The market size of restaurant business was 30 trillion won in 1997 in Korea, and is still growing. The causes of the appearance of this large market are;
1) Increased income followed by the development of Korean economy
2) Aggressive marketing of th...
The market size of restaurant business was 30 trillion won in 1997 in Korea, and is still growing. The causes of the appearance of this large market are;
1) Increased income followed by the development of Korean economy
2) Aggressive marketing of the global enterprises
3) Appearance of large-scaled and modernized domestic brands
And recently, several brands are trying to expand their market into the biggest market around the world, China. But, they are still in the early stages. They are even facing big difficulties caused by the lack of preparations. So, this study started from this point of view.
To focus on the current performances of domestic restaurant franchise business and to provide the global strategies, five parts are composing this paper. First, as an introduction, the issues and the objectives of this study are mentioned. The methods and scopes are also included. Second parts subscribes the types and effects of several franchise systems. And then it goes to the history and current performances of domestic restaurant franchise business. Third part is focusing on globalization. It reviews the penetration
The causes of the appearance of this large of global restaurant companies into Korean market and the globalization efforts of domestic restaurant franchise companies. Fourth, it provides the global strategies of domestic restaurant franchise companies, based on the study in part three. And finally, the conclusions, the barriers of proceeding the study, and the directions of further study are mentioned.
To succeed the market expansion abroad, for the domestic restaurant companies, there are two pre-requisites. First, they should understand the franchise system and should establish their own systems. Second thing is the environment analysis. They should analyse the economic, cultural, societal, industrial, and the competition environment. After doing the analysis of the internal and external environment, a company can establish the penetration strategies into a new market.
For the globalization of domestic restaurant franchise companies, the recommendations of this study are;
1) Clarify the objectives and directions of the globalization. preparation and the consistency can reduce the risks.
2) Establish the infrastructure of the globalization. The thorough Especially, the management should invest in human resources from the long-term perspective.
3) Localize the business. Selecting the partners, sending out the core manager, recruiting the local employees, and analysing and satisfying the local customers' needs are also important.
4) Establish the complete franchise system. From recruiting the franchisees to educating the franchisees, to supervising and to educating the employees, all the activities should be standardized and recorded in manual books.
Although this study proceeded a lot of primary researches and provided several key recommendations, it does not include field studies and secondary data. And there were difficulties in domestic industy study, because of the lack of precedent studies and information. So it needs further studies focusing on the field data and actual proofs. Thank you.