Lotteria

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Lotteria
Type subsidiary of LOTTE
Industry fast food
Founded February 2, 1972
Headquarters Seoul, South Korea
Products fast food
Website http://www.lotteria.com

Lotteria is a chain of fast-food restaurants in East Asia that grew out of its first shop in Seoul, South Korea in October 1979. Taking its name from its parent company, Lotte, it currently has franchises in Japan, China, Taiwan, South Korea, Indonesia, Vietnam, and Myanmar.[1]

Its menu includes typical fast-food items such as burgers, fried potato, fried chicken, chicken wings, and chicken fingers.

History[edit]

The company was founded on February 1972 in Tokyo, Japan by Shin Jun Ho, a Korean entrepreneur. Its first franchises opened in Nihonbashi, Ueno, and Yokohama in September of that year.[2]In 1979 the brand was established in Seoul, South Korea.[3] Lotteria later spread throughout East Asia adding locations in China, Myanmar, Taiwan, and Vietnam.

Businesses by country[edit]

Japan[edit]

Lotteria in Osaka, Japan.

In Japan, Lotteria's most popular menu items are hamburgers, cheeseburgers, and teriyaki burgers. It invented its other popular item, the shrimp burger, in 1977, which has since been copied by McDonald's and MOS Burger in Japan.

In addition, the menu in Japan also includes fresh sandwiches as well as desserts like crepes, apple pie, shakes and frozen cake-sticks. The premium cheese burger is the top selling menu in Japan.

In 2005, Genichi Tamatsuka, former president of the Fast Retailing Co. (which operates the Uniqlo brand), was appointed as its chairman and CEO during a restructuring of management in 2005.[4] The appointment was an outgrowth of a previous contract with Revamp Corp, a business revitalization company.[4]

A Lotteria lunch in Japan. A sandwich set accompanied by chicken sticks and a crepe.

Taiwan[edit]

Lotteria has three restaurants in Taiwan, the first of which opened in Taipei in 1986.

South Korea[edit]

Lotteria in Changnyeong, South Korea.

Lotteria South Korea was founded in 1979,[5] as part of an expansion of the Lotte Group which also included Lotte Chilsung Beverages, Lotte Food, and Lotte Ham. Lotteria became the number-one fast food restaurant chain in South Korea. The company achieved a 45% market share in 2001 (compared to 20.1 percent for McDonald's).[3] Lotteria's success was achieved in part by introducing lines of Koreanized fast food including its now signature kimchi burger, leading to it being seen by most Koreans as a native version of most Western-style fast-food restaurants. The company tries to imitate the western idea of fast food through "cleanness, the bright interior, the Western pop music as an audio background," with the idea of trying to create "the impression of a 'small piece of America in the middle of Korea'".[3] Their business strategy resulted in growth rates of 10 percent in 2006 and 16 percent in 2007; by 2009, Lotteria had 920 outlets across the country.[6]

The menu in South Korea includes baked potatoes, yogurt, salads, cheese sticks, squid rings, and a popular shaved iced dessert called pat bing soo (팥빙수). One of the restaurants most popular burgers is the 'Bulgogi Burger' with bulgogi sauce serving as relish. In South Korea too, a specially priced lunchtime menu is offered focussing on less expensive and often reduced items. The timing of the lunch menu differs from store to store but falls within the hours of 11 a.m. and 2 p.m., with prices fluctuating from location to location. There are a few stores which carry weekend lunches but these are relatively rare.

In March 2009, Lotteria took full control of the South Korean branch of T.G.I. Friday's.[6] It had previously invested 10 billion won in the chain in 2002.[7] Lotteria also runs Natuur, one of South Korea's major ice cream franchises,[8][9] itself introduced to South Korea by Lotte in 1998.[10]

Vietnam[edit]

The restaurant entered the Vietnamese market in 2004.[1] Its menu there includes regular menu burgers and fried chicken but not side items like baked potatoes, squid rings, and pat bing soo. They also have an ice cream-based dessert (not unlike a McFlurry) called a Tornado. It comes in five flavors: chocolate, cookie, peanut, sprinkles or green tea.

