SPC Group (Sangmidang Holdings Group) is again moving to expand overseas dining brands, putting forward the leading U.S. Mexican food brand "Chipotle." With a location at The Hyundai Seoul in Yeouido seen as likely and core commercial districts such as the Gangnam Station area also under review, attention is focusing on how this strategy will perform going forward.
According to the related industry on the 19th, Big Bite Company, an SPC Group affiliate, is reviewing The Hyundai Seoul and the Gangnam Station area as early as the first half of this year for Chipotle's first store in Asia and first in Korea. The specific location and opening timeline are in internal coordination.
As the possibility of opening at The Hyundai Seoul emerges, attention is again turning to the case of Eggslut, a Los Angeles (LA)-based sandwich brand that used a similar rollout strategy. Eggslut opened its first store at Starfield COEX Mall in 2020 and its second at The Hyundai Seoul the following year, achieving initial success.
Eggslut subsequently expanded stores, including Hannam and Bundang Jeongja locations, on word of mouth, but it failed to secure a differentiated presence among burger and sandwich franchises at home and abroad. Ultimately, after repeated poor results, it wound down its Korea business in 2024.
SPC Group has expanded its dining business by establishing Dunkin, Baskin-Robbins, and Shake Shack in Korea, but the Eggslut case showed that bringing in globally famous brands does not necessarily lead to long-term success. Analysts say a vague price point, a limited customer base, and a slump in dining-out demand worked in combination.
The reason for the rumored Gangnam Station opening is seen as a strategy that considers Chipotle's brand stature, which differs from Eggslut's. Because Chipotle competes locally with major brands such as Shake Shack, In-N-Out, and IHOP, it may choose a symbolic, high-profile street-front store rather than a mall location, according to observers. In fact, both Shake Shack and Five Guys launched their Korea businesses on Gangnam-daero.
Still, it remains uncertain whether Chipotle can move beyond early buzz to become an everyday dining brand. Mexican food has struggled to gain mass popularity in Korea's dining market. A perception of low value due to higher prices than in its home market, along with unfamiliar ingredients or tastes compared with pizza and burgers, has constrained its spread.
More recently, however, market conditions have been changing, which is a positive sign. Brands such as Cuchara, dubbed the Korean-style Chipotle, are securing stable demand in key commercial districts, and the spread of delivery platforms has improved access to Mexican food among younger generations. Wellness trends such as low-carb and gluten-free also align with Chipotle's strengths, analysts say.
Chipotle is a brand that fronts a customization (made-to-order) service, where consumers choose ingredients centered on tortillas and bowls, along with a healthy-food image. It operates about 4,000 stores worldwide, including in the United States, Canada, and the United Kingdom, and has grown rapidly, particularly by attracting young Americans.
This entry into Korea is Chipotle's first foray into the Asian market and also its first case of expanding overseas business through a joint venture. In Canada and the United Kingdom, it has pursued operations through self-management or direct investment. Along with Korea, SPC Group has also secured exclusive operating rights in Singapore and plans to open the first store there around the same time as in Seoul.