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U.S. tops China to become No. 1 'K-dining' market

Published: 05 Feb. 2026, 18:55

This photo shows SPC's 600th overseas Paris Baguette store in October 2024. The store is located in Toronto. [SPC]

An estimated four out of every 10 overseas outlets opened by Korean dining brands in China have disappeared over the past five years, a survey showed. In contrast, the number of such outlets in the United States more than doubled over the same period, signaling a shift in the core market for so-called K-dining.

Of all overseas outlets, six out of 10 were either fried chicken restaurants or bakeries. Meanwhile, growth in Korean cuisine restaurants and coffee chains slowed.

According to a 2025 survey on the overseas expansion of Korean dining companies, released by the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries and Food Trade Corporation on Thursday, Korean dining companies operated a total of 4,644 outlets across 56 countries worldwide last year.

Compared to 2020, the number of companies operating overseas declined from 134 to 122, and the number of brands fell from 147 to 139. The total number of outlets, however, increased by 24.8 percent from 3,722 to 4,644, suggesting that overseas expansion has been driven mainly by a small number of large franchise brands.

By country, the market landscape had changed significantly. The number of outlets in the United States rose 2.1-fold from 528 in 2020 to 1,106 in 2025, making it the largest market. China, which had long been the top market, fell to second place as the number of outlets dropped by 39.3 percent from 1,368 to 830 over the same time period amid intensifying local competition.

Customers eat fried chicken and other Korean food at a Genesis bb.q store in the Philippines in this undated photo. [GENESIS BBQ]

The ministry analyzed that “after an era of quantitative expansion that relied heavily on the Chinese and Southeast Asian markets, the industry has entered a phase of qualitative growth that generates real profits in advanced dining markets such as the United States.”

By business type, fried chicken restaurants accounted for 39 percent of overseas outlets, and bakeries made up 25.5 percent; representing about 64 percent of the total, the two led the growth of K-dining abroad. The number of Korean cuisine restaurants rose slightly from 535 in 2020 to 550 last year, but their share fell from 13.6 percent to 11.8 percent. Coffee chains saw a decline in the number of outlets and a drop in the market share — from 8 percent to 4.5 percent — over five years.

Market-specific characteristics were also evident. In the United States, large chicken and bakery brands, such as bb.q, Bonchon Chicken, Paris Baguette and Tous les Jours, led K-dining's growth. In Vietnam, where the number of outlets increased by 37.2 percent compared to 2020, brands targeting the younger generation, including Dookki Tteokbokki and Lotteria, expanded rapidly.

In Japan, strong performances by chicken and beverage brands drove a 68 percent increase in outlets, pushing the country into the top 10 destinations for Korean dining brands. Analysts say Korean dining culture, once centered mainly on expatriate communities, has recently gained a foothold among younger local consumers.

Burger chain Lotteria opened its first U.S. branch in Fullerton, California, on Aug. 14, 2025, its operator, Lotte GRS, said on Aug. 18 that same year. [LOTTE GRS]

“The Japanese market is known for being highly selective and difficult to enter, but once a brand settles, it can generate stable profits,” an industry representative said. “K-dining is moving beyond a passing trend and becoming part of everyday life.”

Challenges remain for companies expanding overseas. Participating companies in the survey cited “difficulties in sourcing ingredients” and “local legal and institutional barriers” as their biggest obstacles. Companies considering overseas expansion expressed strong demand for support related to advice on local laws, tax systems and hygiene regulations.

Based on the findings, the ministry said it plans to support the global establishment of K-dining through tailored assistance at each stage of overseas expansion, support linked to food ingredient exports and expanded provision of country-specific dining market information.

“Overseas expansion by dining companies is a key pillar in enhancing the competitiveness of Korean food culture and the broader food industry,” Jung Kyung-seok, the director general for food industry policy at the ministry, said. “We will support sustained growth through effective assistance that reflects voices from the field.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NAM SOO-HYOUN [[email protected]]