Chinese-Food Franchises Have Best Chance of Survival
27 April, 2021
Chinese chain restaurants have the lowest chance of failing among food franchises in Korea, according to a report by the Fair Trade Commission predicated on 2019 data.
The analysis shows the closure rate of Chinese food franchises at only 13.4 percent, the lowest in the business. Next were Korean (14.2 percent), Western (18.1 percent) and Japanese food franchises (19.2 percent).
The FTC studied outlets that were open since 2017, including 625 Korean, 34 Chinese, 79 Japanese and 49 Western restaurants.
The closure rate of Japanese food franchises was only 11.8 percent in 2017, but they fell out of fashion and reached 19.2 percent in 2019. Park Ho-jin of the Korea Franchise Association said, "Japanese restaurants usually operate large main halls and it's really difficult to package some of their dishes for delivery."
By contrast, the closure rates of Chinese chain restaurants fell from 15.2 percent in 2017 to 13.4 percent in 2019.
But an FTC official said the picture would look very different if the catastrophic ramifications of lockdown last year have been included.
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