Five Guys·Super Duper... The Heating 'Burger War'

4 Trillion Won Market... Expected to Grow Further
Premium Trend Driven by the Spread of Value Consumption

Photo by Getty Images Bank

[Asia Economy Reporter Moon Hyewon] Competition in the domestic hamburger market is becoming increasingly fierce. The overall delivery food market, including burgers, has grown since the spread of COVID-19, and recently, the addition of a ‘premium’ trend has further expanded the market.

According to the industry on the 11th, Galleria Department Store recently signed an agreement with Five Guys International regarding domestic business rights. Five Guys is a brand that originated in Virginia, USA, in 1986, and its first store in Korea is scheduled to open in the first half of next year.

Five Guys is considered one of the top three American burger brands alongside Shake Shack and In-N-Out. It is famous for having no freezer, timer, or microwave in the kitchen, and it makes patties fresh daily using fresh ingredients. Also, its French fries are characterized by cutting fresh potatoes and frying them in peanut oil.

Although specific prices have not yet been decided, considering that in the US stores, single burgers are sold for $6 to $8, French fries for $4 to $5, and carbonated drinks like cola and cider for about $2, the burger set combining these is expected by the industry to be priced in the mid-to-high 10,000 KRW range to the low-to-mid 20,000 KRW range. Galleria Department Store plans to open more than 15 stores domestically over the next five years. All stores will be operated as directly managed outlets.

In the domestic hamburger market, franchises such as Lotteria, McDonald’s, Burger King, and Mom’s Touch, which have traditionally led the market, maintain a strong position, while premium handmade burgers like SPC Group’s Shake Shack and Jingyeong Industry’s Gordon Ramsay Burger have entered the market, expanding the scene. SPC Group, which opened the first Shake Shack near Sinnonhyeon Station in 2016, recently opened its 20th store in Cheonan. It aims to open more than 25 stores by 2025.

Last year, ‘Gordon Ramsay Burger,’ a burger restaurant launched by British star chef Gordon Ramsay, opened its first Asian store at Jamsil Lotte World Mall through Jingyeong Industry. The ‘1966 Burger,’ made only 60 pieces daily, continues to sell out every day despite its high price of 140,000 KRW. The second and third stores are planned to open sequentially within the second half of this year.

Recently, ‘Good Stuff Eatery,’ known as the ‘Obama Burger,’ also established a location near Sinnonhyeon Station, and bhc Group is preparing to open the first ‘Super Duper’ store near Sinnonhyeon Station within the second half of this year.

According to Euromonitor, a global market research firm, the size of the domestic hamburger market, which was 1.9 trillion KRW in 2013, jumped to 2.96 trillion KRW in 2020 and is estimated to have grown to about 4 trillion KRW last year. There are also forecasts that it will expand to the 5 trillion KRW range in 2023.

An industry insider analyzed, “Unlike the past when it was considered cheap ‘junk food,’ the premium strategy of some brands aligns with the latest food culture that prioritizes value consumption, leading to overall market growth.”

This content was produced with the assistance of AI translation services.