysia. The brand is celebrated for its signature “double-fried” Korean fried chicken and proprietary sauces, operating a scalable franchise model that generates durable, recurring income through royalty fees and sauce sales. Additionally, Bonchon owns and operates its own sauce production facility.
Industry overview in the target’s specific country
The Food Retail & Distribution (NEC) industry in South Korea is characterized by a dynamic and competitive landscape, driven by changing consumer preferences and a growing demand for diverse food options. The rise of health-conscious consumers has led to an increased focus on quality and authenticity, particularly in the fast-casual dining segment, where brands like Bonchon thrive. The Korean food retail market has seen significant growth, fueled by the global popularity of Korean cuisine, which has been further amplified by the Korean Wave (Hallyu) and the increasing influence of social media.
In recent years, the South Korean food retail sector has experienced a shift towards online and delivery services, particularly accelerated by the COVID-19 pandemic. This trend has prompted many food retailers to enhance their digital platforms and delivery capabilities, allowing them to reach a broader customer base. The convenience of online ordering and home delivery has become a crucial factor for success in the industry, with many consumers preferring to enjoy their favorite meals from the comfort of their homes.
Moreover, the competitive landscape in South Korea's food retail industry is marked by the presence of both domestic and international players, each vying for market share. The growth of franchise models has enabled brands like Bonchon to expand rapidly, leveraging local partnerships to penetrate new markets effectively. The emphasis on quality, innovation, and customer experience remains paramount as companies strive to differentiate themselves in a crowded marketplace.
As the industry continues to evolve, the focus on sustainability and ethical sourcing is becoming increasingly important. Consumers are more aware of the environmental impact of their food choices, leading to a …