Bonchon Outpaces Industry, Builds on 2020 Growth

Sales growth momentum

Bonchon's strong sales performance was an outlier throughout 2020 despite the global challenges faced by the restaurant industry. According to Black Box Intelligence™ data, Bonchon consistently outpaced all other restaurant segments in 2020 while continuing to grow its U.S. store count and positive same store sales. They've maintained this momentum through 2021 with positive 15.3% same store sales as of June 26, 2021.

"Bonchon remains one of fastest growing restaurant brands in the United States thanks to the hard work and perseverance of our franchise partners and team members during a year of unprecedented industry challenges," said Bonchon CEO, Flynn Dekker. "Sales growth has steadily increased due to strategic enhancements in operations, supply chain and technological innovation. These strategic shifts have not only allowed Bonchon to build our revenue even further, but also to continue expanding our footprint with new openings across the U.S."

Bonchon's impressive performance has been fueled by quick, aggressive pivots into new technologies and streamlined operations, including a standardized POS system, launch of online ordering, strong partnerships with 3rd party delivery companies and delivery integration through their proprietary online ordering channels in partnership with DoorDash Drive. To support both new and existing franchisees, the company added experienced team members and Field Business Consultants to provide training on operational best practices, customer service, food quality, and menu strategy. These technology and operations investments have paid off, contributing to the company's 25.

Unit expansion plans

4% average five-year annual unit growth rate.

Earlier this year, Bonchon launched its first two company-operated fast-casual restaurants, which debuted in Addison, Texas and Towson, MD. The new model has been well received by franchise partners, so much so that 72% of the 23 locations planned to open by the year's end will be the fast-casual format. Bonchon continues to offer flexibility in restaurant design with casual, fast-casual and non-traditional service models.

The accomplishments around increased sales and an increased domestic footprint have garnered the company numerous accolades over the past year. Most recently, Bonchon was acknowledged for the first time in Nation's Restaurant News' 2021 "Top 500 Restaurants" where they ranked #208 and were in the top 10% out of the top 250 in terms of unit growth. They were also named Fast Casual Magazine's 2021 "Top 100 Movers & Shakers" for the second year in a row and made their debut in Entrepreneur's "2021 Franchise 500 List".

Founded in South Korea in 2002 and established in the United States in 2006, Bonchon, Korean for 'my hometown,' is known for its crunchy, double-fried chicken. The international brand currently has more than 110 U.S.

restaurants with franchise outposts in Arizona, California, Colorado, Connecticut, Washington D.C., Florida, Georgia, Illinois, Massachusetts, Maryland, Minnesota, New Jersey, North Carolina, Nevada, New York, Ohio, Oregon, Pennsylvania, Texas, Virginia, and Washington.

Bonchon is regularly recognized for its fan-favorite chicken, notable growth, and forward-thinking business practices. Bonchon was recognized by Business Insider as "the gold standard for fried chicken" beating five major restaurant brands for "best chicken wings." The brand was most recently included in Nation's Restaurant News' 2021 "Top 500 Restaurants", Fast Casual Magazine's 2021 "Top 100 Movers & Shakers" and Entrepreneur's "2021 Franchise 500 List."