By Jane Han
Staff Reporter
When McDonald's opened its first chain in Apgujeong-dong, southern Seoul, 20 years ago, the world's biggest fast food chain and Seoul's leading fashion district were both different from what they are today. The two grew together until last year, when McDonald's decided to take a new turn.
The President of McDonald's Korea, Ray Frawley, met with The Korea Times, Monday, a day before the 20th Anniversary press conference, to talk about the burger joint's past two decades and future business here.
``We're constantly looking for ways to improve our business,'' he said, referring to the recent shutdown of shops, including the closure of its flagship and most representative location in Apgujeong-dong last year. ``At times, those aggressive decisions and changes are needed.''
Since opening in the spring of 1988, the American icon expanded its local presence to more than 350 chains nationwide at its peak in 2002. But a combination of the popular ``well-being'' trend and a mad cow scare dragged down sales, forcing downsizing over the past two to three years.
While the immediate cutbacks sent messages that the burger giant's domestic operation would continue to shrink, Frawley, who joined the Korea team in 2005, said it was only a redirection of strategy.
``We've started opening new restaurants again, and our business is seeing a double-digit growth,'' he said, adding that U.S. headquarters continues to see ``tremendous potential here.''
As part of the new strategy, McDonald's introduced the popular McMorning breakfast menu, premium coffee, cushioned seats, 24 hour operation, drive-thrus and even delivery services in limited locations.
Frawley said the burger chain, which currently runs some 230 shops here, is seeking to increase the figure to 500 in the long run. Its competitor Lotteria, a homegrown burger joint, operates 744.
``Korean people like to eat out, try different foods and there's a large population here of 48 million ― this is a good market for us,'' he said. ``All the ingredients are here in the culture and society.''
When asked about the changes in menu, Frawley said, ``We're constantly asking ourselves, `What are our customers buying and not buying?'''
He said, ``Although Big Macs will always be there, we're very critical about evaluating our other menu items.''
Since its kickoff 20 years ago, McDonald's has sold over 1.773 billion Big Macs to local eaters.