Indonesia[edit]

The chain open its first Indonesian franchise in 2011.[1]

Myanmar[edit]

There were plans to open a location in Junction Centre in Yangon in April 2013, with plans to open 24 more by 2016 from Yangon to Nay Pyi Taw. Along with the regular fare of chicken and burgers, Lotteria is offering dishes tailored to Myanmar consumers, such as chicken rice.[1]

Other business strategies[edit]

In 2003 Lotteria partnered with KT and Intel to provide Wi-fi access in its restaurants,[11] to help attract more customers. This service has also been available in every restaurant in Japan for Docomo's and Au's mobile users since 2006.

Lotteria has followed the global fast-food trend of shifting towards health-conscious foods and rebranding its image. In the face of health trends, it eliminated trans fats from its French fries.[12] It also introduced healthier menu items, such as a rye bread burger that totals only 350 calories.[13] From 2008, perhaps as a response to McDonald's strategy to become more upmarket, Lotteria began a campaign to change "the image of our stores to create a mood similar to a cafe, geared toward the health-conscious as well as female customers".[14]

Recycling (South Korea only)[edit]

In South Korea, waste is separated by category.

Since 2003, the South Korean government has required a 50-to-100 Won deposit to be levied against all disposable cups sold in restaurants to ensure that they were returned to be recycled.[15] As such, products (such as drinks and ice cream) to be consumed in-store are served in reusable plastic containers; or if a customer purchases their product in a disposable cup and pays the deposit, they can have their deposit refunded if they return the empty cup to the counter staff. The recycling law yielded recycling rates for cups of 14 percent in 2003, 22 percent in 2004, and 25 percent in 2005.[15] This law has since been repealed.

The Seoul city government requires mandatory garbage sorting with food, recyclables, and general trash to be separated from each other. Specialized receptacles thus exist (for liquids, paper, uneaten food, plastic, and other general waste) at all Lotteria restaurants. In addition, Lotteria also charges a fee of 50-to-100 Won on bags as is the norm for most western-style stores and other shopping venues in South Korea.

See also[edit]

References[edit]

  1. ^ a b c d http://www.mmtimes.com/index.php/national-news/yangon/6188-fast-food-invasion-looms-in-yangon.html
  2. ^ Lotte Corporate History, 1970-1999[dead link]
  3. ^ a b c "Lankov, Andrei. "Experience To Go." Korea Times. Seoul, Korea: 25 October 2007". Koreatimes.co.kr. Retrieved 2010-06-28. 
  4. ^ a b "Ex-Fast Retailing head named chairman of Lotteria burger chain." Kyodo News International: Tokyo, Japan, 22 January 2006
  5. ^ "Lotte Korea Official Website". Lotte.co.kr. 1979-10-25. Retrieved 2010-06-28. 
  6. ^ a b "Han, Jane. "Can Lotteria Put TGI Friday’s Back on Burner?" Korea Times. Seoul, Korea: 19 March 2009". Koreatimes.co.kr. 2009-03-19. Retrieved 2010-06-28. 
  7. ^ "Kim, Jun-hyun. "Lotte picks up the tab at TGI Friday's." Joongang Daily. Seoul, Korea: 31 May 2002". Joongangdaily.joins.com. 2002-05-31. Retrieved 2010-06-28. 
  8. ^ "Lotte Natuur official Korean website". 
  9. ^ "Asia Business Daily (2012, March)". 
  10. ^ "Yonhap news (1998, April)". 
  11. ^ Yang, Sung-jim. "Wireless Internet service opens at Lotteria eateries." Korea Herald. Seoul, Korea: 9 April 2003
  12. ^ "Sung, So-young. "Fast food joints are trimming the trans fat: survey." Joongang Daily. Seoul, Korea: 22 November 2007". Joongangdaily.joins.com. 2007-11-22. Retrieved 2010-06-28. 
  13. ^ "Lee, Hun-ho. "Fast food changing fast for health." Joongang Daily. Seoul, Korea: 2 June 2005". Joongangdaily.joins.com. 2005-06-02. Retrieved 2010-06-28. 
  14. ^ "Cho, Jae-Eun. "Korean McDonald’s seeing supersized growth in sales." Joongang Daily. Seoul, Korea: 9 April 2008". Joongangdaily.joins.com. 2008-04-09. Retrieved 2010-06-28. 
  15. ^ a b "Kwon, Hyuk-joo. "Survey finds around 25% of paper cups are recycled." Joongang Daily. Seoul, Korea: 03 October 2005". Joongangdaily.joins.com. Retrieved 2010-06-28. 

External links[edit]