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* Quality (high-quality products) * Cleanliness (clean and pleasant restaurants)
* Service (customer-oriented care) * Time (quick and courteous service)
A forward-looking enterprise that values customers
and cares for the environment
A company dedicated to providing nutritious
food to improve the quality of life
An organization built around cooperation and mutual benefit
Lotteria Restaurants
The History of Lotteria
Since opening its first restaurant in 1979, Lotteria has led the Korean restaurant industry
with its steady and rapid growth. This was made possible through its persistent focus on
customer-oriented service and the promotion of public health and welfare.
The company's recent growth record of 30 to 40% per year is unprecedented in the
Korean restaurant industry. This impressive feat is the result of unrelenting innovation
in management and technology, bold investments, and creative product development.
Brief Company Chronology
1970's
1980's
1990's
Oct. 2nd, 1979
Founding of Lotteria Co., Ltd.
Oct. 25th, 1979
Opening of the first fast-food restaurant
in Korea
July 1st, 1982
Opening of Restaurants in Daegu
and Daejeon (first restaurants outside of Seoul)
Dec. 31st, 1987
Sales exceed 10 billion won ($8.5 million)
March 28th, 1992
100th restaurant opens, Lotteria now the largest
restaurant chain in Korea.
Sep. 1st, 1993
Establishment of joint venture with Chinese partner in Beijing
Nov. 25th, 1994
Opening of first Lotteria restaurant in Beijing
Dec. 31st, 1994
Sales exceed 100 billion won ($85 million)
April 29th, 1995
200th Restaurant opens
Sep 20th, 1996
300th Restaurant opens
1990's
2000 - Present
Jan 11th, 1998
First place award for Brand Value (Hankyoreh Newspaper)
Sep 21st, 1998
400th Restaurant opens at Sookmyung Women's University
Jul 13th, 1999
“Bulgogi Burger” wins Consumer Grand Prize
Oct 25th, 1999
Launch of Lotteria mascot concept in celebration of its 20th anniversary
Jan 5th 2001
600th Restaurant opens
Sep 20th, 2001
700th Restaurant opens
Mar 5th, 2002
First Prize for brand marketing awarded
by the Korean Marketing Association
Jun 30th, 2002
800th Restaurant opens
Lotteria | Quality
Triple-A rating for Franchise
Excellence The Korea Management Association (KMAM)
evaluated franchise companies
in Korea and awarded Lotteria
with an overall“AAA”rating
(the highest possible). The survey evaluated the following
areas:
* Operational performance
* Management leadership
* Product quality
* Quality of Service
* Profitability
The Korea Distribution Award's
Franchise Award The 6th annual Korea
Distribution Award recognized Lotteria as
the most outstanding franchise.
Quality Awards & Recognitions
“Korea's No. 1 Brand, created
by our customers!”
President's Award Lotteria
earned the President's Award in
recognition of its efforts in promoting the production and consumption of rice.
It has developed such products
as Rice Burger, Shrimp Rice
Burger, and Kimchi Burger, all of
which contain rice as their main
ingredient, and contributed to
promoting rice consumption and
thus enhancing farm income.
Lotteria, a Symbol of Quality
Lotteria has outperformed even American fast-food franchises in Korea, further evidence
of its strength and popularity as the leader in this industry. The company has in recent years
drawn rave reviews from numerous trade journals for having the most highly recognized
brand image in Korea. This is a highly meaningful award, since brand recognition translates into company value, and even more so, because Lotteria was compared against bigname foreign chains. At Lotteria, we like to think that our brand image in Korea was created not by us, but by our customers. We will also continue to entrust Lotteria's future as a
world-class brand name to the palates of our customers.
Corporate Image Award Lotteria
was selected by the Korean
Management Association as the
restaurant having the best corporate image for two consecutive
years.
2001 Korea Standard-Service
Quality Index In an evaluation
jointly conducted by the Korean
Standards Association and Donga
Daily Newspaper, the Korea
Standard-Service Quality Index
2001 ranked Lotteria as Number 1
in the fast food division.
