BBQ, which had scaled back its operations in China following the THAAD missile defense system controversy, is now making a comeback. After signing master franchise agreements with partners in major Chinese cities last year, the company has reopened over 50 locations this year as part of its expansion efforts.
As of June 17, Genesis BBQ has resumed operations at more than 50 locations in China. This follows the signing of master franchise agreements in key cities such as Beijing, Qingdao, Jinan, Shenzhen, Xiamen, Wuhan, Xi'an, and Chengdu last year.
A master franchise allows local companies to invest and operate while the headquarters provides brand and operational expertise. This model is favored by global franchise companies due to its lower initial investment and faster store expansion compared to direct ownership.
BBQ entered the Chinese market in 2003 and once operated over 400 locations. However, business contracted after the THAAD deployment in 2016 strained relations between China and South Korea, leading to the closure of most stores.
The recent push to expand in China is attributed to changes in the local market environment. The growing influence of Korean content, such as K-dramas and K-pop, has increased interest in Korean food, improving conditions for restaurant franchises. According to the Ministry of Agriculture, Food and Rural Affairs, South Korea's agricultural and food exports to China rose by over 15% in the first four months of this year compared to the same period last year.
BBQ is also enhancing its local marketing efforts, having appointed popular actor Lee Min-ho as its advertising model across China in January. The company aims to secure 1,000 stores in China in the long term. If successful, this could boost BBQ's international expansion, which currently includes over 800 overseas locations in 57 countries.
A BBQ representative stated, "China is characterized by rapid brand expansion once established. While we need to monitor the situation, we are seeing positive trends. It is one of the markets we have high expectations for, alongside the United States."
BBQ is not alone in its renewed focus on the Chinese market. Kyochon Chicken also signed a master franchise agreement with a restaurant company in Jilin Province last September and is expanding its local operations. As of the first quarter of this year, Kyochon Chicken has 18 stores in China.
However, the experiences from the THAAD controversy remain a potential risk for businesses entering the Chinese market. An industry insider noted, "China is a market that domestic companies find hard to give up due to its size, but we must always be aware that political and diplomatic factors can rapidly change the business environment."
* This article has been translated by AI.
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