Competition over premium burger market heats up in Korea

Customers wait in line to enter Busan's first Shake Shack restaurant that opened on July 11, 2019. Courtesy of SPC Group

By Kim Jae-heun

The competition is heating up over the country's rapidly growing premium burger market, as local consumers are willing to pay more for high-quality fast food, according to fast food industry officials Sunday.

According to the market research company Euromonitor International, the size of the hamburger market here hit 2.96 trillion won in 2020, up by 28.6 percent from 2.3 trillion won ($1.89 billion) in 2015. In 2021, the market reached 4 trillion won as more fast food franchises launched premium burger brands attracting an increasing number of young fast food lovers.

SPC Group pioneered the premium hamburger market by bringing the U.S. fast casual restaurant chain Shake Shack here six years ago. Its popularity has continued as it introduces new burgers every year, and SPC now operates 20 branches across the nation.

In January, renowned British chef Gordon Ramsay brought his burger restaurant brand, named simply “Gordon Ramsay Burger,” to Seoul. The lavish burger joint's prices range from 30,000 won to 140,000 won. Despite the hefty prices, over 2,000 people visited the restaurant in a pre-opening event held from Dec. 30 to Jan. 7. The reservations for Gordon Ramsay Burger are fully booked for a month currently.

Models introduce No Brand Burger's two new menu items, last May 20. Courtesy of Shinsegae Food

In addition, bhc, Korea's second-largest fried chicken franchise by sales, plans to introduce the U.S. burger chain Super Duper to Korea in June, opening its first store here in southern Seoul's Gangnam District, the same area where Shake Shack opened its first store. Super Duper is one of the most well-loved regional fast food chains in the U.S. West Coast, along with In-N-Out Burger.

“The premium hamburger market has been growing fast recently as more consumers are looking for a variety of quality foods. Bhc is looking to become an integrated enterprise in the food business, and opening burger specialty stores is part of our efforts to diversify our business portfolio,” a bhc official said.

The fried chicken franchise is also reviewing the introduction of a hamburger restaurant in collaboration with Outback Steakhouse, but the official added that nothing has been confirmed yet.

Another food firm Shinsegae Food is seeking opportunities in the niche market with its private brand No Brand Burger, which sells cost-effective meals. E-mart successfully expanded its business to open 170 restaurants and it plans to open 80 more within this year.

“We target different customer groups with other premium burger brands but it is a good sign that the market is growing. People don't regard hamburgers just as fast food anymore, and they have become a fine dining option. I see a bright future for the hamburger market here as people in various age groups are enjoying the food these days,” a Shinsegae Food official said.