Bonchon agrees to acquisition by two entities
Bonchon to be acquired by Minor Food and Serruya Private Equity to fuel growth in Americas.
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Bonchon has agreed to be acquired by Minor Food and Serruya Private Equity. Minor Food will manage locations outside the Americas, while Serruya will take over the U.S., Canada, Mexico, and Chile markets to expand Bonchon’s footprint. The chain operates around 500 units globally, with 150 in the U.S.
Why It Matters
The deal may accelerate Bonchon's growth in the Americas, potentially impacting territory availability for franchisees and multi-unit operators in a competitive fast-casual market.
Bonchon, the Korean chicken chain known for its double-fried chicken and Korean-inspired sauces, has announced its acquisition by two entities: Minor Food and Serruya Private Equity. The transaction, expected to close in August, involves Minor Food acquiring Bonchon locations outside the Americas, while Serruya will take ownership of the outlets in the Americas, with plans to expand into the U.S., Canada, Mexico, and Chile.
Bonchon boasts approximately 500 units worldwide, including 150 in the U.S., indicating a robust presence that suggests significant scalability under the new owners. Minor Food is part of Minor International and is one of Asia's largest restaurant groups, operating around 2,843 restaurants in 24 countries, including well-known brands such as Dairy Queen and Burger King. Serruya Private Equity, based in Toronto, has a strong history in the restaurant space, having previously owned Global Franchise Group and currently backing other brands like STK Steakhouse and Yogen Fruz.
Michael Serruya, Chair of Serruya Private Equity, expressed enthusiasm for the acquisition, stating, “Bonchon is one of the most compelling global restaurant brands, with a differentiated product, a loyal customer base, significant untapped growth potential and a highly scalable franchise model.” This aligns with Suzie Tsai, Bonchon’s CEO, who reflected on the brand’s growth being indicative of the wider adoption of Korean flavors.
The implications for existing franchisees include potential continuity in franchise operations, with both Minor Food and Serruya bringing extensive operational experience and support structures. However, franchisees may want to monitor any changes in royalty structures and support systems as the ownership transitions. Given the presence of these serious players in the franchise market, such changes could also enhance operational excellence and growth strategies.
As the deal progresses, stakeholders should watch how quickly the brand capitalizes on its growth potential and the strategies implemented by Serruya and Minor Food to enhance Bonchon’s footprint in the Americas and beyond.
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