More people yielding to taste of China

A branch of the Taiwan-based bubble teahouse Gong Cha is seen in this photo. Gong Cha opened its first Seoul branch in 2012 and now has more than 200 branches throughout the nation. / Korea Times

Chinese franchises hit it big in Seoul

By Baek Byung-yeul, Kwon Ji-youn

In 1999, when Starbucks launched its first Korean branch in Seoul, few could have predicted the chain's dominance today. With more than 600 branches nationwide, Starbucks attracts 320,000 customers per day.

Chinese dessert franchises want to follow in the coffee chain's footsteps and capture the nation's food service industry in much the same way.

Kim Jin-joo, 23, has been a fan of Taiwanese bubble tea — a traditional tea mixed with milk and chewy tapioca balls — ever since she first tasted it during a visit to the Taiwanese city of Kaohsiung.

"With its wide range of flavors, I remember the bubble tea house was a lot of fun," the college student told The Korea Times. "Visiting teahouses became an essential activity for me and my friends."

Now Kim and her friends are regular customers at Seoul's bubble tea franchises. Her favorite is Gong Cha, which opened its first branch two years ago in Seoul's arts district near Hongik University. Now Gong Cha has more than 200 branches throughout the nation.

Customers wait in line to get their ice flakes with mango topping at a Taiwanese dessert franchise booth at the Hyundai Department Store's COEX branch, Monday. / Korea Times

Besides bubble teahouses, Kim said she and her friends also liked to visit Taiwanese mango ice flake cafes.

"Unlike local desserts, Taiwanese ice flakes have a distinct sweetness that is irresistible," she said.

Shim Eun-jae, 33, is looking into the possibility of starting up a Gong Cha cafe.

"Gong Cha definitely has name value," Kim said. "When the pearly dessert first came to Korea, only those who had tried it abroad were interested, but now it has become a sort of fad."

Though the franchise endured a wave of negative press when a customer claimed a piece of plastic had gotten lodged in her throat while drinking the beverage, Gong Cha no doubt was at the head of the bubble tea boom that began last year.

The drink remains popular this summer. Earlier, some cafes were accused of serving drinks with tapioca bubbles containing the potentially harmful additive maleic acid. Those pearls were imported from Taiwan.

"Thankfully, such criticism did not affect Gong Cha," she said, adding that its tapioca pearls were certified free of maleic acid by the quality-control body TUV Rheinland.

As Gong Cha continues to go viral here, other Taiwanese dessert franchises are scrambling to open branches in Korea.

CoCo Bubble Tea, another bubble teahouse franchise from Taiwan, launched its first Korean branch in May in Myeong-dong, Seoul's largest shopping district. Homibing, famous for its mango ice flakes, has four branches in Seoul, Gyeonggi Province and South Chungcheong Province.

Hai Di Lao, a famous Chinese food chain, known for its "huo guo" — a fondue-like dish made with different meats and vegetables — is also preparing to open its first branch in Myeong-dong next month.

Kim Sung-hyun, 37, a businesswoman living in Seoul, said she was looking forward to visiting Hai Di Lao's first Seoul branch.

"I visited the hot pot restaurant in Shanghai and left with a favorable impression of the restaurant because the service was top-notch and the food was great," Kim said.

Above all, Kim said she was impressed with the service.

"When I visited for the first time, I thought I wouldn't want to go back because I was worried that my clothes would become saturated with the strong scent of the huo guo," she said.

"But my worries turned out to be groundless. One of the restaurant employees asked me if I wanted to keep my jacket away from the dining table, so I left it with him."

Thanks to the restaurant's meticulous consideration, she was able to enjoy her meal without worrying about the smell.

"That was a big culture shock," she added. "Though I love to visit samgyeopsal (grilled pork) restaurants and Vietnamese pho noodle restaurants in Seoul, I try to avoid them during lunch hour because my clothes end up smelling like the food. But Hai Di Lao was different, and I am eagerly looking forward to the opening of its Seoul branch."

The restaurant was featured in the Harvard Business Review for its extraordinary service and its founder's innovative management style.

The food service industry is changing as a result of the enthusiasm Seoulites have expressed over the expansion of Chinese franchises.

"I would recommend such cafes and restaurants for those who may not be able to travel overseas this summer and are hoping for an exotic experience," Shim said. "It's another way to get a taste of China or Taiwan without leaving the city."

As more Koreans choose to take vacations in Seoul, Shim said, many are looking for ways to experience foreign lands without having to fly.

"I was aware that there were foreign enclaves here in Seoul, including ‘Little Tokyo' in Ichon-dong," she said. "This is just another way to enjoy China without having to spend so much money on flights and hotels."

Industry watchers predict that other Asian franchises will venture into the Korean market should Hai Di Lao succeed here. They point to the increasing number of Chinese visitors to Seoul as one factor.

About 432,000 Chinese visited Korea last year, including 327,000 tourists, surpassing Japanese visitors in number. This year, the number of Chinese tourists is expected to reach 400,000.

"This has created fierce competition among franchises already in Seoul, as well as those that are looking to start up here," said one industry watcher. "Existing franchises are very worried that their market shares will decrease as Myeong-dong fills up with franchises of Chinese origin.

"So many Chinese complain that the food here doesn't quite suit their palates," he continued. "It is a niche market that will undoubtedly continue to grow."