The world famous fast food franchise is struggling to stay offshore in the Korean market. This year alone, two of the world’s leading fast food franchises in Korea were sold to new owners.
August 31st, Yum! Brands, a fast food chain company based in the United States, sold a stake in Pizza Hut Korea to a Korean investment firm, Orchard One. This was the second time that Korean conglomerate KG Group acquired KFC Korea and then a franchise other than Korea earlier this year. McDonald’s Korea is likely to face a similar fate. This is because the US parent company has been looking for suitable new owners since last year. However, the transaction is currently pending.
Industry experts pointed out that drastic changes in the market and intensifying competition were the main reasons for poor performance and failed final sellouts. Korea’s food service industry has undergone major changes around the year 2000. Customers can choose from more menu options and a range of price points ranging from low to premium. The rise of single households and a growing interest in maintaining a healthy lifestyle has shaped the franchise market.
In particular, Korean customers’ taste for menu items and the way a lot of food is conveyed here have also affected the performance of the global fast food franchise