Taco Bell Joins KFC Korea, Plans to Open 40 Stores in Five Years

"Taco Bell The Gangnam Opening Night" Media Event Held on the 15th
Three Stores, Including Gangnam Location, to Open This Year
Emphasizing Cost-Effectiveness and Localization Strategy, Unlike Before

KFC Korea has officially begun expanding the global Mexican food brand Taco Bell in the domestic market after acquiring the Korean business rights. With growing interest in Mexican cuisine, the company plans to open 40 stores within five years, focusing on value-for-money menus and a localization strategy.

On September 15, Hosang Shin, CEO of KFC Korea, held a media event at "Taco Bell The Gangnam" located on Teheran-ro in Gangnam-gu, Seoul, and announced, "This year, we plan to open three stores, including the Gangnam location," adding, "Through aggressive investment, we will expand the Mexican food category in Korea."

At the "Taco Bell The Gangnam Opening Night" media event held on the 15th at Taco Bell The Gangnam store, Seunghyun Son, Chief Marketing Officer of Taco Bell Korea at KFC Korea, Jongsu Han, General Manager of Taco Bell Korea at KFC Korea, Hosang Shin, CEO of KFC Korea, and Youngwook Jeon, Team Leader of the R&D Center at KFC Korea (from left), are answering questions. Photo by Yeju Han

Taco Bell The Gangnam is the first store to open after KFC Korea signed a master franchise agreement with Yum! Brands, the parent company of Taco Bell, in April. Taco Bell first entered the Korean market in 1991, but has struggled to gain a foothold, with the business operator changing three times. Dongsin Food, which operated Pizza Hut Korea, opened the first store in Seocho-dong, but withdrew in the mid-1990s due to low brand awareness and unfamiliar menu items. Subsequent attempts by the special purpose company M2G also failed, and although Calisco joined as a co-operator in 2014 and has continued operations to this day, progress has been slow. Currently, there are nine Taco Bell stores in Korea, far short of the initial goal of 50 locations.

CEO Shin also noted, "Taco Bell is not a new brand," but emphasized, "As you can see from the atmosphere of Taco Bell The Gangnam, we will continue to drive change." He particularly pointed out, "In Korea, Taco Bell has not been able to showcase its young and fun image," and added, "Mexican food itself was not a popular category among the public, but recently, platforms like Coupang Eats and Baedal Minjok have expanded the category to the point where it now stands independently."

Exterior view of the 'Taco Bell The Gangnam' store. Photo by Han Yeju

The renewed Taco Bell aims to increase accessibility by offering reasonably priced menu items and focuses on providing the experience that Mexican food can serve as a full meal. In practice, tacos are priced starting in the 3,000 won range, and set menus including drinks are offered in the 7,000 to 8,000 won range, targeting consumers who feel burdened by high dining-out costs. For lunch, a set menu featuring tacos, burritos, sides, and drinks is available to provide a hearty meal, while in the evening, a selection of snacks and alcoholic beverages for two people is offered in the 20,000 won range. The strategy is to emphasize clear price competitiveness compared to the Gangnam commercial district.

The company has also implemented a localization strategy. During menu development, the focus was on maintaining Taco Bell’s unique originality while finding a balance to appeal to Korean consumers’ tastes. Youngwook Jeon, Team Leader of the R&D Center at KFC Korea, explained, "We visited popular taco restaurants in Korea three to four times a week to analyze the flavor points that consumers want, and also visited Taco Bell stores in the United States, Thailand, and Japan to check global standards and trends." He added, "We developed sauces to highlight the umami and spiciness preferred by Korean consumers, and through this, introduced new menu items tailored to Korean tastes."

Interior view of the 'Taco Bell The Gangnam' store. It is notable for being the first in Asia to introduce a bar concept. Photo by Han Yeju

Taco Bell plans to open two additional stores in Seoul this year. Depending on the commercial area, the stores will operate under two concepts: a full bar-type store with alcoholic beverages, like Taco Bell The Gangnam, and a standard QSR (Quick Service Restaurant) store for casual dining.

Jongsu Han, General Manager of the Taco Bell business at KFC Korea, commented, "At Taco Bell The Gangnam, you can experience a new, young, and sophisticated Taco Bell," and added, "In addition to globally loved Taco Bell menu items, we are preparing special new menu items for the Korean market, and we will do our best to provide unique food and differentiated service that only Taco Bell can offer."

Meanwhile, Taco Bell The Gangnam, set to open on September 17, is notable for being the first in Asia to introduce a bar concept. During the day, customers can enjoy a variety of Taco Bell menu items such as tacos, quesadillas, and burritos in a casual atmosphere, while in the evening, the space transforms with vibrant lighting and music, operating as a venue for drinks and late-night snacks.

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