Weekly Briefing · 2025.11.10
Global Restaurant Franchises
Weekly Briefing
This Week’s Highlights · United States – Wendy’s plans to close 200–350 stores, while BBQ expands into 33 states · China – Only one Star Huanyang store remains open; Baek Seung‑Jung China boosts operating profit by 8% with AI · Hong Kong & Vietnam – Quarterly net profit down 65–70%; Vietnam shutters 50,000 stores in H1 · Singapore – Chick‑Fil‑A makes its first Asian entry, opening a Bukis+ on Dec 11 · Taiwan & Canada – AI‑driven chain forum creates 24,000 restaurant jobs |
This weekly briefing compiles the latest overseas franchise and restaurant‑industry developments across 10 countries and regions—including the U.S., China, Japan, Europe, and Southeast Asia—for franchisor headquarters. Use these insights to inform your overseas expansion strategy and operational decisions.
Summary:Franchise‑focused ERP FDAM
1. United States – Wendy’s plans to close 200–350 stores vs. BBQ’s expansion into 33 states
Wendy’s announces hundreds of store closures amid ongoing performance lag
Fast‑food chain Wendy’s disclosed on Nov 7 that it will shutter 200–350 locations nationwide. Interim CEO Ken Cook said the underperforming stores are dragging overall results and justified the restructuring. While Wendy’s comparable‑store sales fell 4.7%, rivals such as McDonald’s, Burger King and Shake Shack posted gains.
Closures will run from late 2025 through 2026, adding to last year’s 140‑store shutdown. However, Wendy’s new chicken tender, Tendys, generated strong demand—selling out at some sites before advertising—suggesting a possible rebound.
BBQ reaches 33 U.S. states with its entry into South Carolina
Genesis BBQ, a Korean chicken franchise, opened two new locations in Indian Land and Greenville, South Carolina on November 5, marking its entry into the 33rd U.S. state. The brand is accelerating its Southeast U.S. expansion after Florida, Alabama and Georgia.
The Indian Land store is a 12‑pyeong café‑style outlet near a golf club, while the Greenville location focuses on delivery and takeout near the airport and a university. Both sites also serve Korean side dishes such as fried rice and tteokbokki. Through its U.S. subsidiary, BBQ aims to exceed 500 stores by 2026 and was ranked 180th in NRN’s 2025 Top 500 U.S. restaurant franchise brands, climbing for the fourth consecutive year.
Key takeaways for the Korean headquarters The U.S. market now rewards unit profitability over sheer store count. Korean brands should prioritize per‑store profit structures and headquarters‑level standardization alongside expansion speed. BBQ’s split‑format strategy—café‑type versus delivery‑focused stores that also offer Korean menu items—provides a useful model for format differentiation. |
2. China | Star Hwanyang ‘SangSangGyeom’ left with a single store; Baek Seung‑Jung China boosts operating profit by 8% with AI
Star Hwanyang ‘SangSangGyeom’ now has only one location nationwide
Singer Xue Zhiqian’s invested star store "Sang Sang Gyeom" announced the closure of its last Guangzhou location on November 6, leaving only the Shanghai Nanjingdonglu franchise location nationwide. Launched in 2012 with 600,000 yuan and proceeds from a house sale, Sang Sang Gyeom once operated eight company‑owned stores and 20 franchise locations, generating 1.5 million yuan in daily sales. After Xue Zhiqian stepped back from management, the brand lacked differentiated competitiveness and relied on one‑time “check‑in” customers, resulting in long‑term failure.
Chen He’s ‘XianheZhuang’ fell from 800 to 25 stores, and Zheng Kai’s ‘HuoFengXiang’ is down to 31, reflecting a broader retreat among China’s star franchise chains.
Baek Seung‑Jung China reports an 8% rise in Q3 operating profit, driven by digital and AI innovation
Yum China announced on November 4 that its Q3 operating profit grew 8% (US$400 million). Same‑store sales rose 1% and transaction volume increased 4% for the 11th straight quarter, indicating steady growth. As of September, the company operated 17,514 restaurants (KFC 12,640; Pizza Hut 4,022) and opened 536 new sites in Q3 alone.
Digital orders now account for 95% of total sales, and delivery sales jumped 32% to represent 51% of revenue. Under Kentucky’s ‘Conwee Coffee’ brand, the chain surpassed 1,800 locations, cementing its coffee‑market presence. Yum China earned Harvard Business Review’s ‘Lam Charan Management Practice’ award for AI‑driven workforce and operations innovation, underscoring its tech‑led growth.
