Domestic and foreign dining franchises are changing their store-opening strategies in Seoul's Gangnam. In the past, the goal was to open a symbolic first store in Gangnam; recently, the strategy has shifted to building a so-called "Gangnam belt" by consecutively opening stores in key commercial hubs such as Gangnam Station, Sinnonhyeon, and the Shinsegae Department Store Gangnam branch. The move is seen as a strategy to view the entire Gangnam living area as one market and secure multiple footholds to raise brand exposure and accessibility at the same time.
According to the dining industry on the 19th, U.S. premium ice cream brand Van Leeuwen opened its first store in Korea at Gangnam Station on the 3rd and plans to place all three initial stores in the Gangnam area within this month, including Sweet Park at the Shinsegae Department Store Gangnam branch and near Sinnonhyeon Station. It chose a strategy to target the entire Gangnam living area even before settling into the Korean market.
Chinese premium tea brand CHAGEE opened a Gangnam flagship store in April and recently moved into Sweet Park at the Shinsegae Department Store Gangnam branch. U.S. Mexican food brand Chipotle also opened Asia's first store on Gangnam-daero and is pushing to enter Sweet Park, expanding its Gangnam-area footholds.
Domestic brands are pursuing similar strategies. Cafe brand Paul Bassett recently opened a strategic store near Sinnonhyeon Station and introduced Gangnam branch–exclusive menus and bakery content. Chicken franchise bhc plans to open its first flagship store near Gangnam Station next month, and CJ푸드빌 is preparing to enter Gangnam with its new Italian brand, Olifepe.
Industry watchers say companies have begun to view Gangnam not as a single commercial district but as a complex living area made up of multiple consumer zones. That is because Gangnam Station draws office workers and younger consumers, Sinnonhyeon caters to nightlife and dining demand, and the Shinsegae Department Store Gangnam branch has a high proportion of shoppers and tourists, giving each area distinct consumption characteristics.
A dining industry official said, "In the past, simply opening a first store in Gangnam was symbolic, but recently it has become more important to secure as many customer touchpoints as possible within the Gangnam living area," adding, "In particular, Gangnam brings together office workers in their 30s and 40s with strong purchasing power, trend-leading younger generations, and foreign tourists, which is a strength that can attract diverse demand."
◇ "Accepting the expense burden to spread the brand quickly"
Multiple stores also have the advantage of boosting brand exposure. A consumer who first encounters a brand at Gangnam Station is more likely to revisit after encountering the same brand again at a department store or in a nearby commercial area. In particular, overseas brands entering the Korean market for the first time are inclined to use a Gangnam-focused strategy to build initial awareness.
In the past, many brands, like Shake Shack or Five Guys, expanded to other regions on the back of a successful first store in Gangnam. Recently, however, the evaluation is that launch strategies are changing to first securing multiple footholds in the Gangnam area, as in the case of Van Leeuwen, and then expanding business to the greater Seoul area and regional cities.
However, a multi-store strategy in Gangnam does not guarantee success. High rent and labor costs, as well as investment expenses associated with operating multiple stores, are also significant.
A dining industry official said, "Gangnam is the district where you can spread a brand the fastest, but it is also the area with the biggest expense burden," adding, "Still, there is an aspect of taking on a certain level of risk and investing to increase initial brand touchpoints."