[Report] Dining Industry Mood Revives... Franchise Startup Fever Heats Up

Franchise Association Startup Expo from 5th to 7th
200 Companies, Over 500 Booths... Largest in Korea
Expectations for Economic Recovery Post-COVID-19
Increased Participation in Food Service Industry... Many Unmanned and Contactless Devices

“There were so many prospective startup owners this year that we had no time to leave the consultation tables empty. I feel that the dining industry atmosphere is gradually coming back to life.”

On the 5th, prospective entrepreneurs attending the 'Franchise Startup Expo' held at COEX in Gangnam-gu, Seoul, were bustling. Photo by Jinhyung Kang aymsdream@

At the startup expo, where the savory smell of fried food, the fragrant aroma of coffee, and the sweet scent of waffles blend together to naturally stimulate appetite, a representative at a food franchise booth carrying tasting samples greeted the influx of visitors with an excited expression.

The “2023 54th IFS Franchise Startup Expo,” where franchise startup information can be explored all in one place, opened on the 5th.

From the first day of the opening, the expo hall was bustling with prospective entrepreneurs and brand promotion representatives. The Korea Franchise Industry Association, which organizes the event, expects more than 30,000 visitors over the three days until the 7th.

At the KFC booth set up at the '2023 54th IFS Franchise Startup Expo' opened on the 5th at COEX in Gangnam-gu, Seoul, visitors are lining up to receive sample food. Photo by Moon Hyewon

This expo featured 200 companies and over 500 booths welcoming visitors.

Among them, the Global Brand Zone attracted attention as KFC, which had operated only directly managed stores until now, began full-scale franchising and communicated with those hoping to start a business. A photo zone using chicken buckets was set up, bustling with young people in their 20s taking pictures, and a tasting zone with a cooking station created a spectacular scene with endless lines of visitors waiting to receive sample menus.

Delivery and takeout, contactless and unmanned payment or ordering kiosks, robots, and automation devices also caught the eye. Advanced devices such as chicken robots, automatic food cookers, unmanned ramen vending machines, fully automatic coffee machines, hybrid tanning machines, and smart unmanned pubs operated nonstop, captivating visitors’ attention.

Prospective entrepreneurs participating in the 'Franchise Startup Expo' held on the 5th at COEX in Gangnam-gu, Seoul, are receiving startup consultations. Photo by Jinhyung Kang aymsdream@

The promotional booth of a screen golf company attracted middle-aged and older prospective entrepreneurs. Park Myung-hee (62 years old, pseudonym), who visited the expo to start a business using her retirement fund after retirement, said, “My friends and relatives all often go golfing and like to exercise,” adding, “If I am going to start a business, I want to open a store based on a subject that I am personally interested in and enjoy.”

The “Robot Chef” set up at one side of the Jadam Chicken booth received praise from visitors as it accurately handled the entire frying process of chicken, from automatic dough preparation to frying, according to the correct time and temperature. Jadam Chicken explained that one Robot Chef can cook up to six chickens at once, significantly reducing the need for human labor.

At a booth of a food company set up at the '2023 54th IFS Franchise Startup Expo,' which opened on the 5th at COEX in Gangnam-gu, Seoul, promotional staff are handing out promotional materials to visitors. Photo by Moon Hyewon

In an era of high prices, prospective entrepreneurs burdened by rising labor costs and rent showed great interest in small-capital startup brands that are relatively easy to approach.

Lee Ho-geun (38 years old), a prospective entrepreneur preparing to start a business jointly with a former colleague, said, “With just a salary from my job, I cannot keep up with the rising housing prices and living expenses, so I became interested in startups to generate additional income,” adding, “I want to get more detailed information about unmanned cafes, convenience stores, and ice cream shops, which require relatively less effort and can be operated as a ‘second job’ while maintaining my current job.”

The Franchise Association explained that although it has organized the startup expo twice a year, this time, amid expectations of economic recovery, participation by dining brands that had faced difficulties has increased. An association official said, “The dining industry has focused more on strengthening internal operations rather than expanding franchises due to the impact of COVID-19 and economic downturn,” adding, “Although the business environment remains challenging, many prospective entrepreneurs are expected to show interest and participate in the startup expo, supported by the recovery in dining demand and increased startup demand.”