K-Food Chains Rapidly Expand Overseas Using Local Master Franchises, But Brand Control Remains Key
Creatrip Team
24 days ago
South Korean restaurant brands are accelerating overseas expansion largely through Master Franchise (MF) partnerships, which let local partners use their capital, infrastructure and market knowledge to open stores quickly. As of Q2 2026, 203 Korean food companies operated abroad (228 brands, 5,188 stores), with 200 using MF arrangements versus 70 direct investments. Major examples include Lotteria (LotteGRS), Mom’s Touch, BBQ and bhc working with local groups in Southeast Asia. Headquarters typically retain control over brand identity, core menus/recipes, and approved ingredient suppliers, while local partners handle store development, staffing and marketing. To ensure consistency, firms set strict partner selection criteria, require approved supply chains (including halal considerations), run pre-opening training (e.g., “chicken university”), regular audits, and enforce penalties—up to contract termination—for serious or repeated violations. As more countries and partners join, the main challenge is balancing necessary localization with consistent global quality and brand standards.
