BBQ, which had scaled back its operations in China following the THAAD missile defense system controversy, is 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, signaling an expansion of its local business.
According to industry sources on June 17, Genesis BBQ has resumed operations at more than 50 locations in China this year. 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 the 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, following the deployment of THAAD in 2016, relations between China and South Korea soured, leading to a significant reduction in business and 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 cultural content, such as K-dramas and K-pop, has increased interest in Korean food, and conditions for restaurant franchises have improved. According to the Ministry of Agriculture, Food and Rural Affairs, South Korea's agricultural 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 selected popular actor Lee Min-ho as its advertising model across China. The company aims to secure 1,000 locations in China in the long term. If successful, this could accelerate BBQ's international expansion, which currently includes over 800 overseas locations across 57 countries.
A BBQ representative stated, "China has a characteristic where once a brand establishes itself, it spreads quickly. While we need to observe the situation, there are positive trends emerging. It is one of the markets we are most optimistic about, 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 has begun expanding its local operations, with 18 Kyochon Chicken locations currently in China as of the first quarter of this year.
However, the experiences from the THAAD controversy remain a potential risk for entering the Chinese market. An industry insider noted, "China is a market that domestic companies find hard to give up due to its scale, but we must always keep in mind that the business environment can change rapidly due to political and diplomatic factors."
* This article has been translated by AI.
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