Korean burger market grows 15% in 2022 as brands get more diverse

Shake Shack burger [Photo provided by SPC Group]

The size of the burger market in South Korea hit nearly 4 trillion won ($3.1 billion) last year to become the most popular eatery among consumers that go for a diverse range in the menu offered by fast-food and premium chains.

According to an analysis by Euromonitor International on Sunday upon request by Maeil Business Newspaper, sales of burger joints reached 3.99 trillion won in 2022, up 15.7 percent from 3.45 trillion won in the previous year and the largest among the eateries.

Sales of chicken restaurants amounted to 9.15 trillion won last year, up 4.2 percent from 8.79 trillion won in the previous year, while those of bakeries and pizza outlets rose 4.2 percent each to 5.4 trillion won and 2.18 trillion won, respectively.

The restaurants all saw growth but below the inflation of 5.1 percent last year while burger joints grew above that level.

“The remarkable growth of the burger market is largely attributed to a shift in the perception about burgers from cheap fast food to premium food that consumers are willing to buy for even tens of thousands of won,” said an industry official.

Market insiders note that the perception change was prompted by the opening of the country’s first premium burger outlet by Shake Shack Inc. in 2015.

SPC Group, which owns Korea’s largest bakery chain, signed a deal with U.S. premium burger chain Shake Shack to bring the brand to Korea in December 2015. The retailer opened the first store in Gangnam District, southern Seoul in July 2016. There are 25 Shake Shack stores in Korea. They offer burgers, fries, and drinks for about 20,000 won altogether, which is double that of regular fast-food franchise burgers.

There is growing competition in the high-end burger market.

Gordon Ramsay burger [Photo provided by Gordon Ramsay Restaurants]

British star chef Gordon Ramsay partnered with a Korean company to open the first Gordon Ramsay Burger restaurant at Lotte World Mall located in Jamsil, southern Seoul, in January last year. On the menu are hamburgers priced up to 140,000 won.

Last month, the chef also launched the more affordable “Gordon Ramsay Street Burger” brand that offers hamburgers for 10,000 won and more when including side dishes.

Korean chicken franchise company BHC Co. also introduced Super Duper Burgers from San Francisco to Korean consumers in October last year. It opened the first store in Gangnam just across from the first Shake Shack store. BHC is also preparing to open a Super Duper Burgers store in Hongdae in northern Seoul and inside COEX in Samseong-dong, southern Seoul, this year.

Hanwha Galleria Co. will also open the first Five Guys store near Gangnam Station in June. Five Guys is one of the top three burger franchises in the U.S. along with Shake Shack and In-N-Out.

Competition is also fierce in the mid-priced burger market.

Lotteria Co., a local hamburger franchise, saw its sales grow 15 percent last year. It sells a “Healthy Lunch” set from 11 a.m. to 2 p.m. for a minimum 4,000 won.

The number of Frank Burger stores has also surpassed 500 last year while that of No Brand Burger operated by Shinsegae Food Co. 200 recently. Popeyes, which withdrew business in Korea in 2020, reopened a store in Korea last year amid the growing demand for burgers.