Food Service Sector Drives Continued Growth of Seoul's Franchise Market... Average Annual Sales Reach 418 Million Won

Status of Franchise Business Registrations in Seoul for 2025
Coffee Franchise Stores Rise by 4.0%, Driven by Budget Chains
Average Startup Cost Estimated at 113.5 Million Won

The franchise market registered in Seoul continues to show steady growth.

According to the “2025 Status of Franchise Business Registrations in Seoul” released on the 22nd, the number of franchise headquarters, brands, and franchise stores registered in Seoul last year all increased compared to the previous year. The number of franchise headquarters (2,848) and brands (4,447) rose by 3.4% and 1.0%, respectively, over the previous year. During the same period, the number of franchise stores grew by 0.1% to reach 205,423, marking a continued upward trend since 2020.

Domestic budget coffee brand stores located in a building in Jongno-gu, Seoul. From left to right: Mega Coffee, Compose Coffee, Paik's Coffee. Photo by Huh Younghan

By business type, the food service sector holds the largest share, leading the franchise business market. Food service franchises account for 70.8% of registered franchise headquarters, 75.7% of brands, and 41.9% of franchise stores in Seoul. Within the food service sector, the number of coffee franchise stores increased by 4.0% year-on-year, driven by the growth of budget coffee shop chains.

As of 2024, the average annual sales per franchise store registered with Seoul-based headquarters increased by 6.0% year-on-year, reaching 418 million won, continuing the growth trend. By business type, the service sector recorded the highest growth rate at 12.1%, followed by food service at 6.8%, and retail at 2.8%.

The average startup cost required to open a franchise was found to be 113.5 million won. The service sector, which includes academies, wedding halls, and sports facilities, posted the highest startup cost at 172.4 million won. Retail followed at 147.2 million won, and food service at 96.1 million won.

The largest portion of startup costs was for interior work, averaging 54.5 million won, which accounted for 48.0% of the total startup cost. Based on the average store size of 86 square meters (26 pyeong) surveyed, the cost per pyeong was 2.1 million won.

In addition, the Seoul Metropolitan Government is pursuing policies to protect the rights and interests of franchisees and foster a fair franchise business environment, in line with the market’s growth. This year, the city introduced the “Seoul Franchise Business Penalty Guideline” to address burdens arising during contract termination. To support dispute resolution between franchise headquarters and franchisees, Seoul also operates the “Franchise Business Transaction Dispute Mediation Council” and the “Seoul Civil Economy Safety Center.”

Kim Myung-sun, Director of Fair Economy at the Seoul Metropolitan Government, stated, “We will continue to support prospective entrepreneurs and franchisees so they can start and operate their businesses based on reliable information, and we will steadily promote policies to create a fair franchise business environment.”

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