Lotte GRS unveils first rebranding of Lotteria in 12 years

Lotteria’s new BI. [Courtesy of Lotte GRS]

Lotte GRS announced a comprehensive rebranding strategy for its burger franchise business in a move to revitalize its brand and boost consumer appeal. The overhaul, the first in 12 years, aims to shed its outdated image and invigorate its market presence both in South Korea and internationally. The company has set an ambitious sales target of 1 trillion won ($1 725 million) for 2024.

Lotte GRS introduced a new brand slogan, “Taste The Fun,” on Thursday along with a revamped brand identity (BI) image. The menu names have also been refreshed, incorporating “Ria’s” derived from Lotteria to enhance the brand’s uniqueness.

The new BI emphasizes a refined and sophisticated image, reflecting Lotteria’s status as a leading hamburger franchise in Korea. The redesigned minimalist logo could also improve the company’s versatility to enter new global markets. Lotteria’s strategy focuses on strengthening brand recognition, building a cohesive identity, and increasing global market adaptability. The new BI will be implemented in store graphics and product illustrations, with its first introduction in Korean stores in September 2024, followed by an expansion to international outlets.

Menu items will prominently feature “Ria’s,” highlighting the brand’s distinctive character. Popular items such as the Bulgogi Burger and Shrimp Burger will be renamed “Ria’s Bulgogi” and “Ria’s Shrimp.” Future services and promotions will also integrate the “Ria’s” branding.

[Courtesy of Lotte GRS]

The rebranding effort is seen as a key component of internal restructuring led by CEO Cha Woo-chul. Known for his expertise in audit and business system improvements, Cha spearheaded a series of high-intensity measures to overcome Lotte GRS’s performance challenges since taking office. Under his leadership, Lotte GRS has closed underperforming stores, leading to a reduction in Lotteria’s Korean outlets from 1,326 in 2021 to 1,288 in the first quarter of 2024. The company’s annual revenue, which had plummeted to 663.6 billion won in 2020, rebounded to 924.2 billion won in 2023 and sales increased by 8.8 percent on-year to 238.3 billion won in the first quarter of 2024. Lotteria remains a crucial brand, accounting for approximately 70 percent of Lotte GRS’s revenue.

The rebranding is also intended to facilitate Lotteria’s international expansion. Currently operating in Myanmar, Laos, Cambodia, Mongolia, and Vietnam, Lotteria plans to enter the U.S. market in 2025, starting with Los Angeles. This will mark the company’s first direct entry outside of Asia, as Lotte GRS previously used master franchise agreements for its international operations except in Vietnam.

Lotte GRS established Lotte GRS USA in October 2023, with the creation of a store operation entity in California following in February 2024, which all signaled the start of preparations for its first U.S. location. Lotteria has also participated in the NRA Show, the world’s largest foodservice trade show that takes place in Chicago, for two consecutive years, where it held tastings of its Bulgogi Burger to gauge global demand.