While the restaurant industry has been sluggish lately due to weak domestic demand, the leading tteokbokki franchises have held their ground. Tteokbokki franchise companies, buoyed by the popularity of K-food, are actively expanding not only their domestic outlets but also their overseas presence.
According to the Fair Trade Commission on the 19th, "Dongdaemun Yeopgi Tteokbokki," a flagship tteokbokki franchise, posted an average franchisee sales of 879.66 million won last year. That exceeds Kyochon Chicken, which had the highest average franchisee sales among chicken franchises at 727.26 million won. The number of franchise locations rose each year from 552 in 2022, to 602 in 2023, to 659 currently in 2024. It is expected to surpass 700 within this year. Overseas expansion is steady as well, including Canada, the United States, Australia, China, Vietnam, and Thailand. Its meal-kit products once gained popularity overseas as people used them to take on spicy-food challenges. According to the Financial Supervisory Service's electronic disclosure system, last year's operating profit for operator "Hotseasoner" was 5.1 billion won, up 89% from the previous year's 2.7 billion won.
"Dookki," an instant tteokbokki brand, is a franchise operated by "Dareun" Co., Ltd. It is pursuing overseas expansion more actively than any other tteokbokki franchise. As of last year, it operated about 250 stores in Korea and 183 stores across 12 countries overseas. It has signed master franchise agreements with local partners in Southeast Asia, the United States, Australia, and Singapore. It is targeting more than 500 stores worldwide. Customers can choose ingredients and cook according to their preferences, and the company develops menus in line with trends and conducts aggressive marketing. Dareun's operating profit last year was 5.7 billion won, up 11.8% from 5.1 billion won the previous year.
"Sinjeon Tteokbokki," a long-running brand, has the most franchises in Korea. It operates 818 stores nationwide. Although the number of franchise locations fell in 2023 from the previous year, it began increasing again last year. Last year's sales came to 17.9 billion won, up 44% from a year earlier. However, due to higher delivery fees and materials and supplies costs, operating profit fell 16% to 3.5 billion won. Sinjeon Tteokbokki currently has about 18 overseas franchise locations. It is expanding its footprint with nine in Australia, five in Japan, and two in North America. In February this year, it opened its first store in Kuwait.
Tteokbokki franchises have strengths that favor start-ups, thanks to low ingredient costs and fast turnover. Initially, there was talk that the soft texture of rice cakes would not suit foreign palates, but a spicy-food craze has spurred active overseas expansion. In particular, because sauces and toppings allow for diverse variations, it is relatively easy to tailor flavors to local tastes overseas.
With the rising popularity of K-food and various fusion items such as rosé and mala, the sector is expected to push more aggressively into overseas markets. An official at a tteokbokki franchise said, "Localization of sauces and other elements worked well, allowing us to proceed successfully with overseas expansion," adding, "Riding the popularity of K-food, we aim to broaden the base of the tteokbokki industry by entering new countries."