Korea's burger market sizzles as global, local chains go full grill
Korea's craving for burgers shows no sign of abating, with the once-occasional indulgence now a regular part of many consumers' weekly diet.
According to market research firm Euromonitor, Korea's burger market has climbed steadily from 2.1 trillion won ($1.51 billion) in 2014 to a projected 5 trillion won this year, up from 4.2 trillion won in 2024.
Riding this swift rise, global players are digging deeper into localization, whereas local brands look outward to grow.
Global chains, local touch
McDonald's Korea is marking a historic turnaround among foreign labels.
Last year it returned to the black for the first time in eight years, posting an operating profit of 11.7 billion won and net income of 115.3 billion won. Revenue rose 11.8 percent to a record 1.25 trillion won, while total sales, including franchises, climbed 9.1 percent to 1.41 trillion won.
The company credits its success to a blend of customer-focused initiatives, steady menu innovation and leaner operations, with a key role played by the global chain's embrace of the uniqueness of Korea's different regions.
One standout example came last year when McDonald's Korea relaunched the Jindo green onion cream croquette burger, made with green onions from Jindo in South Jeolla Province, following up on the product's earlier success.
The latest hit arrived in July, with the Iksan sweet potato mozzarella burger, made with sweet potatoes from North Jeolla Province, surpassing one million sales in just nine days.
'We believe the popularity stems from using ingredients familiar to Koreans and reimagining them through McDonald's unique know-how and style,' said an official from McDonald's Korea.
Industry observers say the loconomy market -- integrating local communities into business -- is in a full-fledged growth phase, offering companies a prime opportunity to align their brand identity with local values.
Another international name, Burger King, has also charted a course to record profits. BKR, the operator of Burger King and Tim Hortons in Korea, posted a record operating profit of 384 billion won in 2024, up 60.4 percent, on revenue of 792.7 billion won.
While Burger King Korea's bold marketing and embrace of consumer feedback -- from a stunt ad declaring the end of Whopper sales to reviving discontinued items -- have fueled its growth, the chain has also found success overseas with burgers and ingredients created and sourced in Korea.
The quattro cheese Whopper, developed in Korea in 2013, has been introduced to seven other countries, including the United States, China and Japan, since 2015. The company added that ingredients sourced in Korea, such as cheese buns, assorted mushrooms and bulgogi sauce, are also being supplied to overseas markets.
'We are seeing more foreign tourists visiting Korea seek out menu items unique to Burger King Korea,' a company official said, adding that the chain will continue consumer-focused menu development at a time when Korean tastes increasingly help shape global trends.
Local names, global reach
Amid the market's expansion, Korean burger chains are beefing up their presence both at home and abroad.
Lotte Group's food franchise arm, Lotte GRS, where burger chain Lotteria accounts for more than 70 percent of revenue, is on the verge of breaching the 1 trillion won sales mark, posting 995.4 billion won in revenue last year, up 7.7 percent, while operating profit surged 87.6 percent to 39.1 billion won.
According to Lotte GRS, product innovation -- including chef collaborations like the Napoli Mafia mozzarella burger -- along with store renovations and automation tools contributed to its improved earnings.
Another fast-rising domestic chain, Mom's Touch, posted record highs last year with revenue of 417.9 billion won and operating profit of 73.4 billion won.
Launched in 2004, the chain built its reputation on affordable, high-quality chicken burgers and, in less than two decades, has become the nation's largest burger franchise by store count, with 1,450 locations nationwide as of January.
Both domestic players, aiming to tap new market potential, now have international expansion on the table.
With an established presence in Asian markets such as Vietnam, Mongolia, Myanmar and Laos, Lotteria's latest partnership in Malaysia, signed in August, targets 30 new stores within five years, while its first US location debuted on Monday in Fullerton, California.
At the store's soft-opening event last week, Lotteria shared on social media photos of long queues outside the store, where customers, some shielding themselves from the heat with parasols, waited at least an hour to try the chain's signature bulgogi, shrimp and rice burgers.
'The global influence of K-culture is likely to give the brand a strong tailwind overseas,' one industry official said, adding that Lotteria's key advantage lies in its distinctive Korean-inspired menu.
Likewise, Mom's Touch, which currently operates overseas stores in Mongolia, Thailand and Japan, plans to enter Laos and Cambodia in the second half of this year, with further expansion planned for Malaysia and Kazakhstan.
The chain's Korean-style chicken burger recently found success in Japan, where its store in Shibuya, Tokyo, opened last year, attracted more than 700,000 visitors and generated over 5 billion won in sales in its first year.
In September, it plans to open its second Japan location in Harajuku, which will be the brand's largest outlet worldwide.
