Domestic small and mid-sized, value-for-money franchise brands are expanding their presence in overseas markets on the back of the growing popularity of K-food. As K-content spreads and global demand rises across categories such as coffee and chicken, price competitiveness and locally tailored operating strategies are enabling not only large corporations but also mid- to low-priced franchises to increase their visibility abroad.

Craft beer franchise Saenghwal Beer announced on the 7th that it has signed an agreement to establish a joint venture (JV) with Cambodian distribution company HSC Group. The purpose is to develop a master franchise (MF) business in Cambodia and build a hub for Southeast Asia. HSC Group is a leading Cambodian distributor that has successfully operated global and Korean food service brands such as Burger King, Crystal Jade, and Paris Baguette. Leveraging this distribution network, Saenghwal Beer plans to spread the K-“chimaek” culture—combining chicken and beer—locally. It is also planning to establish a brewery targeting the wider Southeast Asian region.

Burger and chicken brand Mom’s Touch drew more than 100 people in an “open run” success on the first day of opening its first store in Vientiane, Laos, on the 27th of last month. Mom’s Touch has formed a local master franchise partnership with Kolao Group, Laos’ largest private conglomerate encompassing automobiles, finance, and distribution, and a Korea-affiliated company. Together with Kolao Group, Mom’s Touch plans to expand to six outlets within the year. It is also pushing ahead with entry into Thailand, Mongolia, and Uzbekistan.

Low-priced coffee brands are also moving overseas. Compose Coffee is operating three outlets in Singapore and is about to officially open its first store in Taiwan. It is also planning to enter Southeast Asian markets such as Vietnam and the Philippines. Mega MGC Coffee has secured eight outlets in Mongolia within two years of entry and has surpassed a cumulative 250,000 customers. Ediya Coffee entered Guam in 2023 and Malaysia in 2024, and this year is preparing to open outlets in Canada and Laos, as well as a second store in Guam.

The shift in focus by the food service industry toward overseas markets is underpinned by structural limitations in the domestic market. While domestic consumption has slowed and outlet expansion has been constrained by store-opening regulations, barriers to entry are declining abroad as K-content spreads and interest in Korean cuisine increases. The trend of global market expansion is also visible in the data. According to the “2025 Overseas Expansion Status Survey of Food Service Companies” released in February by the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corporation (aT), the number of overseas outlets has been on the rise, from 3,685 in 2023 to 4,382 in 2024 and 4,644 last year.

In the past, overseas expansion was led mainly by large franchises with strong brand recognition and capital, but in recent years, a generally more favorable perception of K-food has created an environment in which small and mid-sized franchises can also secure competitiveness. In particular, in Southeast Asia and Greater China, brands that combine price competitiveness with fast operating models are aligning well with local consumption patterns, resulting in rapid initial settlement, according to analysts.

Han Sang-ho, professor in the Department of Foodservice Management at Youngsin University, said, “Unlike Korea, which is close to saturation, Southeast Asia and other regions have large populations and strong growth potential,” adding, “Exposure to Korean brands has increased through K-pop and dramas, and as familiarity with Korean culture grows, it is raising the likelihood of success for K-food service brands.”

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