Drive-thru stores on rise in S. Korea

1 min readUpdated May 25, 2025Jun 30, 20153:15 AM

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U.S. fast food chain McDonald’s, which opened its first drive-thru store in the country in 1992, operates 187 drive-thru stores, according to company data. The figure accounts for nearly half of its stores in Korea.

“We’ve seen a rise in customers using drive-thru stores in suburban areas,” said a company official, adding that the fast food chain plans to raise the portion of drive-thru stores to 70 percent.

Other franchise chains are also expanding their drive-thru stores. U.S. coffee franchise Starbucks operates 34 drive-thru stores, while local fast food chain Lotteria runs 46 drive-thru stores.

The growing popularity of drive-thru stores has prompted non-food franchises to also open them. In April, Lotte Supermarket, an affiliate of retail conglomerate Lotte, adopted a drive-thru store where customers can do their grocery shopping.

The trend comes as retailers are grappling to secure new growth engines amid sluggish domestic demand and rising competition. With the exception of duty-free stores, most retail channels are facing slowing growth as consumers shop from overseas or shop online.

Drive-thru stores on rise in S. Korea

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What this means

The rapid expansion of drive-thru formats across South Korea, including by non-food retailers like Lotte Supermarket, signals a strategic pivot towards enhanced consumer convenience. This move directly pressures traditional retail models still grappling with slowing growth and online competition, mirroring McDonald's successful penetration with nearly half its Korean stores already operating as drive-thrus. While McDonald's aims for 70 percent drive-thru penetration, and Starbucks and Lotteria also expand, the critical risk for new entrants lies in adapting the format efficiently to diverse product categories. This model is likely to succeed given evolving consumer preferences, but its long-term viability hinges on whether Lotte Supermarket can replicate the convenience success seen in fast food. Retailers should closely monitor Lotte Supermarket's drive-thru store performance.

Maria Santos

Questions & Answers

When did drive-thru stores first emerge in South Korea?

Drive-thru stores first appeared in South Korea approximately 20 years ago. Market watchers confirmed this trend on Tuesday, noting the increasing favour among consumers for such convenient retail channels.

What is McDonald's plan for its drive-thru stores in South Korea?

McDonald's plans to increase the proportion of its drive-thru stores to 70 percent. A company official noted a rise in customers using these stores, particularly in suburban areas across South Korea.

Are only food businesses opening drive-thru stores in South Korea?

No, the growing popularity has also prompted non-food franchises to open drive-thru stores. Lotte Supermarket, for example, adopted a drive-thru model in April, allowing customers to do their grocery shopping conveniently.

Why are retailers expanding drive-thru options currently?

Retailers are expanding drive-thru options to secure new growth engines. This trend comes amidst sluggish domestic demand and rising competition, with most retail channels facing slowing growth as consumers shop online or overseas.

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