Korean Fast Food Industry Strives to Recover

Korea Herald

Korea's fast-food chains are showing signs of recovery after a three-year slump, industry experts have noted.

Fast-food companies have been struggling to improve sales amid criticism that they contribute to obesity. The well-being trend, which has driven consumers towards healthier eating choices, has also compounded the challenges.

McDonald's, Lotteria and Burger King said sales have begun to grow this year compared to a year ago. As unlisted companies, the burger chains declined to reveal figures.

Sales were dealt the greatest blow in 2004 as the award-winning documentary called Super Size Me hurt the image of McDonald's and the whole fast-food industry, experts said.

Sales this year have picked up compared to last year, which was when the Super Size Me documentary brought all the negative publicity to our industry,said Kim Ok-hui, speaking for Lotteria, Korea's leading burger franchise.

The burger companies put the recovery down to menu innovation and aggressive marketing focused on consumer needs. Lotteria has been offering well-being burgers for health-conscious consumers, while Burger King has been focused on upgrading quality. McDonald's, the second-largest chain in terms of number of stores, has been expanding healthy meal choices, along with the traditional burgers.


The industry believes the general bad impression of burgers and fries is dissipating. They are ready to expand the number of stores as part of restructuring efforts following the closures of some branches in the past couple of years. The fast-food giants are also ready to keep on rolling out new menu choices to bring repeat customers and cater to a wider range of people.

Kim Bo-mi, a researcher at Dong-suh Market Research firm, said the fast-food industry is still stagnant. She predicts that the well-being trend and growing preference for healthier living will continue to weigh down on the businesses.

Health and lifestyle will be bigger factors in determining recovery rather than economic conditions, said Kim.