Burger chains race to open stores as value-conscious MZ generation drives growth

Major burger brands are pressing ahead with aggressive store expansion, riding steady growth as budget-conscious diners increasingly turn to burgers for an affordable meal.

Major burger franchise chains — McDonald's, Burger King, Mom's Touch and No Brand Burger — are accelerating new store openings this year, industry sources said Thursday. The chains are deploying increasingly refined expansion strategies, distinguishing between large and small formats by commercial district and introducing AI-based location analysis systems.

McDonald's Korea is expanding toward a target of 500 domestic locations by 2030, up from roughly 400 currently. When scouting new sites, the company examines population figures and worker counts within a 1- to 3-kilometer radius. Some 90 percent of the more than 30 stores opened over the past three years have been drive-through locations. Underperforming stores are being closed or relocated, and more than 20 locations were renovated last year alone.

Mom's Touch operated 1,488 stores as of June. In April, the chain introduced an AI-based intelligent commercial-district management system, converting three decades of site-selection expertise into a data asset. The brand is moving beyond its traditional base of small stores in alleyway commercial zones and university districts, expanding into large-format locations in prime areas such as Gangnam-daero, Myeong-dong and Gwanghwamun. It has also introduced drive-through and drive-in formats. Mom's Touch believes it can grow its network to more than 2,200 stores over the medium to long term.

Burger King has set a target of opening 50 new stores this year, focusing on its established large-format locations of around 165 square meters, with plans to add 18 more by the end of July. No Brand Burger has taken a different approach with a "small and compact" store strategy — startup costs run at about 60 percent of those for a conventional outlet. Last month, the brand entered Jeju Island for the first time in the six years since its launch, and it plans to open four to five additional stores on the island this year.

Premium burger brands are also expanding their footprints. Shake Shack, marking its 10th year in South Korea, now operates 36 stores nationwide, having met ahead of schedule its earlier goal of opening 25 locations by 2025. Five Guys recently opened a new store in Daechi-dong, Gangnam-gu, Seoul. Last November, it also opened at the Shinsegae Simon Yeoju Premium Outlets, extending its reach into suburban commercial districts.

"As sales grow — driven particularly by the value-oriented MZ generation — increasing touchpoints has become the core of our growth strategy," an industry official said. "Location matters, but there is a growing emphasis on space marketing that can capture a young sensibility."