The dining-out market is growing rapidly due to changes in consumer lifestyle patterns and the increase in single-person households. Franchise restaurants are at the forefront of this growth, offering standardized quality and convenience. Operated under a unified brand system managed and supported by headquarters, they provide consumers with diverse choices and investors with stable returns.
Structure and Current Status of Korean Franchises
As of 2022, the number of franchise outlets in South Korea reached 286,000, a 9.7% increase compared to the previous year, with total sales rising by 18.2% to 100.1 trillion KRW. This growth is expected to continue in the coming years. Major sectors include Korean cuisine restaurants, coffee shops, and convenience stores, with Korean cuisine accounting for 45,000 outlets, or 15.8% of the total.
Consumer preferences are shifting towards healthier menus and convenience. Brands offering low-carb, high-protein options are gaining popularity. Moreover, operational strategies focusing on sustainability, such as eco-friendly packaging and regionally customized menus, are expanding. The use of delivery apps and smart ordering systems has also enhanced consumer satisfaction through convenient ordering services.
Korean Franchises in the Global Market
Korean chicken and tteokbokki franchises are gaining international attention, driving the globalization of K-food. For instance, bhc Chicken opened stores in CentralWorld, Bangkok, Thailand in 2024 and in the Farmers Market in Los Angeles, USA in 2023, solidifying its presence in Southeast Asia and North America. Similarly, BBQ and Kyochon Chicken have recorded hundreds of billions of KRW in overseas sales, demonstrating substantial growth. McDonald’s Bulgogi Burger is another example of successful localization, promoting Korean-style menus globally. These cases illustrate how Korean franchises are establishing themselves in the global market through localization and expansion.
Franchise restaurants are rapidly growing by aligning with evolving consumer preferences for health-conscious menus and eco-friendly management. This trend not only revitalizes local economies and fosters the development of digital industries but also expands economic contributions, such as the export of food ingredients. It is anticipated that franchise companies will continue to achieve sustained innovation by leveraging digital technologies, health-focused menus, and global localization strategies.
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