PHOTO: NeNe Chicken plans to have 18 restaurants in New Zealand by 2028. NENE CHICKEN/SUPPLIED
NeNe Chicken, the renowned Korean fried chicken chain, is gearing up to make its debut in New Zealand with an ambitious plan to open 18 restaurants, starting next month.
The very first NeNe Chicken establishment is scheduled to launch on September 8th, gracing Lorne Street in central Auckland. This venture is backed by ST Group, which holds franchise and retail rights for various hospitality brands in New Zealand, including Gong Cha, PappaRich, and Ippudo. ST Group is committing an initial investment of $15 million to inaugurate NeNe Chicken’s presence. The chain’s trajectory foresees generating $75 million in revenue over the next five years while simultaneously creating 275 job opportunities.
New Zealand marks the tenth international market for NeNe Chicken, originally founded in South Korea in the late 1990s. This rapidly expanding global culinary sensation already boasts 40 outlets in Australia and a remarkable presence of around 1600 NeNe Chicken stores globally, spanning the United States, Middle East, Canada, Singapore, Hong Kong, Taiwan, Thailand, and Malaysia.
Marcus Teh, the General Manager for NeNe Chicken and ST Group, highlighted the overwhelming success of NeNe Chicken since its 2012 introduction across the Tasman Sea. He noted, “We can see that New Zealand is thriving in all new food and popular brands; the country has been deprived of all these yummy foods that are out of town.”
ST Group’s strategy involves initially establishing a chain of NeNe Chicken stores in the Auckland region and subsequently expanding into Wellington, Hamilton, and Christchurch.
ST Group, a Taiwanese multinational corporation, currently operates 36 food and beverage outlets in New Zealand and is rapidly expanding, particularly with its bubble tea brand, Gong Cha. Gong Cha aims to have 40 outlets in New Zealand by 2025 and has enjoyed significant success in the country. Meanwhile, NeNe Chicken is eager to replicate this success in the New Zealand market. However, Teh pointed out that the pace of opening the planned 18 restaurants would hinge on the speed of recruiting and training staff.
Approximately 20 staff members will be needed for each store, and the interview process for potential candidates has already commenced. Nevertheless, there have been some challenges in sourcing kitchen and front-of-house personnel, Teh acknowledged.
Teh expressed his belief that NeNe Chicken has the potential to become ST Group’s flagship brand in the New Zealand market, given its popularity and rapid growth worldwide.
To sustain its network in New Zealand, the chain anticipates sourcing approximately 120 tonnes of chicken from domestic suppliers annually. Despite the challenges posed by the pandemic, ST Group has rebounded and expects significant growth across its hospitality portfolio this year.
Teh explained, “The easing of border restrictions and resumption of international travel towards the end of last year has lifted business sentiment and begun to revitalize the food and beverage sector. New Zealanders are known to be curious and open to trying new food experiences. As a result, there is a market for innovative and unique food brands that offer something different from traditional quick-service restaurant businesses.”
Gong Cha’s success story in New Zealand reflects this trend, with 28 stores and impressive revenue growth of 20% over the past year, compared to the global store average increase of 6.2%.
SOURCE: STUFF