South Korea foodservice market continued to grow in terms of both value and number of outlets. Although South Korea experienced an economic downturn in 2017, the GDP growth rate increased to 2.8%, which is faster than in previous years. The South Korea foodservice market is expanding alongside a rising middle-class population, and is forecasted to reach total value sales of USD 93.8 billion by 2023, growing at a CAGR of 3.9% during the forecast period (2018 – 2023).

Convenience Factor and Westernization Trends

Consumer’s shift towards western cuisines and increased online food orders are the key factors driving the South Korea foodservice market. This is increasing the demand for 100% home delivery/take away segments as they are highly associated with the convenience factor. As Koreans work longer hours, they are increasingly valuing the convenience of fast food clubbed with healthy eating habits. After growth in the popularity of fast food such as pizza and fried chicken over the 2007-2012 period, many South Korea consumers have been driving demand for “Hansik”, a traditional Korean food. This trend has accompanied the recent theme of eating healthy.

South Korean consumers have inclination towards cheaper options when dining out. Amidst the continued fall in the domestic economy, fast food outlets in South Korea and other consumer foodservice restaurants which offer a diverse range of menus at lower prices registered faster sales growth than other consumer foodservice outlets.

Fast Food Records the Highest Growth Rate

The South Korea foodservice market is dominated by the fast food operators who are actively launching set-meal menus at competitive prices and constantly offer diverse promotional discounts in throughout the year. The market for full service restaurants in South Korea is declining due to rise in inflation and economic downturn in South Korea as consumers are not willing to spend more on dine-out restaurants.

As of 2017, independent foodservice restaurants grew in terms of value sales, transactions and outlet numbers whereas, chained foodservice showed a better performance. As chain restaurants in South Korea is operated by large global brand owners, they are likely to have a higher number of resources to adapt to the latest technologies and environment in South Korea. The South Korea foodservice market is highly influenced by the westernization and there is rise in demand for pizza serving restaurants. This makes chained foodservice to gain more market growth rate during the forecast period.

Competitive Landscape

The South Korea foodservice market is highly fragmented with the dominance of independent restaurants by volume as they offer local cuisine. The local restaurants are trying to expand their presence by opening chain restaurants. Global players record a high market share by value and are trying to gain competitive advantage by increasing the number of restaurants.

Major Players – Burger King, Paris Baguette, Lotteria, McDonald’s Corp., BBQ, VIPs, Starbucks Corp., Dominos Pizza, Yum! Brands, Mr. Pizza

Key Developments:

April 2018 - Starbucks Coffee Korea Co., forms a 50/50 stake joint venture between Starbucks Coffee International, Inc. and Shinsegae Group, with the launch of voice recognition ordering by integrating with Bixby, Samsung’s intelligent assistant.

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Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
Country level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
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Customization of the Report

Market Entry Analysis
Entry Strategy
Regional Analysis
Macro-Economic Factors affecting Food Service
Ease of Doing Business
PESTLE Analysis
Regulatory Framework
Administrative Process
Mode of Operating Restaurant
How to Register a Company (Flow Chart)
Registration Process