Korean fried chicken and beer restaurant Gami Chicken to expand to 42 locations across Australia
Gami Chicken’s first restaurant was launched in 2006 and has sold 55.2 million pieces of chicken since launching.
Korean fried chicken and beer restaurant Gami Chicken is aiming to expand from 37 casual dining venues across Australia to 42 locations by the end of this year, with a focus on opening stores up for business in New South Wales and South Australia.
The Melbourne-born casual dining restaurant was founded by four friends, Jun Lee, Ayden Jung, Max Ji and Rio Yoon, following a pact that took place in 1996 to open a business together and make Korean fried chicken they would be proud to serve their family and friends. The name Gami means ‘beautiful taste’ in Korean.
Gami Chicken’s first restaurant was launched in 2006 and has sold 55.2 million pieces of chicken since launching. Through its franchise-based business, the restaurant has now reached almost $50 million in brand revenue and is targeting 15% year-on-year in-store revenue growth.
There are currently 26 Gami Chicken stores in Victoria, two in Western Australia and one each in Australian Capital Territory and South Australia. By the end of August, Gami Chicken will have eight stores in NSW.
Co-founder and executive director Jun Lee said Gami Chicken is on track to keep growing its network of restaurants.
“Gami Chicken is focusing on NSW and SA, with 36 locations identified for NSW and eight identified for SA,” he said.
“We have executed a master franchise agreement in Indonesia, however, the first store is scheduled to open in the first quarter of 2024. But besides this, no other plans for international expansion.
“We will be opening in Newtown, Sydney, in August. We are looking to grow further in NSW in 2023 and 2024.
“Upon the scheduled expansion in 2023, five more including Newtown, in 2024 we’re planning to grow by 10 to 12 more stores in NSW and SA.”
Jun Lee said there are now between 500 and 600 people working in Gami Chicken stores, which are operated under a franchise model.
“Each franchisee is responsible for growing and developing their team to best suit their restaurant,” he said.
More and more Australians are turning to casual dining options, according to the Euromonitor Voice of the Consumer: Lifestyle Survey 2022, with 16% saying they don’t have the time to cook, 35% ordering takeaway or pick-up ready food to eat at home at least once a week and 25% of consumers opting to eat at restaurants.
The dine-in category made up 54.7% of Gami Chicken’s in-store revenue composition, with takeaway at 14.6% and delivery at 30.7% in 2023.
Jun Lee said the numbers are exciting and really reassuring.
“If we continue to follow this trajectory of dine-in revenue across the majority of our stores, in addition to our franchise expansion, we’ll be able to move towards a $60 million business by 2024, ” he said.
“As pricing remains the key determinant when choosing products, we introduced value packs and a wider range of budget-friendly menu options, which delivered 271% sales growth between March and June 2023.”
Jun Lee added that casual dining can be a fine line, warning against leaning too heavily on either side and noting the importance of remaining accessible for all consumers whilst still providing an elevated dining experience.
“Casual dining provides more opportunities for Australians to socialise together. As opposed to home delivery, connecting with friends and family socially for a meal is a distinct activity and one that all enjoy,” he said.
“As opposed to formal dining options, casual dining is accessible to all Australians.”
