Burger Franchises Expand 'DT Stores'... Why?

Mom's Touch to Open Double-Digit Number of DT Stores This Year
Improving Profitability Through Specialized Outlets
High Turnover Rate Effectively Boosts Sales

Burger franchises are expanding their "Drive-Thru (DT)" stores. Although the store location requirements are strict due to the nature of ordering hamburgers from vehicles, the high turnover rate and the ability to reduce labor costs are accelerating the opening of DT stores.

According to the industry on August 2, Mom's Touch plans to open its third and fourth drive-thru stores in Jeonju and Yongin, respectively, within this year. This follows the opening of its first DT store at Anyang Seoksu Station in October last year and the opening of the Jeju Ora-dong DT store in June this year.

Mom's Touch has also established specific site selection criteria, such as a monthly vehicle traffic volume of over 800,000 vehicles, frontage on a road with at least four lanes in both directions, and a land area of at least 300 pyeong. Given that location is the most critical factor for DT stores, the company has focused its store opening strategy on designing optimal contact points based on consumers' movement patterns and living areas.

In addition to Jeonju and Yongin, Mom's Touch plans to open additional double-digit numbers of DT stores this year, focusing on areas with high vehicle traffic such as the Seoul metropolitan area and major cities. A representative from Mom's Touch stated, "Through DT stores, we aim to secure new consumer touchpoints, including vehicle-using customers who are difficult to attract with walk-in visits alone, as well as demand for meals on the go."

The reason Mom's Touch is expanding its DT stores is that, amid fierce competition to open franchise outlets, the company believes it is better to improve profitability with specialized stores rather than simply increasing the number of locations. Due to restrictions on store proximity and the need to coexist with franchisees, expansion has been curbed, leading burger franchises to shift their strategies toward specialized outlets like DT stores or renovating existing stores. As of the first half of the year, Mom's Touch operates about 1,460 stores nationwide. This is the largest number among domestic burger franchises, meaning there are fewer opportunities for additional openings.

Typically, DT stores face strict location requirements, as vehicle traffic volume and road traffic laws can make obtaining permits impossible, and there must be extra land available for pedestrian flow and DT system installation. However, because of their high turnover, DT stores can increase sales while using less seating space than regular stores. Opening stores in suburban or rural areas also offers the advantage of relatively low rent. From the consumer's perspective, it is convenient to receive products directly from their vehicle.

This is why McDonald's, which was the first to introduce DT stores in Korea, is aggressively opening more locations. McDonald's Korea aims to open 500 stores by 2030, and most of these are expected to be DT stores. McDonald's already operates nearly 300 DT stores nationwide. In 2021, McDonald's introduced the "Tandem Drive-Thru," which allows two vehicles to use the drive-thru at the same time, and in 2022, it implemented the Hi-Pass payment system to further enhance DT store convenience, continuing to invest in these improvements.

Exterior view of McDonald's Yeoju DT, equipped with both Tandem DT and Hi-Pass payment systems. McDonald's

Burger King and Lotteria are also expanding DT stores in regional areas. Burger King currently operates 112 DT stores out of 528 locations, while Lotteria operates 37 DT stores out of approximately 1,300 locations.

An industry representative stated, "DT stores have the significant advantage of increasing production efficiency," adding, "DT stores will continue to grow, especially in suburban areas around Seoul and in the provinces, where vehicle traffic is high and large plots of land can be secured at relatively low cost."

This content was produced with the assistance of AI translation services.