Lotteria | Products
Hamburgers
Chicken
Side Dishes, Desserts & Drinks
Lotteria's hamburgers are created with particular attention to local tastes, and all use only the freshest ingredients. Korean varieties include: Bulgogi Burger, Shrimp Burger, Chicken Burger, Rib Sandwich, Teriyaki
Burger, Rice Burger, Bulgalbi Burger, Cheese Burger, Kimchi Burger, and Crab Burger.
Lotteria uses only the highest quality chicken meat. The chicken
is cooked in fresh vegetable oil to ensure the best taste and nutritional value. It is offered in various dishes and uses special seasonings that have been a long-time favorite. Varieties include:
Chicken, Fire Wing, and Chicken Tenders.
Lotteria's most popular side dishes are Cheese Sticks, Corn Salad, French Fries,
Hashed Potatoes, and Spiced Potatoes (onion / cheese / chili varieties).
Our desserts are made from only the finest ingredients, and include Ice Flakes, and
Ice Cream Sundaes (strawberry and chocolate).
Lotteria - Creating the
tastes customers like
Lotteria is focused on both customer satisfaction and the promotion of sound and
healthy diets. We continuously invest in research and development to create hamburger
varieties, which are pleasing to discerning local tastes. Aggressive investment strategies, together with creative product development, have been rewarded with a 30 to 40%
annual growth rate in recent years. By 2002, more than 800 restaurants were bringing
Lotteria's outstanding products to an ever-greater number of fast food consumers.
Lotteria | Product Development
The Product Development Team also oversees quality control and sanitation,
thus controlling the entire process. The Team's mission statement is to keep the
company in its number one position through an intense focus on customer satisfaction.
Product Development
Idea Meeting
The Product Development Process
The Product Development Team and the parent company's (Lotte Group's) Central
Research Institute form a synergy that produces the best product offering possible.
Lotteria places utmost priority in customer taste preferences and needs, and conducts
ongoing surveys on customer taste preferences to compile the data necessary to develop new products.
Market
Research
The Lotte Central Research Institute is the only research team in Korea specializing in fast food. We go far beyond local competitors, who only imitate foreign
products.
Guidelines Sample Product
Testing
Customer
Preference
Survey
Research and
Development
Working-level
Meeting
Prototype
Production
The JIT System ("Just in Time")
This approach ensures freshness and great taste by starting production only
after orders are taken. It not only produces top high-quality products, but also
ensures efficiency in inventory management.
Lotteria | Chain Stores
Lotteria, the Market Leader
Lotteria is first in sales, market share, and brand recognition in Korean fast food. As the
leader in this market, Lotteria controls a 43% overall market share. Such unprecedented results come from Lotteria's commitment to 1. Product excellence 2. Outstanding
marketing 3. Customer-oriented service at each and every chain restaurant. With the
1,000th restaurant scheduled to open soon, Lotteria has ensured its position as the market leader for years to come.
Market share based on number of in-store customers (as of 12/2001)
Popeye's
Chicken
9.7
KFC
16.5
Hardee's 1.4
Burger King 7.3
Lotteria
45.0
McDonald's
20.1
Market share based on sales volume (as of 12/2001)
(100 million won)
6000
Lotteria
5000
4000
3000
McDonald's
2000
Bennigan's
1000
0
Pizza Hut
KFC
Marche、
TGI
Friday’
s
FF
FR
Domino's Pizza
Segaf Seattle's
Mister Starbucks redo Best
Pizza
Coffee
Lotteria's Building Blocks of Success
Franchise application through the main
office or one of our regional offices
Full Marketing Support Lotteria has risen to what it is today, owing to outstanding
marketing support and its extensive restaurant network. Each new outlet is offered full
marketing and promotional support, tapping into Lotteria's years of accumulated
knowledge and strategy.
