Fast-food restaurants in Korea are increasing drive-throughs as demand for the convenient service is growing in line with a rise in car ownership. Out of McDonald’s 311 restaurants in Korea, 114 have drive-throughs

October 8, 2013 Leave a comment

2013-10-07 18:18

More stores embrace drive-through sales

By Park Ji-won
Fast-food restaurants are increasing drive-throughs as demand for the convenient service is growing in line with a rise in car ownership. American fast-food franchise McDonald’s had 311 restaurants in Korea as of Sept. 17, 114 of which have drive-throughs. It has been increasing its drive-throughs since 2010, opening 22 of them this year.A drive-through is a type of establishment that allows customers to order and pick up products or services without leaving their cars. It was first introduced in the United States in the 1930s.
“McDonald’s has been expanding this platform in line with its customers’ changing lifestyles as shown by the rising number of cars,” explained Ryu Ji-eun, an official at McDonald’s Korea.
The expansion is part of the firm’s overall strategy in Korea.
“It is part of our future strategy to include drive-throughs in up to 70 percent of all McDonald’s stores in Korea by 2015,” said Country Managing Director Joe Erlinger during a news conference in June.
Likewise, Lotteria, the fast-food franchise of Lotte Group, opened its 29th drive-through in May in Haeundae, Busan.
“Lotteria’s business strategy of drive-throughs isn’t the same as that of McDonald’s. We provide it for increasing customer’s satisfaction in a bid to diversify our services,” an official at Lotteria said.
At Lotteria, individual store owners have the authority to provide drive-through service.
Angelinus, a coffee shop franchise of Lotte, introduced six drive-through stores as of Sept. 27 since June 2012. The firm added three of the six this year.
It was the first coffee shop to open the drive-through facility.
“The firm is putting efforts because we are interested in making unique stores,” official Yoon So-yeon said.
CU, the No.1 convenience store by store numbers, also opened a drive-through store in August 2012 as a test case to determine the profitability of the new business.
“When I am in a hurry and do not want to get out of the car, I drop by a drive-through because I can get my meal faster than when I walk into a restaurant,” said 27-year-old office worker Yoo Woong-chae.
A rapid rise in car ownership is driving the new trend.
According to data from the Ministry of Land, Infrastructure and Transport, the number of registered cars rose significantly over the past decade from 14.50 million in 2003 to 18.87 million last year, showing an increase of 29 percent. The ministry anticipates the figure will reach some 20 million in 2015.
“The move to introduce drive-throughs is seen as an expansion strategy by leading franchise companies,” Daishin Securities analyst Ian Chung said. “Drive-throughs could be a good solution to boost sales in the sluggish industry,” Chung added.

Filed under Macro Trends

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