Mc Donald's To Double Franchise Stores In Korea

McDonald's said on Monday that it intends to double the number of its franchise stores in Korea to 100 this year.

The American hamburger chain directly operates 291 stores here, and has 53 franchise stores.

"Our business is primarily based on the franchise system. We are now trying to expand this after 26 years of localization in Korea," Director Karen Kim at McDonald's Korea said. "We don"�t have specific goal for how many franchise outlets we will run here, but we will continue to increase the number because franchise stores overseas account for some 80 percent."

The firm adopted the franchise system for the Korean market in 2010.

Opening a franchise store in Korea can cost between 600 million won ($559,910) to 800 million won, according to a market source.

Another American hamburger franchise is fortifying its presence here by strengthening its franchise business as well.

Burger King Korea announced in November that it will increase the number of its franchise stores to 300 nationwide within five years. It operates 167 stores as of Feb. 10 including 15 franchises, according to the firm.

Meanwhile, Lotteria, the nation's No.1 franchise hamburger chain, has been running franchise stores since 1980, operating 1,157 stores in the country as of Feb. 10. Some 90 percent of them are franchise stores.

Hamburger brands are expected to increase competition to expand their sales network here for the time being amid weakening regulations.

The Korea Convenient Restaurant Association said hamburger chains have been allowed to set up more outlets.

Franchise Ranking History
Franchise 500: #16 (2014), #9 (2013), #6 (2012), #3 (2011), #2 (2010),
Fastest-Growing: #19 (2014), #58 (2013), #27 (2012), #12 (2011), #6 (2010),
America's Top Global: #5 (2013), #5 (2012), #3 (2011), #2 (2010)

McDonald's News and Press Releases

This article has been read 734 times.

Would you like to own a McDonald's Franchise?

For more information about becoming a McDonald's Franchise owner, including a franchise overview, start-up costs, fees, training and more, please visit our McDonald's Franchise Information page.