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Future Possibility: BonChon taps development SVP to oversee expansion (Score 28)

Update: Shortly after hiring a new CEO (more below) chicken restaurant chain BonChon has named Greg Buchanan its development SVP, effective May. Buchanan will oversee BonChon's upcoming expansion, which will see 36 new locations this year. Previously the chief development officer for Le Duff America, Buchanan brings additional marketing leadership experience from companies such as TGI Fridays and Darden Restaurants.

Within the past year, Adbeat reports that BonChon has spent $2,000 on digital display ads placed primarily through Google (70%) onto site destinations including youtube.com, westword.com, elevenwarriors.com, inspiremore.com and orlandoweekly.com. During the past 24 months, the company's spend has totaled $25,200.

Since BonChon, #899 on the locations will have the upper hand here, especially those with high ROI strategies among middle- to upper-middle-class millennials.

Agency and martech readers should continue to keep BonChon on their radars for the future. Focus on differentiating the brand from competitors like PeiWei, KyoChon and Kickin Chick'n. Lucky Break handles PR duties.

Below was originally published on July 17:

BonChon, a chain of Korean-style fried chicken & wings restaurants, tapped Flynn Dekker as its new CEO in April. Dekker most recently served as CMO of Wingstop, and prior to that, served as CMO of RAVE Restaurant Group. He replaces Jinduk Seo, who will continue to serve on the board of directors.

While this isn't a CMO hire, given Dekker's marketing experience, agency changes may be still imminent. Therefore, we encourage agencies and martechs with restaurant experience to reach out for work. We don't know who handles media or creative, but we know that PR is out of Lucky Break. Focus pitches on assisting Dekker with his duties.

VIG Partners, the South Korea-based private equity firm that acquired BonChon in December 2018, said Dekker would build on the brand's growth and momentum in an attempt to keep BonChon top-of-mind amid other chicken chains like Chick-fil-A, KFC and Zaxby's. Meanwhile, Dekker said he would help BonChon expand since it has "a lot of white space."

The expansion plans will see BonChon open 36 restaurants this year so it can work towards its goal of having 300 to 400 locations in the US by the end of 2024. Marketing associate Victor Chang said that the expansion will also help BonChon improve its brand awareness. That's why BonChon promote each new location with press, Facebook advertising and local influencers.

Chang also disclosed that BonChon has two objectives for future growth outside of its expansion plans. The first objective - building strong brand loyalty - is something BonChon has already worked hard towards. Chang said the company has an 81% retention rate because of its differentiators: it has a unique Korean heritage and menu; it creates a family-friendly environment rather than a chain feel; and it uses high quality chicken. Expect it to continue to leverage those differentiators in upcoming marketing initiatives.

And expect upcoming marketing initiatives to focus on digital marketing. The second growth objective - creating a digital-first strategy that adapts with technology - should see BonChon increase digital marketing. It currently uses display, search and social media, but may expand to other digital channels in the future. We'll keep you posted if we learn more.

With that in mind, sellers want to secure revenue along this account will likely have an advantage with a high ROI digital strategy. BonChon doesn't have a top spending period, so keep an eye on upcoming restaurants and special promotions. Chang said the chain primarily targets middle-class to upper-middle-class millennials, especially those near its locations.

Adbeat reports digital display over the last 12 months has totaled $3.1k, a decrease from the $22.1k spent during the 12 months prior. Ads are placed primarily via Google (98%) onto sites like orlandoweekly.com, youtube.com, themeparktourist.com, westword.com and elvenwarriors.com. Spend through this channel will likely increase shortly.