First-generation tteokbokki chains losing ground as Yeopgi rises

The fortunes of first-generation tteokbokki franchise brands that once led South Korea's snack food market are diverging sharply. As Dongdaemun Yeopgi Tteokbokki tightens its grip on the market, rivals including Jaws Tteokbokki, Attal and Gamtan Tteokbokki are struggling with shrinking store counts and deteriorating profitability.

Hot Seasoner — the operator of Buldak Bal Ttaengcho Dongdaemun Yeopgi Tteokbokki — ran 698 stores last year, according to industry data. Since launching its franchise business in 2013, the chain has grown steadily, from 602 stores in 2023 to 659 in 2024. Sales last year reached 144.6 billion won ($105 million), up 17.5 percent from 123 billion won the year before.

First-generation brands, by contrast, are clearly losing ground. Jaws Tteokbokki, which began franchising in 2010, has seen its store count fall from 180 in 2023 to 138 in 2024 and 108 last year. Contract terminations surged to 37 last year, compared with nine in 2023 and 11 in 2024. Sales last year dropped 31 percent to 8.9 billion won from 12.9 billion won the previous year, while the chain posted an operating loss of 2.8 billion won and a net loss for the period of 5.9 billion won.

Attal's decline has been even faster. After launching its franchise in 2015 and briefly winning fans as the first snack food chain to run television commercials, the brand became entangled in litigation over its name during a divorce between its founders, and the business contracted sharply. Store numbers hovered between 18 and 20 from 2022 through 2024. In 2024, the chain recorded sales of 1.2 billion won, operating profit of 600 million won and net profit for the period of 500 million won.

Gamtan Tteokbokki has followed a similar trajectory. The brand was launched in 2017 by the husband in the Attal divorce, who rebranded and continued operating after the split. Store numbers fell from 211 in 2023 to 182 in 2024 and 146 last year, with only one new opening last year against 37 contract terminations. Sales rose 39 percent to 11.4 billion won last year from 8.2 billion won the year before, but profitability worsened — the chain swung to an operating loss of 936 million won.

Sinteon Tteokbokki, which began franchising in 2011, is also shrinking. Its store count declined from 722 in 2022 to 702 in 2023 and 671 in 2024, and its website currently lists 637 locations. Sales in 2024 were roughly flat year-on-year at 44.5 billion won, but operating profit collapsed 81.7 percent to 5 billion won from 27.4 billion won the previous year.

Some first-generation tteokbokki brands are looking abroad for growth. Sinteon Tteokbokki is a leading example, currently operating 20 overseas stores and expanding its franchise presence in Japan, Kuwait, Australia, Canada, Malaysia and the Philippines.

Dukki, which launched its franchise in 2015, is also riding the K-food wave. The chain currently operates 154 stores in Vietnam, 35 across the rest of Southeast Asia, three in North America and three in Oceania — a total footprint spanning 13 countries. It plans to open a new store in Mongolia in October. Operating profit last year rose 6.4 percent to 6 billion won from 5.7 billion won the year before.

Industry insiders say overseas expansion will be the defining factor for growth as a generational shift reshapes the snack food franchise sector. "With so many new franchise concepts emerging, the snack food industry is going through a natural process of decline," one industry official said. "However, as global interest in Korean snack food grows, brands that pursue overseas business have significant growth potential."