Exterior view of the Lotteria branch in Vietnam. (Lotte GRS)

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Lotteria, South Korea’s major burger chain, is on the verge of surpassing 1 trillion won ($694 million) in annual sales, thanks to innovative strategies and internal reforms by its operator, Lotte GRS.

Following a February renovation, Lotteria’s Guro Digital Station branch reopened as a hybrid location combining Lotteria and Krispy Kreme Doughnuts, attracting more customers by offering both burgers and doughnuts under one roof.

The store also introduced the Alpha Grill, a robotic system for cooking burger patties, boosting efficiency and sales.

Lotteria is Lotte GRS’s core business, accounting for roughly 70 percent of the company’s annual revenue.

The remaining 30 percent comes from other food brands like Angel-in-us and Krispy Kreme Doughnuts, as well as food and beverage outlets at Incheon International Airport.

After peaking in 2017 with consolidated sales of 1.08 trillion won, Lotte GRS faced years of decline, with revenue plunging to 683.1 billion won in 2020 as the saturated burger market intensified competition.

The entry of global brands like Gordon Ramsay Burger and Five Guys further heightened challenges.

In response, Lotte GRS shifted its focus from expanding Lotteria’s store count to enhancing its menu and modernizing existing locations.

The strategy has resonated with younger consumers, particularly those in their teens and 20s.

While many brands pursue traditional American-style burgers, Lotteria stands out with Korean-inspired flavors, appealing to customers across age groups.

The company is also revamping store interiors to attract customers.

Renovations at branches such as Sookmyung Women’s University Station, Sillim Station, and Gangneung Gyodong have boosted foot traffic.

Lotte GRS is eyeing international expansion as well.

The company has already established legal entities, LOTTE GRS USA and LOTTERIA USA, in preparation for opening its first U.S. branch next year.

Lotteria operates in six countries, including Vietnam, Myanmar, Cambodia, and Laos, with over 305 international outlets—more than half of which are in Vietnam.

To improve efficiency, Lotte GRS operates a production facility in Vietnam to process burger patties and chicken products, some of which are exported to Korea. The company plans to increase its Lotteria locations in Vietnam to 300 by 2027.

In addition to its burger chain, Lotte GRS has diversified into other ventures. Last year, it secured food service rights at Incheon International Airport, where it now operates around 40 food and beverage outlets across Terminals 1 and 2.

Earlier this year, the company also entered the dessert market with Chocolat Palette, a chocolate dessert café with two locations in Songpa District in southern Seoul.

Lotte GRS attributes its turnaround to internal reforms as well.

In April, the company relocated to a new headquarters, 79 Square, in Songpa District, fostering a renewed organizational spirit. It also streamlined its portfolio by selling its struggling T.G.I. Friday’s brand in 2021.