FG Korea Signs MOU with Headquarters
Plans to Open Over 20 Stores Starting Next Year
Five Guys will enter the Japanese market just one year after its domestic launch. Five Guys is a business led by Kim Dong-seon, Vice President and Head of Strategy at Hanwha Galleria, who is the third son of Kim Seung-yeon, Chairman of Hanwha Group.
Vice President Kim Dong-seon (center) and key stakeholders are cutting a cake at the first store, Five Guys Gangnam, on the 26th of last month to celebrate the 1st anniversary of the domestic launch.
FG Korea, the domestic operator of Five Guys, announced on the 9th that it signed a Memorandum of Understanding (MOU) with Five Guys International last month, focusing on Five Guys' entry into the Japanese market. With this MOU, FG Korea will be able to take the lead in launching Five Guys in Japan.
FG Korea plans to open its first store in the second half of next year (July to December) and aims to open more than 20 stores across Japan, including Tokyo, over the next seven years.
According to industry sources, the Japanese hamburger market is about 2.5 times the size of Korea’s and has recorded an average annual growth rate of 6.5% since 2015. In particular, the premium burger market in Japan is still underdeveloped, indicating high growth potential.
Kim, who oversees FG Korea’s strategy division from the domestic launch to new global market expansion, stated that starting with Japan, they will spread the excellent operational know-how of Korean Five Guys to various regions.
Kim said, “FG Korea has achieved remarkable results in just one year through systematic quality control and differentiated service,” adding, “We will not stop at Japan but will pioneer various new markets so that Korea can become the global standard for Five Guys.”
Meanwhile, to mark the first anniversary of Five Guys’ domestic launch, FG Korea plans to expand services such as regional expansion, delivery, and gift cards. Currently, all four locations?Gangnam, Yeouido, Gangnam Express Bus Terminal, and Seoul Station?are listed among the ‘Global TOP 10 Stores.’ Additionally, a new store (the 5th branch) will open in Pangyo, Bundang, Gyeonggi Province, in September. Starting with Pangyo, the first region outside Seoul, they plan to continuously expand regional stores.
Furthermore, a prepaid gift card that can be charged up to 200,000 KRW will be launched this month. The gift card will first be available at the Seoul Station store and can be used simultaneously at all stores. They will also introduce a delivery service in partnership with Coupang Eats. After a pilot operation at the Gangnam store in the second half of this year (July to December), they plan to expand the service area.
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