McDonald's Korea to increase store count, introduce new local menu

Industry

Published: 05 Jul. 2023, 18:50 Updated: 05 Jul. 2023, 19:06

McDonald's Korea to increase store count, introduce new local menu

Kim Ki-won, the managing director of McDonald's Korea, explains the publication of the company's commemorative book, recent performance and future business strategies during a press conference Wednesday at The Plaza Seoul Hotel, central Seoul. [MCDONALD'S KOREA]

McDonald's Korea will increase its store count to 500 by 2030 from the current 400, following a year of record-breaking sales since entering the Korean market.

McDonald's Korea Managing Director Kim Ki-won unveiled the company's expansion plans of opening 10 new stores by 2025, and an additional 30 stores by 2030, during a press conference held on Wednesday to celebrate its 35th anniversary.

The company also plans to introduce eight large-scale drive-through stores this year and renovate 12 existing stores.

"From serving 3,000 customers and generating annual sales of 1.7 billion won [$1.3 million] in our first year in 1988, we have evolved into a company with over 1 trillion won in annual sales, attracting 400,000 customers daily," Kim said. "Currently, we serve around 400,000 people per day, equivalent to approximately 277 customers every minute."

In the first half of this year, the American fast-food chain recorded sales of 623 billion won, or a 10 percent growth compared to the same period last year. In 2022, the company achieved its highest-ever sales figure of 1.18 trillion won, including franchise stores. With its strong performance in the first half of this year, the company has the potential to set a new sales record.

The company attributed this growth to factors including more new stores, and the addition of new menu items to its line-up like the McCrispy Chicken Burger.

However, addressing operating loss remains a challenge for McDonald's Korea. It recorded an operating loss of 27.8 billion won last year.

However, Kim said the company will continue investment along with the store expansion.

"We cannot diminish our investments solely for the sake of operating profits," she stressed. "By reinforcing the fundamental aspects, we envision achieving a sound and profitable business performance."

McDonald's Korea is taking steps toward sustainability by transitioning to recyclable packaging materials by 2025 and sourcing eggs from animal welfare-certified farms. The company is also planning to establish a second Ronald McDonald House in the Seoul metropolitan area, providing accommodation for families with critically ill children.

Lee Hae-yeon, chief marketing officer at McDonald‘s Korea, introduces the new menu item Jindo Green Onion Cream Croquette Burger from the Taste of Korea project at a press conference held Wednesday. [MCDONALD’S KOREA]

Under its Taste of Korea project — one of its environmental, social and governance initiatives — McDonald's Korea is launching a new menu item called the Jindo Green Onion Cream Croquette Burger. The burger is made using approximately 50 tons of green onions from Jindo Island off the southwestern tip of the Korean peninsula.

“McDonald's Korea is not merely a foreign brand, but a participant in Korean society, dedicated to making a meaningful impact on Korean customers and the community ― and as part of this, we have been carrying out the Taste of Korea for the past three years,” according to Lee Hae-yeon, chief marketing officer at McDonald’s Korea.

“Although we have already been incorporating local ingredients into our menu items, this campaign aims to maximize the utilization of Korean ingredients," Lee said. "With such initiatives, we will offer customers even more delicious and unique menu choices and additionally, provide stable income opportunities and promote local specialties. This is particularly beneficial for domestic farmers who are facing economic challenges.”

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]