Burgers are booming, but pizza is plummeting in Korea's bimodal fast food market

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Burgers are booming, but pizza is plummeting in Korea's bimodal fast food market

Published: 12 May. 2025, 17:27

Audio report: written by reporters, read by AI

A McDonald's in Seoul on April 29 [YONHAP]

Korea’s two dominant fast food categories — burgers and pizza — are heading in different directions. As inflation remains high and domestic demand weak, the overall restaurant industry continues to slump. Yet, burger chains are bustling with new product launches and revitalized marketing while pizza chains are struggling to regain momentum.

On Thursday, No Brand Burger unveiled its latest offering, the “NBB Amazing Double,” a 4,500 won ($3.20) burger with a patty 30 percent heavier and cheaper than the industry average. No Brand Burger is a mid- to low-priced brand that Shinsegae Food launched in 2019.

At a press briefing the same day, the brand emphasized its core concepts using phrases such as “extreme cost-effectiveness,” “rational consumption” and “affordable pricing.”

“In a time when an average lunch costs 10,000 won, this will be the most satisfying meal option,” said Kim Kyu-sik, head of Shinsegae Food’s franchise division.

The company also introduced a new compact franchise model with a startup cost reduced to 100 million won — about 60 percent of previous levels. It aims to aggressively expand its franchise network and become one of Korea's top three burger brands by 2030.

On April 23, Burger King launched the “Krispper,” a new menu item positioned as a follow-up to its flagship Whopper. While the brand has traditionally focused on premium beef burgers, the Krispper marks its foray into the chicken burger market.

A burger set from No Brand Burger in Seoul on March 31 [YONHAP]

The burger market is becoming increasingly competitive, with global premium brands like Shake Shack and Five Guys joining the fray. Despite the heated battle, the sector remains buoyant. Last year, the “big four” burger chains posted significant profit — McDonald’s Korea with 11.7 billion won, Lotteria with 39.1 billion won, Burger King with 38.4 billion won and KFC with 16.4 billion won.

In contrast, leading pizza chains face a more somber outlook. Pizza Hut Korea, a first-generation franchise, has been in the red since 2022 and recently entered a rehabilitation process after legal disputes with franchise owners.

Mr. Pizza continued to record losses last year at minus 20 billion won, while Domino’s Pizza Korea managed 7 billion won in operating profit, which the company attributed to reductions in selling and administrative costs.

According to market research firm Euromonitor International, the size of Korea’s franchise pizza market has remained stagnant, at around 1 trillion won, since 2019.

A Mr. Pizza sign [YONHAP]

Industry observers say this contrast stems from “lunchflation,” making value-for-money offerings more attractive. A single pizza from a large franchise, once delivery fees and premium toppings are added, can cost up to 40,000 won, making it harder for consumers to justify compared to burgers.

“Burgers have become established as a quick and convenient solo meal,” one industry insider said.

The rise in single-person households is another disadvantage for large-scale pizza franchises. As demand grows for smaller, single-serving meals, delivery apps have expanded the range of one-person food options available.

With large franchises faltering, smaller and cheaper pizza brands offering compact portions and value pricing are filling the gap. Cost-effective brands like Pizza Nara Chicken Gongju and Pizza School outperformed their larger rivals in operating profit last year, bringing in 21.1 billion won and 5.6 billion won each. GoPizza, which promotes its single-serving pizzas, has grown into a brand with more than 1,200 stores across seven countries in just seven years.

“The popularity of burgers and single-serving pizzas is driven by the twin trends of affordability and solo dining,” one industry insider said. “Major pizza chains need to proactively develop products and services aligned with current consumer trends.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HWANG SOO-YEON [[email protected]]