SPC Group is once again moving to expand its overseas restaurant brand portfolio, fronting the leading U.S. Mexican food brand Chipotle. With a location at The Hyundai Seoul in Yeouido seen as likely and core districts such as the Gangnam Station area also under review, attention is focusing on how this strategy will perform going forward.
According to the industry on the 19th, SPC Group affiliate Big Bite Company is reviewing The Hyundai Seoul and the Gangnam Station area for Chipotle's first store in Asia and first in Korea, as early as the first half of this year. The specific site and opening timeline are being coordinated internally.
With the possibility of a location at The Hyundai Seoul being raised, 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, then launched its second at The Hyundai Seoul the following year, achieving early success.
Eggslut later rode word of mouth to add stores such as Hannam and Bundang Jeongja, but it failed to secure a differentiated presence amid domestic and overseas burger and sandwich franchises. Ultimately, after repeated declines in results, it wound down its Korea operations in 2024.
SPC Group has expanded its dining business by settling brands such as Dunkin, Baskin-Robbins and Shake Shack in Korea, but through the Eggslut case it confirmed that bringing in globally famous brands does not necessarily lead to long-term success. Analysts say a combination of an ambiguous price range, a limited customer base and a slump in dining-out demand played a role.
The reason a Gangnam Station opening is being discussed is seen as a strategy that considers Chipotle's brand stature, which differs from Eggslut. As Chipotle competes locally with major brands such as Shake Shack, In-N-Out and IHOP, there is an outlook that it could choose a high-profile street-front location over a mall. In fact, both Shake Shack and Five Guys began their Korea businesses on Gangnam-daero.
However, it remains uncertain whether Chipotle can move beyond early buzz to establish itself as an everyday dining brand. Mexican food has struggled to become mainstream in Korea's dining market. In addition to the perception of low value due to higher prices than in the home market, unfamiliar ingredients or flavors compared with pizza and burgers have also constrained its spread.
More recently, the changing market environment is a positive sign. Brands such as Kuchara, known as a Korea-style Chipotle, are securing stable demand in key districts, and the spread of delivery platforms has increased access to Mexican food among younger generations. Analysts also say that wellness trends such as low-carb and gluten-free align with Chipotle's strengths.
Chipotle is a brand that fronts a healthy-food image and a customizing (made-to-order) service in which customers choose ingredients centered on tortillas and bowls. It operates about 4,000 stores worldwide, including in the United States, Canada and the United Kingdom, and has grown rapidly, especially by gaining popularity among young Americans.
This entry into Korea is Chipotle's first move into an Asian market and its first case of expanding overseas through a joint venture. In countries such as Canada and the United Kingdom, it has pursued operations through self-management or direct investment. Alongside Korea, SPC Group has also secured exclusive operating rights in Singapore and plans to open a first store there around the same time as in Seoul.