Lotteria's Great Rebellion... Rejoining the '1 Trillion Club' After 7 Years

Napoli Mafia Mozzarella Sells Out
Pioneering the K-Burger Genre, Likely to Rejoin the 1 Trillion Won Club
Breaking Free from an 'Outdated Image' Through Innovative New Menu Development

The 'native burger house' Lotteria has fired the starting shot for its revival. Thanks to Lotteria, which pioneered the K-burger genre with items like 'Jeonju Bibim Rice' and 'Ojingeo Alive' and garnered consumer response, Lotte GRS is on the verge of rejoining the 1 trillion won club after 7 years. The 'Napoli Mafia Mozzarella,' introduced as the first new menu item of the year, is also selling out and gaining popularity. Lotteria, which had stumbled due to its outdated image and the impact of COVID-19, is being evaluated as coming back to life through long-term structural improvements.

According to the industry on the 23rd, the two types of Napoli Mafia Mozzarella burgers released by Lotteria on the 16th have initial sales exceeding twice the internal target. The new product was launched in collaboration with Chef Kwon Seong-jun of Napoli Mafia, the winner of Netflix's 'The Final Table,' and reinterprets the steady seller 'Mozzarella in the Burger.' The main ingredients include brioche buns topped with mozzarella and cheddar cheese, green basil, and red tomatoes reminiscent of the Italian flag.

Consumer reactions have been explosive. Netizens have praised it with comments such as "The most delicious among Lotteria burgers," "Though it costs the price of two bulgogi burgers, I intend to repurchase," "I wanted to eat it again but couldn't because it was sold out," and "This is the first delicious chef collaboration food." A Lotte GRS official said, "As it is the first menu of the new year, it was released after numerous tests and meetings," adding, "Some stores have sold out all their stock, resulting in shortages, which is a positive outcome."

With the initial success of the Napoli Mafia Mozzarella burger, Lotteria has been able to continue the streak of successful new menu launches that began last year.

Lotteria had long been unable to escape the quagmire of stagnation. Lotte GRS, which accounts for 70-80% of Lotteria's sales, was a 1 trillion won company until 2017, but due to market saturation in the burger sector and Lotteria's sluggish performance, it began to decline in 2018 (830.9 billion won). To make matters worse, the COVID-19 pandemic further hindered progress, causing sales to plummet to 675.7 billion won in 2021. At one point, among young consumers, Lotteria was regarded as a 'neglected brand.'

However, Lotteria did not give up. It boldly closed unprofitable stores and focused on developing innovative menus rather than expanding its footprint. As a result, it succeeded in launching menus that Koreans would like. The Jeonju Bibim Rice burger introduced in 2023 and the Ojingeo Alive burger released last year are representative examples. The Jeonju Bibim Rice burger was initially a limited release but was adopted as a regular menu item at the end of the year due to its high popularity. The Ojingeo Alive burger enjoyed popularity, selling over 700,000 units in 11 days after its release at the end of June last year. Additionally, the 'Wang Donkatsu Burger' launched in February last year sold 550,000 units in two weeks and 800,000 units in a month.

Thanks to this, Lotte GRS is estimated to have achieved sales exceeding 1 trillion won last year. Lotte GRS operates brands including Lotteria, Angel-in-us, and Krispy Kreme Doughnuts, and recorded sales of 744 billion won and operating profit of 36 billion won from the first to third quarters last year. These figures represent increases of 7.0% and 109.3%, respectively, compared to the same period the previous year. Although the final financial results have not yet been disclosed, rejoining the 1 trillion won club after 7 years is highly likely.

An industry insider said, "Lotteria is shedding its old image and establishing itself as an icon of innovation among young consumers by creating K-burgers that traditional American burger brands cannot make," adding, "The 'Unique and Fun' slogan, which breaks the conventional wisdom of burgers, is considered to have been a successful strategy."