Untapped Land... Potential Rated Higher
Localizing with Halal Stores and More
[Asia Economy Reporter Choi Sunghye] The Middle Eastern market is emerging as a new frontier in the Korean food service franchise industry, which is actively expanding overseas. Although the Middle Eastern market has received relatively less attention compared to China and Southeast Asia, it is now being recognized as a market with potential, leading to increased expansion into Middle Eastern countries.
According to industry sources on the 1st, Didim, a food service company, announced its entry into the Middle Eastern market for the first time with a master franchise agreement with a local Pakistani company for its meat-based franchise brand, Mapo Galmaegi.
Given the characteristics of the Islamic cultural sphere in the Middle East, Mapo Galmaegi plans to operate 'halal' stores in Pakistan selling beef instead of pork to target local consumers. Starting with the first store in Pakistan in August, they plan to open at least one store annually and eventually expand to other Middle Eastern countries.
The chicken franchise brand Nene Chicken opened a store in Dubai, the largest city in the United Arab Emirates (UAE), after signing a Middle East partnership with Jakom LLC in 2018.
The newly opened first Middle Eastern store is a casual dining concept located in the ‘Emirates Mall’ in the heart of Dubai. Nene Chicken plans to continue expanding into the six GCC (Gulf Cooperation Council) countries, including Saudi Arabia, following the opening of its first Middle Eastern store.
The dessert cafe Sulbing also signed a master franchise agreement with Muhallab Al Ghanim Group and plans to open its first store in Kuwait.
With Kuwait’s tropical desert climate where temperatures exceed 30 degrees Celsius year-round and the popularity of Korean culture in the Middle East, Korean shaved ice desserts are expected to gain popularity. Starting with Kuwait, Sulbing plans to expand its business to other Middle Eastern countries and open more stores.
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An industry insider stated, “The domestic food service franchise market is becoming increasingly competitive, so companies are turning their attention overseas with the goal of finding new growth engines and promoting Korean cuisine.” They added, “Companies recognizing the growth potential of the untapped Middle Eastern market are actively pushing to enter the region quickly to gain a first-mover advantage.”
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