Popeyes Korea shrank from 200 branches to 10 and closed after no buyer would take it

TS Food & System, a subsidiary of TS Corporation, said on 4 December 2020 that it would end its Korean licence with Popeyes' US headquarters within the month after failing to find a buyer. It had opened the first Popeyes restaurant in Seoul's Apgujeong district in 1994 and, riding the popularity of Cajun fries, expanded to over 200 branches at the peak.

A flurry of new entrants offering comparable products, including similar taste, at affordable prices cut into sales, and the Popeyes outlet count fell to 10 by 2019. In 2019 TS Food & System's sales were ₩12.4 billion and it posted a ₩1.2 billion operating loss, despite restructuring its restaurants' business management to recover brand value.

The company had approached candidates to take over the licence. According to sources cited by the Korea Times, SPC Group, which operates Shake Shack and Eggslut in Korea, was approached and declined. A company official said it had tried to sell the brand after sales declined but failed, and that amid COVID-19 it decided to close.

New entrants offered products similar in taste at affordable prices, per the Korea Times.

The Popeyes brand's popularity, built on Cajun fries, faded as the number of outlets shrank from over 200 to 10.

The operator tried restructuring its restaurant management but sales and profit kept falling.

No buyer would take the licence: SPC Group reportedly declined, and COVID-19 made the outlook worse.

A first-mover brand can lose its place to cheaper copycats. Restructuring a shrinking network is rarely enough without a stronger product.

TS Food & System said it would terminate the licensing contract with Popeyes' US headquarters within December 2020. The Korea Times article reports no further developments.