Arby’s to expand into South Korea next year

CHICAGO: Arby’s is hoping its meatheavy approach to fast food will appeal to Asian diners.

The S Fresh restaurant franchisee will open 100 new Arby’s locations in South Korea over the next decade, with the stores beginning to open next year.

The move marks the biggest expansion yet for the roast-beef chain in Asia, and it could set the stage for a push into Japan as well.

Arby’s currently has two restaurants apiece in South Korea and Japan, but they’re on US military bases.

“Moving into South Korea will open the doors to other parts of Asia,” said Tim Murphy, president of the overseas business at Arby’s parent Inspire Brands Inc. “We want to be a high-growth company, and international is helping us to do that.”

Arby’s, which has more than 3,400 restaurants globally, has staged a comeback in recent years with a menu focused on meats, including venison, brisket and Greek gyros.

The question now is how well its formula will work in individual countries. Arby’s already operates in Canada, Egypt, Kuwait and Turkey, and it’s planning more locations in Egypt soon.

Inspire Brands chief executive Paul Brown also faces challenges at home. The chain’s US system sales last year rose just 1.3%, compared with growth of 4% or higher in each of the previous three years, according to Technomic data.

Fast-food chains are coping with a saturated market in the US, as well as pressure from minimum-wage hikes, a labour shortage and higher fuel costs. That’s led more of them to look overseas for relief.

Taco Bell is pushing growth abroad, with a particular emphasis on Brazil, Spain and Australia. Burger King and Tim Hortons, meanwhile, are focused on China.

Murphy said there was also potential in Asia for another Inspire-owned chain: Buffalo Wild Wings. The beerand-chicken restaurant already has locations in Mexico, Vietnam and India.

Atlanta-based Inspire was formed after Arby’s owner Roark Capital Group bought Buffalo Wild Wings for about $2.4 billion earlier this year.

“Both Arby’s and Buffalo Wild Wings internationally kind of play in those lifestyle brands,” Murphy said. “It’s the place people want to be seen.”