By Jane Han
Staff Reporter
The sudden bankruptcy of the U.S. family restaurant franchise Bennigan's and the downsizing announcement of Starbucks have consumers in Korea wondering if popular foreign chains will soon start vanishing from the domestic scene.
The chains say no, adding Asia is considered one of the most lucrative markets by upper management. This seems true according to latest developments.
Starbucks might have suffered a third-quarter loss last year, but its international revenue rose 24 percent, far higher than its 6-percent growth in the United States.
Within three years, more than 40 percent of Starbucks outlets will be outside the U.S. from 29 percent now, BusinessWeek cited a company spokeswoman as saying.
The same goes for McDonald's. The fast food giant saw better-than-expected net profit in the second quarter thanks to strong international sales. Asia-Pacific sales jumped 8.8 percent, higher than just above 3 percent in the United States.
``I feel lucky to be part of the Asia team because we're posting pretty strong numbers unlike other parts of the world,'' said one executive of an international restaurant franchise, who asked not to be named.
So far so good, but the question is how long can it last?
Some critics say the domestic restaurant chain market is already nearing saturation.