Popeyes' return to heat up competition among multinational franchises

Popeyes' new restaurant in Gangnam, Seoul / Courtesy of Silla

By Kim Jae-heun

American fried chicken franchise Popeyes is set to open a new store in southern Seoul next week, spicing up the competition between global chicken and burger restaurant chains here, according to industry officials, Friday.

Silla, a deep-sea fishing company, said it signed a master franchise agreement with Restaurant Brands International to bring back the Louisiana-style chicken restaurant two years after the plug was pulled on its business here in December 2020.

Popeyes Korea once operated nearly 200 restaurants in Korea, but after COVID-19 hit the country and competition in the local dining market intensified, the number of stores was reduced to 10 in the second half of 2020.

Silla sees potential for Popeyes to regain its popularity, as fried chicken franchises are growing fast in the quick service restaurant sector.

“Chicken is one of the largest and fastest-growing categories in the Korean quick service restaurant sector. We will provide the taste of memories and Louisiana's unique menu to customers who miss Popeyes,” a Silla official said.

However, the chicken and burger restaurant franchise market here is already in a fierce battle.

Local franchise firm bhc brought the San Francisco-style handmade burger restaurant Super Duper to Gangnam last month. Hanwha Group's Galleria Department Store is also launching the country's very first Five Guys hamburger diner in Seoul in the first half of next year.

In addition, British star chef Gordon Ramsey opened a premium hamburger restaurant in southeastern Seoul's Jamsil in January, and American fast casual restaurant chain Shake Shack is already running over 20 stores in the country since its entry here in 2016.

“It's not going to be easy for Popeyes to bring back its glory days it enjoyed in early 2000s. There are too many global franchise restaurants that have opened their first stores in Seoul and some are already seeing losses,” a local food firm official said.

According to Euromonitor, the size of the domestic burger market grew from 1.9 trillion won ($1.46 billion) in 2013 to 2.8 trillion won in 2018. It is expected to reach 3.49 trillion won this year.