Key takeaways for the Korean headquarters Brands that rely solely on star marketing or “SNS check‑in” demand quickly lose momentum, whereas companies like Yum China that build digital and AI infrastructure around operational data sustain stable growth. How headquarters aggregate and apply operational data becomes a decisive factor for long‑term success. |
3. Japan | McDonald’s phases out paper straws, expands alternative‑material use
On November 4, McDonald’s Japan announced it will stop using paper straws and adopt alternative materials, prompting a wave of change across the restaurant sector. While paper straws were praised for eco‑friendliness, consumers complained they became soggy and uncomfortable when wet. Major chains, including McDonald’s, are shifting to bio‑plastic and biodegradable plastic straws that balance functionality with environmental performance.
Japan’s fried‑chicken franchise ‘Dorisho’ revealed on November 11 that it will open a new store in Takashimadaira, Tokyo. As a brand under SRS Holdings, Dorisho is rapidly expanding nationwide, gaining a foothold with affordable pricing and consistent quality among local diners.
Key takeaways for the Korean headquarters Now is the moment for the Korean franchisor headquarters to adopt an ESG‑aligned package and consumables policy that also enhances customer experience. When decisions that franchise locations previously made independently shift to a corporate standard, both brand consistency and environmental value are managed together. |
4. Hong Kong | Cafe de Coral issues third consecutive performance warning, forecasting a 65‑70% profit drop
Hong Kong’s leading fast‑food chain Cafe de Coral announced on November 9 its third straight performance warning, projecting a 65‑70% year‑over‑year decline in semi‑annual net profit through September. The chain operates 566 locations; dividing the estimated HK$46.8 million semi‑annual profit by the store count yields an average monthly net profit of roughly HK$13,800 (≈ US$1,800) per outlet.
Reduced tourist spending, lower consumption by Hong Kong residents on the mainland, and intensified competition from low‑price two‑side dishes (两餸饭) are the main drivers. Daegarack notes that the economies‑of‑scale and high‑turnover model are being challenged by shifting consumer patterns, and proposes four reform pillars: store consolidation, menu simplification, supply‑chain upgrades, and integrated operations.
Implications for franchisor headquarters Even a large number of franchise locations cannot offset a weak per‑store profitability; the entire franchisor headquarters feels the impact. Daegarack’s strategy of defending core brands while expanding segmented subsidiary brands offers a useful reference when diversifying a Korean headquarters’ reliance on a single brand. |
5. Vietnam | More than 50,000 restaurant closures in H1 2025, triggering a massive industry restructuring
Vietnam’s food‑service sector is undergoing an unprecedented restructuring, with over 50,000 outlets slated to close in the first half of 2025. Rising ingredient costs, labor, and rent, combined with softened consumer demand, are the root causes. H1 2025 F&B sales reached VND 4,061 billion—just 58.9% of total 2024 sales—and store counts in Hanoi and Ho Chi Minh City fell by more than 11%.
Vietnam now has roughly 299,000 dining establishments, a 7.1% decline, and only about 5,000 modern chain outlets, leaving the market dominated by small operators. Yet foreign brands such as CHAGEE (China), The Venti (Korea), and Saizeriya (Japan) continue to enter. Analysts stress that clear positioning, differentiated products, and loyal customers are the keys to survival.
Implications for franchisor headquarters Vietnam is transitioning from a fragmented landscape to a chain‑growth opportunity. Korean franchisor headquarters should go beyond simple market entry and prepare a clear brand positioning, differentiated product lines, and a standardized system for managing franchise location data to enable stable expansion. |
6. Singapore | Chick-fil‑A makes its first Asian debut… opening at Bugis+ on Dec 11
Chick-fil‑A, the third‑largest fast‑food chain in the United States, announced on Nov 3 that it will open its first Asian restaurant at Bugis+ in Singapore on Dec 11. The company is investing $75 million over ten years and will observe its founder Truett Cathy’s tradition of closing on Sundays.
The flagship chicken sandwich (pressure‑cooked chicken with dill pickle) and the Spicy Deluxe sandwich will be on the menu, alongside a Singapore‑specific Spicy Chili Sauce. Chick-fil‑A is donating SGD 25,000 to the Singapore Food Bank and will match that amount for each new store opening. Its “Shared Table” program also channels surplus food to nonprofit partners.
Implications for franchisor headquarters Chick-fil‑A’s approach combines a decade‑long investment, locally tailored menu items, and simultaneous ESG initiatives. Korean franchisor headquarters should similarly design Southeast Asian roll‑outs that embed community engagement from day one rather than focusing solely on rapid store count growth. |
7. Taiwan | AI meets chain retail – 2025 Chill Go Forum scheduled
The Taiwan Chain Franchise Association (TCFA) announced on Oct 31 that it will host the “2025 Chill Go Brand Convergence, AI‑Driven Local Service Upgrade” forum and exhibition on Nov 13 at the International Conference Center, Taipei Medical University Hospital. Over 30 national chain brands and smart‑tech partners will discuss “smart, sustainable, localized” solutions.
