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Mom's Touch, a native burger and chicken brand, has entered the heart of Shibuya, Tokyo, Japan. This is a symbolic location where McDonald's had been established for about 40 years. After withdrawing one after another from the U.S., Taiwan, Vietnam, and other markets in the 2010s, Mom's Touch plans to use Japan, where there is a high understanding of K-food and a developed dining-out culture, as a foothold to once again tap into overseas markets.
On the 16th, Mom's Touch opened its first overseas directly operated store, 'Shibuya Mom's Touch,' in Shibuya Ward, Tokyo, Japan. The official entry was made within half a year, fueled by the successful local response to a popup store that operated for three weeks starting last October.
Mom's Touch plans to use Japan as a base camp for expanding its overseas presence. The Japanese burger market is about 7 trillion KRW in size, much larger than the domestic market (about 4 trillion KRW). In particular, Japan has a developed and diverse dining culture, making it a symbolic market that global franchises always pay attention to. If Mom's Touch can establish a foothold in Japan, it is expected to gain confidence in overseas expansion. Mom's Touch challenged markets in Vietnam in 2015, Taiwan in 2016, the U.S. in 2017, and Singapore and the Philippines in 2019, but withdrew one after another due to poor performance.
The first directly operated store in Japan stands out from its location. Shibuya Mom's Touch is situated behind a commercial area dense with landmarks such as the Scramble Crossing, Shibuya Station, and large shopping malls. Notably, it occupies the site where McDonald's operated for 39 years. The store covers 418㎡ with a total of 220 seats (from basement level 1 to the 2nd floor). A Mom's Touch official said, "We judged this to be the optimal location for providing brand experience and promotion, as it is always bustling with Japanese people and foreign tourists."
The menu focuses on popular products verified through prior surveys targeting Japanese customers, including the signature 'Ssaiburger' and Korean-style seasoned chicken. Unlike existing fast-food outlets, Mom's Touch maintains its handmade method, preparing everything from battering to frying in the kitchen by hand.
Kim Dong-jeon, CEO of Mom's Touch & Company, said, "We will establish a foothold in the Japanese dining market, which is also attracting global attention, and develop 'Shibuya Mom's Touch' as a landmark representing K-burgers and a base camp for future global market expansion."
To successfully revive its overseas expansion, Mom's Touch has also completely revised its operating method. Since being acquired by the private equity fund KL&Partners at the end of 2019, it has been entering markets through a master franchise (MF) system instead of setting up local subsidiaries. The MF system involves the company not directly entering overseas markets but contracting with local companies that have a high understanding of the country to grant franchise operation rights. Although profits are lower than direct operation, this method minimizes problems arising from cultural differences and lack of information, increasing the chances of success.
Using the MF system, Mom's Touch has already achieved considerable results in testbeds such as Thailand and Mongolia. Currently, there are six stores in Thailand and four in Mongolia. The plan is to increase them to 12 and 10 stores respectively by the end of the year. In Japan, while operating the directly managed Shibuya Mom's Touch, the company is also looking for partners to continue franchise business.
A Mom's Touch official said, "In addition, we continue to receive love calls mainly from Asian countries with high interest in Hallyu and K-food, such as Indonesia, Malaysia, Cambodia, Laos, and Kazakhstan," adding, "We plan to sign formal master franchise contracts soon and actively enter local markets."
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