'We are also exploring various models, including joint ventures, with strategies tailored to the business culture of Japanese companies,' said a Mom's Touch official, as the chain aims to open up to five additional stores by year-end.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
10 hours ago
- Korea Herald
Probe into ‘Hitman' Bang Si-hyuk, explained in 2 minutes
Though Bang Si-hyuk, the K-pop mogul behind BTS, has enjoyed enormous success with Hybe's global rise and a personal fortune nearing 3.5 trillion won ($2.5 billion), his career now faces one of its toughest tests. Korea's regulators have launched a rare multiagency probe into alleged stock manipulation tied to the 2019 initial public offering of Hybe (then Big Hit Entertainment). The legal storm threatens both his reputation and the company's credibility. Bang under fire Founder in spotlight: Bang Si-hyuk, the architect behind BTS' global success, faces allegations of misleading investors ahead of Hybe's 2019 IPO. Charges: Accused of unfair trading, allegedly pocketing half of the 400 billion won raised. Bang's response: Broke his silence in a letter to employees, pledging full cooperation with authorities. Multi-agency crackdown FSC referral: The Financial Supervisory Commission handed the case to prosecutors — its toughest measure. Police raids: Offices of Hybe and the Korea Exchange were searched. Tax probe: The National Tax Service launched an intensive investigation using its special bureau. Extraordinary scope: All four state arms — prosecutors, police, regulators, NTS — simultaneously targeting Hybe. Shareholders shifting: Netmarble cut its stake by 2.6 percent in May; The National Pension Service trimmed holdings in June 2024. Partnership strains: NFT venture with crypto firm Dunamu wound down after losses. Bang remains key: Largest shareholder with 31.57 percent stake. Market turmoil Stock swings: Hit 323,000 won on July 2, then plunged 24 percent to 246,000 won by July 30. Partial rebound: Now back near 283,500 won but still below IPO levels. Value trap fears: Shares still lag far behind peak despite solid earnings.
Korea Herald
12 hours ago
- Korea Herald
'Resting' youth cost economy over 10 trillion won a year: report
An increasing number of highly educated young people are neither working nor seeking employment An estimated 53.4 trillion won ($38.5 billion) in potential economic output may have been lost between 2019 and 2023 due to an increasing number of young South Koreans who voluntarily stayed out of the workforce, a new study showed Monday. The report by Professor Lee Mi-suk of the Changwon National University, commissioned by the Federation of Korean Industries, quantified the economic impact of a youth population that chose to 'rest' during the five-year period. This refers to those between the ages of 15 and 29 who were neither employed nor looking for a job and had no particular reason such as academic study, training or housework. Those who were unemployed but looking for a job, or were in the process of obtaining credentials for future employment, were not considered to have rested. The study found that 8.89 trillion won could have been added to the economy in 2019 if voluntarily unemployed youth had worked that year, followed by 11.45 trillion won in 2020, 10.36 trillion won in 2021, 11.17 trillion won in 2022, and 11.51 trillion won in 2023. The estimates are based on assumed monthly earnings equivalent to 80 percent of the salaries of their working peers, which ranged from 1.55 million won in 2019 to 1.79 million won in 2023. Legally-mandated insurance fees were deducted, and the adjusted monthly income was multiplied by 12 to estimate the potential net income the group would have contributed to the economy each year had they been employed. The percentage of people in the 15-29 age demographic who were resting increased from 4.48 percent in 2019 to 5.47 percent in 2023. Compared to the total population, 0.93 percent of young Koreans rested in 2023, up from 0.84 percent in 2019. The youth population itself decreased from 9.66 million to 8.79 million during the same period. Data shows more young people who received higher education chose not to work. In 2019, 159,000 with a bachelor's degree or higher rested, but the number increased to 184,000 in 2023. "Many young people who could be receiving high salaries are resting, causing economic loss (to the country)," the report said. A report last week by Statistics Korea showed that 421,000 Koreans in their 20s rested in July, marking an all-time high for the month since the government started compiling the statistic. The employment rate for the 15-29 group marked a 0.7 percent decrease on-year, in contrast to an increase in employment for the general population. Lee's study suggested that the government should approach the issue from multiple angles, such as expanding scholarships based on work-study programs and career guidance for young people to motivate them to seek employment.
