Korean Burger Market Scales Up to 5 Trillion Won... Why Is Iconic In-N-Out Hesitant to Enter?

Adhering to the "No Frozen Ingredients" Principle
Minimizing Global Expansion to Maintain Quality
Negotiation Opportunities Remain Due to Compact Territory and Advanced Logistics Network

As the domestic hamburger market has grown to a 5 trillion won scale, In-N-Out Burger, an iconic brand from the western United States, remains cautious about entering the Korean market. While Shake Shack and Five Guys have both launched in Korea and led the trend toward premium burgers, industry analysts say In-N-Out is holding back on expansion to maintain quality, adhering to its principle of "no frozen ingredients." The food service industry is reportedly not ruling out the possibility of In-N-Out's official entry in the future and has proposed introducing the brand.

According to industry sources on October 17, In-N-Out held a pop-up store in Cheongdam-dong, Gangnam-gu, Seoul, the previous day, selling a limited 450 servings of burgers. The pop-up store opened at 11 a.m. and operated for only four hours, but by around 10 a.m., the 500-person entry limit had already been reached, resulting in a massive turnout.

The pop-up event attracted merchandise planners (MDs) from department stores and the food industry, drawing significant attention. Since In-N-Out Burger has not yet officially entered Korea, it is said that there have been numerous offers from the domestic distribution industry to bring the brand in.

Founded in California in 1948 by Harry and Esther Snyder, In-N-Out is now managed by their granddaughter, Lynsi Snyder. Although it has a longer history than Shake Shack (founded in 2004) and Five Guys (founded in 1986), it operates only about 350 stores, primarily in the western United States. The founding family has maintained management control, strictly adhering to a "quality-first" principle.

"No frozen ingredients."

The philosophy at In-N-Out is simple. Patties are never frozen and are only stored refrigerated, and French fries are made by slicing whole potatoes to order and frying them immediately. For this reason, stores are only opened within a distance where fresh ingredients can be delivered the same day. This is why the company is cautious about overseas expansion.

In Korea, In-N-Out has held five pop-up stores since 2012, occurring every two to three years, but has never opened a permanent location. These pop-up stores are operated directly by the U.S. headquarters, with ingredients flown in from the United States to maintain the freshness principle.

The industry views In-N-Out's ongoing pop-up stores as a strategic move to defend its trademark rights. Under current trademark law, if a registered trademark is not used for three years, anyone can file for its cancellation. In-N-Out has already registered its trademark in Korea and is believed to be maintaining its legal validity by regularly holding pop-up events to prove "actual use."

Yonhap News Agency

However, industry consensus is that it is difficult to completely rule out the possibility of In-N-Out entering the Korean market. In particular, Korea's small geographic size and dense logistics infrastructure are seen as well-suited to In-N-Out's operational philosophy of maintaining a "fresh delivery network."

Some observers note that if a company actively seeking new business opportunities offers favorable terms, negotiations could proceed quickly. A notable example is Vice President Kim Dongseon, the third son of the Hanwha Group chairman, who brought Five Guys to Korea. An industry insider said, "In the past, major domestic distribution companies, including Lotte, have reportedly offered significant sums to In-N-Out to introduce the brand. Although high inflation has dampened consumer spending, overseas burger brands remain attractive."

Meanwhile, according to global market research firm Euromonitor, the size of Korea's hamburger market has more than doubled from 1.9 trillion won in 2013 to 5 trillion won last year.