Chicken franchise Norang Tongdak taps global market, valued at $150M

Q Capital, Corstone Asia target foreign buyers, banking on Cha Eun-woo’s star power

South Korean private equity firms Q Capital Partners and Corstone Asia are preparing to sell chicken franchise Norang Tongdak, with plans to target foreign buyers before launching domestic marketing efforts.

According to investment banking sources, the firms recently circulated a flyer to potential international buyers just before the Lunar New Year holiday. The flyer, a brief introductory document simpler than a teaser letter, was distributed ahead of the letter, which faced delays.

Norang Tongdak, which features singer and actor Cha Eun-woo from the idol group Astro as its brand model, has emphasized its global ambitions. Industry insiders estimate that top-tier advertising models in South Korea command annual fees of at least 1 billion won ($750,000). Despite the cost, Norang Tongdak’s shareholders view the investment as a way to elevate the franchise’s global profile.

The strategy mirrors that of Compose Coffee, which hired BTS member V to boost its profile before being acquired by the Philippines’ largest food company, Jollibee Foods Corporation, in July 2024. Jollibee, in partnership with South Korean private equity firm Elevation Equity Partners Korea, purchased Compose Coffee for 470 billion won ($350 million).

Singer and actor Cha Eun-woo, the new brand model for Norang Tongdak./Norang Tongdak

The rising global popularity of K-food is a key factor behind such marketing strategies. According to South Korea’s Ministry of Agriculture, Food and Rural Affairs, the nation’s agri-food exports rose from $6.1 billion in 2015 to $9.98 billion in 2024. The weakened won against the U.S. dollar makes South Korean companies more affordable and attractive to foreign buyers.

“The global success of K-content has boosted the popularity of K-food,” an investment banking official said. “Buldak Ramen, for example, saw its popularity surge after BTS member Jimin frequently ate it during live broadcasts.”

Norang Tongdak is reportedly valued at around 200 billion won ($150 million). In 2024, the company posted 15 billion won ($11.3 million) in EBITDA, with its cash reserves contributing positively to its valuation.

Founded in 2009, Norang Tongdak was acquired by Q Capital Partners and Corstone Asia in 2020 for 70 billion won ($53 million). The number of franchise locations has grown from about 400 in early 2020 to over 800 as of 2024. Annual revenue surged from 50.2 billion won ($38 million) in 2019 to 97.3 billion won ($73 million) in 2023, while operating profit rose from 6.5 billion won ($4.9 million) to 11.5 billion won ($8.6 million) during the same period. The company also entered the Vietnamese market in 2018.