'Everyone's Going Drive-Thru' Starbucks and McDonald's Race Ahead... Lotteria Steps Up, Paul Bassett Expands

Starbucks drive-thru store.

[Asia Economy Reporter Lee Seon-ae] The food service industry is competitively expanding drive-thru stores. While reckless store expansion is avoided amid fierce market competition, special effort is being made to open drive-thru stores nationwide. This is because they are considered the most suitable stores in the wake of the COVID-19 pandemic and the acceleration of the contactless trend. Overseas brands have early secured and led the market, while domestic brands are hastily expanding their stores.

According to the industry on the 1st, Starbucks Coffee Korea recently opened the Jooan DT drive-thru store in Incheon. It has opened 41 drive-thru stores this year alone. Starbucks started with the opening of the first domestic drive-thru store, Gyeongju Bomun-ro DT, in September 2012 and currently operates 274 stores. It boasts an overwhelming number one position in the coffee specialty store industry. Stores are operated in Seoul (15), Gyeonggi (80), and other regions (179), accounting for about 18% of all stores.

Paul Bassett drive-thru store.

Domestic coffee specialty stores are also focusing on expanding drive-thru stores. Paul Bassett officially entered the market by opening its first drive-thru store in Jeonju at the end of last month. Kim Yong-chul, CEO of Paul Bassett, said, "We introduced drive-thru stores to match the changing lifestyle," adding, "Paul Bassett’s first drive-thru store is located on the outskirts of Jeonju, on the way to downtown Jeonju and Hanok Village, so many customers are expected to use it conveniently." Paul Bassett plans to open its second drive-thru store in Jeju in December.

Ediya opened the 'Yeosu Hanjae DT store' in August 2019 and currently operates one drive-thru store. The 'Yeosu Hanjae DT store' is located between Yeoseo, a representative residential and commercial area of Yeosu, and Dolsando, a tourist destination, attracting not only local residents but also tourists, receiving good responses. It is considering expanding drive-thru stores next year. Twosome Place, which operates 10 drive-thru stores out of about 1,300 stores, is also steadily expanding its stores.

McDonald's drive-thru store.

In the hamburger industry, McDonald's Korea is leading the market. McDonald's operates 410 stores in total, of which about 60%, or 260 stores, are drive-thru. It continues to expand stores, recently opening the Goyang Samsong DT store in August. Burger King is also steadily increasing its drive-thru stores. After opening its 400th store in June this year, it currently operates 403 stores, 85 of which are drive-thru. A Burger King official explained, "We are expanding drive-thru stores to increase customer convenience and accessibility."

Domestic brand Lotteria operates about 40 drive-thru stores out of 1,330 total stores and is actively reviewing locations to continue expanding.

Meanwhile, drive-thru stores have location constraints that require a basic site area large enough for cars to enter and exit. However, they have the characteristic of attracting new customers and generating demand by allowing visits using cars even in commercial areas with almost no foot traffic. Additionally, they provide a stay space like regular stores and allow customers to order drinks without leaving their vehicles through the drive-thru ordering space, increasing customer convenience compared to regular stores and resulting in about 20% higher average sales efficiency.