McDonald's returns to Seongsu-dong after 3 years, igniting burger wars

Franchise burger chains are gearing up for a showdown in Seongsu-dong, one of Seoul's most coveted commercial districts.

McDonald's Korea is preparing to open a new store near Exit 4 of Seongsu Station on Seoul Metro Line 2, according to industry sources Saturday. The chain recently posted job listings for staff at the Seongsu location, signaling that an opening is imminent.

The move marks McDonald's return to the Seongsu market for the first time in three years, having withdrawn in 2023 when E-mart's Seongsu branch closed. The chain is now pushing back into the area as a surge in foreign tourist arrivals has cemented Seongsu-dong's status as a trendsetting destination.

Competition in the area is already fierce. Shake Shack operates a store about 300 meters from the planned McDonald's site near Seongsu Station, while Lotteria is open near Exit 2. No Brand Burger and Burger King are located roughly 400 meters from Exit 4.

Burger chains have been rolling out experiential stores in Seongsu-dong in quick succession. Burger King's new location, set to officially open Sept. 10, will be the world's first flagship store under the "Flame Ground" concept, featuring three signature menu items and a fine-dining course called "The Gastro" — a menu that reimagines Whopper ingredients as elevated dishes — priced at 89,000 won ($64) per person.

No Brand Burger's "Seongsu Lab" store has been a hub for collaborative content. From July through August, it ran a pop-up with non-alcoholic beer brand Cass Zero centered on the theme of burgers and beer. In June, it briefly sold two limited-edition menu items developed in partnership with Ottogi Tabasco.

"Seongsu-dong is where young people from Korea and abroad who want unique experiences gather," an industry official said. "All kinds of experiments that break from conventional store operations are happening there."

Competition among burger chains is intensifying. Rising prices have pushed more consumers toward burgers as an affordable meal option.

The growing demand is reflected in earnings. McDonald's Korea posted sales of 1.43 trillion won and operating profit of 73.2 billion won last year, up 14.5 percent and 523 percent, respectively, from the previous year. Lotte GRS, which operates Lotteria, recorded sales of 1.12 trillion won and operating profit of 51.1 billion won, gains of 12.4 percent and 30.6 percent over the same period. It was the first time since 2017 that Lotte GRS had surpassed 1 trillion won in sales. BKR, which operates Burger King, posted sales of 892.2 billion won and operating profit of 42.9 billion won.

Most recently, the battleground has shifted to breakfast. McDonald's, which has run its "McMorning" breakfast menu since 2006, added burgers to its morning lineup, while Burger King expanded its breakfast offerings from late July, more than doubling the number of stores serving the morning menu.