Bonchon Changes Ownership Model with a Split Structure

The ownership structure of the Korean fried chicken chain Bonchon is changing. The current shareholders VIG Partners, along with founder Seo and his family, have agreed to the acquisition of Bonchon International by Minor Food and Serruya Private Equity. The transaction is expected to be completed by August 2026.

The distinctive aspect of the acquisition, which sets it apart from typical restaurant chain transactions, is that the brand will be divided into two different ownership areas geographically. Minor Food, fully owned by Minor International, will control Bonchon’s brand and operations outside of the Americas. Canada-based Serruya Private Equity will own the operations in North, Central, and South America.

This structure signifies the beginning of a new era where an international franchise network of approximately 500 restaurants will be expanded not from a single center but by two different regional owners.

Minor Food Transitions from Franchise Operator to Brand Owner

The acquisition is particularly noteworthy for Minor Food. The company is not a new investor entering Bonchon; it is already the master franchise operator of the brand in Thailand and the largest master franchise partner in terms of system sales.

According to the official statement, Minor Food's net investment in the transaction will be $50 million. In return, the company will become the owner of Bonchon operations and brand rights outside of the Americas.

Thus, Minor Food is becoming the direct owner of a brand it manages through a franchise agreement in specific geographies. This transition creates a significant strategic difference in the restaurant sector. While the franchise operator primarily focuses on restaurant performance in its own market, the brand owner's responsibilities also include new country agreements, franchise standards, brand investments, supply chain, and intellectual property management.

Today, Minor Food operates 2,843 restaurants in 24 countries. Its portfolio includes brands such as The Pizza Company, Dairy Queen, Burger King, Sizzler, Benihana, The Coffee Club, and Bonchon.

Bonchon Reaches a Franchise Network of 500 Restaurants

Bonchon’s story began in 2002 at a single restaurant in Busan, South Korea. The brand entered the U.S. market in 2006 and now has an international franchise network of approximately 500 restaurants across nine major markets.

According to Nation’s Restaurant News, about 150 of these are located in the U.S. The company utilizes various business models, including fast-casual formats, ghost kitchens, and shopping mall locations, alongside traditional restaurants.

The brand's economic model is not solely based on restaurant sales. Minor Food's statement indicates that Bonchon also generates recurring revenue from the sale of its own sauces in addition to franchise royalty income.

Bonchon also operates its own sauce production facility. According to the company's statement, the facility has additional capacity that can support future growth.

This detail is critical for franchise operations. In chains operating in numerous countries, maintaining product standards solely through recipe books can be challenging. Central or controlled supply of characteristic products like signature sauces can help maintain taste standards among different franchise operators.

American Operations Transition to Serruya

Serruya Private Equity will take over Bonchon’s operations in the Americas. This will include markets such as the U.S., Canada, Mexico, and Chile.

The Toronto-based investment group has a long history in the restaurant franchise sector. According to NRN, Serruya's current or past investments include Pinkberry, Yogen Früz, Swensen’s, and various food and beverage brands.

Minor and Serruya are not completely foreign partners to each other. The parties have a business relationship spanning over 30 years; Serruya's owned Swensen’s brand is operated by Minor in Thailand and some regional markets.

Therefore, the geographical sharing that emerges in the Bonchon transaction can be viewed as a new structure of two groups that have previously collaborated in the franchise field, rather than a temporary partnership of two investors working together for the first time.

Could the Dual Ownership Structure Complicate Franchise Management?

The most important aspect of the transaction moving forward will be how Bonchon’s brand integrity is maintained across two separate ownership regions.

A restaurant chain can develop different products in different regions, adapting pricing and store formats to local conditions. However, excessive divergence in brand identity, core product standards, franchise training, and supply processes could alter the consumer experience in different countries.

In the case of Bonchon, the production of sauces and the brand's core Korean fried chicken product become even more critical.

Minor Food's statement indicates that the parties will continue to support their franchise partners and maintain the brand's core attributes. How this will be implemented will be seen in the franchise, product development, and international expansion decisions after the acquisition is completed.

What Does This Mean for Turkey?

Turkey is not among the nine key markets announced for Bonchon. Therefore, the transaction does not currently create a direct change in the restaurant network in Turkey.

Nevertheless, the acquisition model is noteworthy for investors working with international restaurant franchises in Turkey.

The transition of a brand's master franchise operator to brand owner in specific regions over time demonstrates how valuable successful local operations can be in global expansion strategies. Especially in international restaurant chains, the role of franchise partners who understand local consumer behavior, the real estate market, supply, and employee operations may extend beyond merely opening stores.

Stafflink’s Perspective

The most striking aspect of the Bonchon transaction is the ownership architecture rather than the acquisition amount.

The fact that a brand with approximately 500 restaurants will be managed by two different owners, one in America and the other outside of it, could accelerate regional growth. Teams that know local markets better may be able to make investment and franchise decisions more quickly.

On the other hand, one of the most challenging issues in restaurant franchise systems as scale increases is maintaining brand standards. If menu development, training, technology infrastructure, supply, and quality control mechanisms diverge in two regions, different operational cultures may emerge under the same brand over time.

In our view, evaluating Bonchon’s success in this new era will not be sufficient based solely on the number of new restaurants. The performance of franchise operators, unit economics, supply standards, and the extent to which employee training systems can remain common across the two ownership regions will be more significant indicators.

For investors seeking international franchises in Turkey, the transaction carries another message: a strong master franchise operation can be a pathway not only to create a local store portfolio but also to take on a larger role in global brand management in the long term.