Shrinking or scaling up... Franchise outlets polarize as the “ambisumer” trend spreads

[Financial News]  Restaurant franchise chains, including burger and chicken brands, are sharply divided in their store-opening strategies when it comes to scale. While a string of supersized flagship stores offering distinctive brand experiences are opening, ultra-compact outlets with drastically reduced floor space and menus are rapidly multiplying. As high prices and an economic downturn combine to push consumers’ spending to opposite extremes, they are also reshaping the formats of franchise outlets.
According to industry sources on the 8th, as high prices polarize consumers’ dining-out spending, franchise outlets are splitting into premium, large-format stores seeking to capture experience-driven spending and compact stores targeting customers looking for a quick, light meal. With the burden of operating outlets—including rent and labor costs—rising, the strategy is to maximize space efficiency to suit each commercial district and target market.
The rollout of specialized outlets is gaining momentum as brands seek to attract customers willing to spend on worthwhile experiences and spaces. Mom’s Touch opened its largest-ever outlet, Mom’s Touch Everland, at Everland in Yongin, Gyeonggi Province. Its interior features a 1960s American diner style, bringing the theme park’s atmosphere inside the store as well.
SHINSEGAE FOOD’s No Brand Burger has opened a specialized outlet in Seongsu-dong, Seoul, operating it as a test store and pop-up for SHINSEGAE FOOD. Right next door is Burger King’s first flagship store anywhere in the world, Flame Ground Seongsu. At its “The Gastro,” visitors can try dishes that reinterpret burgers as a course meal; T-shirts and a photo booth are also available.
BHC Chicken has opened its first flagship store near Gangnam Station in Seoul. Breaking away from the traditional chicken outlet model, which focused on alcohol sales and delivery in the evening, it is upgrading the space and service and diversifying the menu to attract diners at lunchtime and in the afternoon as well.

Meanwhile, ultra-small, value-focused outlets emphasizing affordability and quick turnover are also surging. No Brand Burger is expanding the rollout of compact outlets with about 40% less floor space than its standard stores. A key feature is that streamlined kitchen equipment and interior design have brought startup costs down to the 90-million-won range. The format is spreading quickly, especially in university districts where demand is high for a quick, light meal. Currently, about 40% of its outlets on university campuses and in nearby commercial districts operate in the compact format.
Lotteria is also maximizing profitability with outlets that have smaller footprints and automated equipment. The Gangnam Station SELECT store, opened in the commercial district around Gangnam Station in Seoul, is a compact outlet that has sharply reduced its menu and floor space compared with existing stores to increase order turnover. Lotteria has also introduced a cooking robot at its Noryangjin Station branch to streamline staffing.
Experts see this phenomenon as part of the “ambisumer” (two-sided consumer) trend: amid the downturn, people cut back on everyday food spending while boldly investing in special dining experiences for themselves.
Seo Yong-gu, a professor of business administration at Sookmyung Women’s University, said, “As inflation intensifies, consumers are being extremely frugal with everyday grocery and dining-out spending,” adding, “On the other hand, they readily open their wallets for experience-oriented spaces that suit their tastes, and the middle ground in spending is disappearing from dining-out venues as well.”  
[email protected] Park Kyung-ho Reporter