Lotte GRS, the restaurant service arm of the Lotte Group of South Korea, is preparing to launch its flagship brand “Lotteria” in the Philippines, targeting at least 30 store openings in five years, the Department of Trade and Industry (DTI) said.
The Lotteria project was one of the outcomes of the business meetings held by DTI Secretary Cristina Roque in Seoul on May 16, the DTI said in a statement on Wednesday, without specifying the amount of investment.
On its website, the Lotte GRS describes Lotteria as South Korea’s leading hamburger franchise, which operates over 1,600 stores in seven countries.
The DTI added that other South Korean companies with which Roque engaged in Seoul, expressed interest to invest in joint ventures, master franchise agreements and localized operations that will generate employment, strengthen supply chains and modernize retail distribution in the country, beyond exporting their brands.
The DTI declined to name the companies at this point, but said these firms have expressed plans to introduce modern convenience store formats tailored to the urban Filipino lifestyle, building on their success in markets such as Vietnam and Mongolia through partnerships with local operators.
The DTI said the companies committed to local sourcing. Currently, more than 95 percent of the products offered by these companies in their overseas stores have been sourced within the host countries.
Products being sourced within host countries include fresh items such as fruits, vegetables, sandwiches, and salads, the DTI said.
The Philippines could benefit from these South Korean firms’ operational expertise and advanced retail models and technology, including integrated digital commerce platforms and last-mile delivery services, Roque said in the statement.
The DTI said other South Korean firms have been exploring opportunities in restaurant expansion and import-export channels for Philippine agricultural and seafood products.
It added that one company, which recently signed a partnership with a Philippine firm, has scheduled its first store opening in Manila for this August but the DTI declined to disclose details.