Taiwan’s chain‑retail sector generates more than TWD 3 trillion annually, accounting for half of total retail and food‑service output. By 2025, the number of chain outlets will exceed 118,000. TCFA emphasized that AI is not merely an efficiency tool but a catalyst for brand innovation, and that ESG has evolved from a responsibility into a universal language of corporate symbiosis, urging the industry toward digital transformation and sustainability.
Implications for franchisor headquarters Taiwan’s government treats AI and ESG as core pillars for chain retail. Korean franchisor headquarters should anticipate similar evaluation criteria in future support programs or overseas expansions, making it increasingly critical to capture clean operational data in an ERP that integrates AI assistants. |
8. United Kingdom | November sees a surge of high‑profile restaurant openings… Bonheur, Mezzogiorno draw buzz
London is experiencing a wave of major restaurant launches in November. Former Gordon Ramsay chef Matt Abé opened Bonheur by Matt Abé at Mayfair’s Le Gavroche, offering a five‑course Journey (£195) and a seven‑course Dream (£225) tasting menu. Italian chef Francesco Marchetti debuted Mezzogiorno at the Corintia Hotel, featuring tortelli, fregola, and bistecca.
Velvet Taco, a U.S. brand, opened its first U.K. location at Broadgate Circle, offering its Global Flavor Taco. London’s restaurant scene is heating up as upscale fine‑dining and global‑fusion concepts vie for market share.
Key takeaways for franchisor headquarters in Korea London supports both chef‑driven IPs and global‑fusion brands. Korean brands entering the U.K. should prioritize a phased strategy—chef IP + flagship, then casual expansion—rather than a single‑category push. |
9. Canada | Restaurant industry to add 24,000 jobs, with sales growth projected at 5.4%
According to Restaurants Canada’s Q3 report released on November 3, the Canadian restaurant sector will create 23,600 jobs in the first nine months of 2025, surpassing the total private‑sector target of 21,200. Pre‑inflation sales are expected to rise 5.4% in 2025, outpacing the prior forecast of 2.7‑3.7%.
Real‑term growth after inflation adjustment is projected at just 2.1%. Seventy‑four percent of Canadians are cutting back on dining‑out and delivery due to higher living costs, while operators face cost spikes of 14% for insurance, 13% for food supplies, and 11% for labor. Technology adoption is hindered by high upfront costs (51%) and uncertain ROI (43%).
Key takeaways for franchisor headquarters in Korea Canada offers job growth but intense cost pressure. When expanding, Korean headquarters should focus first on a menu architecture and standardized ordering‑logistics system that can absorb labor‑ and ingredient‑cost volatility, rather than merely scaling store count. |
10. Indonesia | SIAL Interfood 2025 opens Nov 12… opportunities for F&B sourcing and franchise partnerships
From November 12‑15 at Jakarta’s JIEXPO, SIAL Interfood 2025 will gather raw‑material, processing, packaging, and HORECA solution providers in one venue—an ideal platform for overseas brands seeking local distribution and cold‑chain partners.
Key takeaways for franchisor headquarters in Korea Korean headquarters should explore a "local sourcing + OEM processing" model to secure cost‑competitive inputs, and pilot chicken, snack, and café formats as delivery‑ and take‑out‑only SKUs. |
Insights for this week
This week’s global restaurant landscapeis a crossroads of restructuring and opportunityBrands with large footprints—such as Wendy’s in the U.S., Da Garak in Hong Kong, or 50,000 stores in Vietnam—still face restructuring if unit profitability falters. Conversely, brands like Baek Seung‑Jung China and BBQ, equipped with digital/AI infrastructure and standardized operations, are charting growth curves in the same markets.
Taiwan’s government now defines AI as a core agenda for the food‑service sector, and Chipfly is launching a 10‑year ESG‑backed investment plan. Korean headquarters should monitor the following trends.
Four trends Korean headquarters should track ① Unit‑level profitability— Not the number of locations, but per‑location profitability is the key metric for headquarters decisions ②Headquarters standardization capability— Accumulate menu, order, staffing, and inspection data using a unified standard. ③Digital and AI infrastructure— Integrate AI usage with headquarters operational data, extending beyond POS and ERP. ④Long‑term market entry planning— Focus on building community relationships from year one, rather than merely expanding the number of locations. |
Franchise headquarters operations ERP
All headquarters functions from A to Z,
FDAM franchise ERP
Manage sales, contracts, openings, and operations within a single system,
Standardizing each franchise location’s operational data to headquarters standards.