Korea Herald
13 hours ago
- Korea Herald
Korea's burger market sizzles as global, local chains go full grill
McDonald's, Burger King localize tastes; Lotteria, Mom's Touch take K-style burgers abroad Korea's craving for burgers shows no sign of abating, with the once-occasional indulgence now a regular part of many consumers' weekly diet. According to market research firm Euromonitor, Korea's burger market has climbed steadily from 2.1 trillion won ($1.51 billion) in 2014 to a projected 5 trillion won this year, up from 4.2 trillion won in 2024. Riding this swift rise, global players are digging deeper into localization, whereas local brands look outward to grow. Global chains, local touch McDonald's Korea is marking a historic turnaround among foreign labels. Last year it returned to the black for the first time in eight years, posting an operating profit of 11.7 billion won and net income of 115.3 billion won. Revenue rose 11.8 percent to a record 1.25 trillion won, while total sales, including franchises, climbed 9.1 percent to 1.41 trillion won. The company credits its success to a blend of customer-focused initiatives, steady menu innovation and leaner operations, with a key role played by the global chain's embrace of the uniqueness of Korea's different regions. One standout example came last year when McDonald's Korea relaunched the Jindo green onion cream croquette burger, made with green onions from Jindo in South Jeolla Province, following up on the product's earlier success. The latest hit arrived in July, with the Iksan sweet potato mozzarella burger, made with sweet potatoes from North Jeolla Province, surpassing one million sales in just nine days. 'We believe the popularity stems from using ingredients familiar to Koreans and reimagining them through McDonald's unique know-how and style,' said an official from McDonald's Korea. Industry observers say the loconomy market -- integrating local communities into business -- is in a full-fledged growth phase, offering companies a prime opportunity to align their brand identity with local values. Another international name, Burger King, has also charted a course to record profits. BKR, the operator of Burger King and Tim Hortons in Korea, posted a record operating profit of 384 billion won in 2024, up 60.4 percent, on revenue of 792.7 billion won. While Burger King Korea's bold marketing and embrace of consumer feedback -- from a stunt ad declaring the end of Whopper sales to reviving discontinued items -- have fueled its growth, the chain has also found success overseas with burgers and ingredients created and sourced in Korea. The quattro cheese Whopper, developed in Korea in 2013, has been introduced to seven other countries, including the United States, China and Japan, since 2015. The company added that ingredients sourced in Korea, such as cheese buns, assorted mushrooms and bulgogi sauce, are also being supplied to overseas markets. 'We are seeing more foreign tourists visiting Korea seek out menu items unique to Burger King Korea,' a company official said, adding that the chain will continue consumer-focused menu development at a time when Korean tastes increasingly help shape global trends. Local names, global reach Amid the market's expansion, Korean burger chains are beefing up their presence both at home and abroad. Lotte Group's food franchise arm, Lotte GRS, where burger chain Lotteria accounts for more than 70 percent of revenue, is on the verge of breaching the 1 trillion won sales mark, posting 995.4 billion won in revenue last year, up 7.7 percent, while operating profit surged 87.6 percent to 39.1 billion won. According to Lotte GRS, product innovation -- including chef collaborations like the Napoli Mafia mozzarella burger -- along with store renovations and automation tools contributed to its improved earnings. Another fast-rising domestic chain, Mom's Touch, posted record highs last year with revenue of 417.9 billion won and operating profit of 73.4 billion won. Launched in 2004, the chain built its reputation on affordable, high-quality chicken burgers and, in less than two decades, has become the nation's largest burger franchise by store count, with 1,450 locations nationwide as of January. Both domestic players, aiming to tap new market potential, now have international expansion on the table. With an established presence in Asian markets such as Vietnam, Mongolia, Myanmar and Laos, Lotteria's latest partnership in Malaysia, signed in August, targets 30 new stores within five years, while its first US location debuted on Monday in Fullerton, California. At the store's soft-opening event last week, Lotteria shared on social media photos of long queues outside the store, where customers, some shielding themselves from the heat with parasols, waited at least an hour to try the chain's signature bulgogi, shrimp and rice burgers. 'The global influence of K-culture is likely to give the brand a strong tailwind overseas,' one industry official said, adding that Lotteria's key advantage lies in its distinctive Korean-inspired menu. Likewise, Mom's Touch, which currently operates overseas stores in Mongolia, Thailand and Japan, plans to enter Laos and Cambodia in the second half of this year, with further expansion planned for Malaysia and Kazakhstan. The chain's Korean-style chicken burger recently found success in Japan, where its store in Shibuya, Tokyo, opened last year, attracted more than 700,000 visitors and generated over 5 billion won in sales in its first year. In September, it plans to open its second Japan location in Harajuku, which will be the brand's largest outlet worldwide. 'We are also exploring various models, including joint ventures, with strategies tailored to the business culture of Japanese companies,' said a Mom's Touch official, as the chain aims to open up to five additional stores by year-end.
