Since launching its first restaurant in Melbourne in 2006, Gami Chicken now boasts 38 casual dining restaurants across Australia, each serving high-quality traditional Korean family recipes mixed with a dash of Melbourne Laneway culture.
The company is targeting $50 million in brand revenue through its franchise-based business and is pushing towards four new locations in the remaining three months of 2023.
To achieve these ambitious targets, increasing value to customers is an objective which drives Jun Lee, Gami Chicken’s Co-Founder and Executive Director, especially with inflationary pressure impacting his costs, and more importantly, the ability of customers to enjoy Gami Chicken.
With inflation sitting between 6-8% over the past 12 months, new individual dishes, lunch menu items, and share plates have been launched to resonate with customers and maintain and drive revenue.
“Value has been created without increasing menu prices,” said Jun, who has also avoided meal size reductions as the only way to appeal to price conscious customers. “New menu items and revised inclusions ensure customers receive greater value, while our store owners can maintain their profit.”
Individual Menu Options and Price Points while Building Korean Identity
Creating value for customers and franchisees is always a challenge, but one that was amplified since Covid-19 and more recently, cost of living increases. The “shareability” of Gami Chicken’s meals, while preserving the Korean value of ‘sharing’ meals and adding value to group dining, was often misunderstood by some who saw share plates of chicken for $50 as prices for an individual dish and quickly moved on.
“To improve value and communicate with customers better, we enhanced our signature menu share dishes,” said Jun. “Introducing higher quality gourmet food while identifying alternative menu items other than sharing dishes has also assisted Gami Chicken’s value proposition.”
Individual menu items offer greater choice to customers who are dining solo or as a small group, while also assisting with lunch covers.
“Individual menu items such as Bibimbap and Gochujang Chicken offer healthier choices while catering to those seeking a traditional Korean dish, and lighter chicken and burger options are resonating with customers at the sub-$16 price point– so far sales of individual menu items have increased 52% since April,” said Jun. Gami Chicken’s lunch turnover has also increased 18% since the casual dining outfit began focusing on individual menu items and healthier, traditional Korean dishes.
Jun and his team focused on ensuring value continued to be delivered to guests. “As pricing remains the key determinant when choosing products, value packs and a wider range of budget-friendly menu options have delivered 254% sales growth between April and September 2023,” says Jun.
Part of that success is down to providing an accessible price range of $20-$29 for customers. This price range has allowed Gami Chicken to attract new market segments.
For more information visit www.innoveilgami.com.au