On-site inspection by a regional specialist
The Restaurant Development Process
The following established steps
are how new franchises are
opened through Lotteria:
Market survey and analysis
Sales and Number of stores
(unit: 100 million won, number of chain stores)
1,300
Sales
Number of stores
Feasibility study
1 trillion
1,080
930
8,500
850
Final discussions
and decision
7,000
750
10,000
660
5,580
Contract Signing
510
4,500
8,000
411
3,244
382
6,000
316
2,574
255
4,000
1
79
19
6
12
81
19
18
26
83
19
40
49
85
19
55
51
73
63
89
98
115
148
180
2,418
1,546 2,188
2,000
87
19
89
19
91
19
93
19
95
19
97
19
1st
99
19
01
20
03
20
05
20
300th
100th
500th
400th
200th
1992. 5 Daehangno restaurant
1979. 10 Sogong #1 restaurant
·Restaurant design /
Kitchenware installation
·Stock Planning
· Manager and Associate training
1,086
1996. 9 Gwangju Unam restaurant
1995.4 Incheon Wolmi restaurant
700th
600th
2000. 4 Honam Terminal restaurant
1998. 9 Sookmyung
Women’
s University
Station restaurant
Grand
Opening
800th
2001. 12 Busan Terminal restaurant #1
2001. 1 Ansan D / T restaurant
2002. 6 Hyehwa restaurant
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Logistics Systems
F
The most critical aspect of fast food is ensuring the ongoing supply of fresh ingredients.
Lotteria's products are guaranteed fresh thanks to a "cold chain" supply system that promptly supplies raw materials to each restaurant on demand. Lotteria was the first in Korea to
establish a logistics department to increase inventory turnover and reduce spoilage losses,
thereby optimizing management of raw materials.
Giheung Logistics Center
L
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Jungbu
Logistics
Center
F
Gimhae Logistics
Center
L
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F
Lotteria | Logistics System
THE“WIN-WIN”PLAN
Lotteria channels resources into ensuring a "Win-Win" strategy with the aim to maintain close relations between the main office and its franchisees, and to create an environment of mutual trust and co-prosperity.
Additionally, Lotteria initiated a special assistance program in 1999, which offers interest-free loans for up to 10 months for restaurant repair and renovation. The program
has paid for itself by ensuring a clean and sanitary environment that leads to increased
sales.
Lotteria furthermore promotes its franchises through promotional activities including
discounts for both existing products as well as new menu introductions.
Lotteria | New Information System
Automated tools for restaurant
management
Additionally, Lotteria utilizes a POS (Point of Sales) system to automate
the entire process from customer management to accounting. This
system further optimizes restaurant efficiency by providing real-time
results on sales volume and performance per menu item.
Web-POS pilot system
All Lotteria restaurants are operated by the Web-POS System, which processes all key
activities on a real-time basis, including customer management, accounting, and sales.
The System serves as the cornerstone of Lotteria's sales expansion strategy, ensuring
the optimum efficiency in the operation of each new restaurant.
Lotteria | Personnel Development
The Fast Food Academy
Lotteria initiated Manager-specific Training in 1996, and has been
reaping the benefits ever since. The program includes:
Hamburger University
Lotteria operates a training center to educate its leadership positions in
·Sales management
·Customer management
·Ingredient management
·Accounting management
·Human resources management.
●
Lotteria, the Home of
Customer-friendly Service
The "Q.C.S.T "Training System (Quality, Cleanliness,
Service, Time)
The restaurant is divided into three different areas for training purposes:
1. The cooking area
2. The serving area
3. The sales area.
●
Training is tailored to each of these areas to create and
ensure:
·Expeditious service
·A pleasant environment
·An overall positive dining experience.
●
Pilot Shop Training
The Pilot Shop is a simulated restaurant environment where
employees engage in role-play for a more realistic training experience. These training programs are mixed with special education
programs to train not only the staff working on-site but also product
development specialists as well.
●
Service of love
Lotteria's corporate philosophy for the fast-food business revolves around relationships
with customers. All employees are trained to practice this philosophy, through well-organized and insightful programs that drive quality service.
Lotteria | JAVA COFFEE
Flavors / Varieties include:
Strawberry Smoothie
JAVA coffee
Java Cool Soda: A delightful summer drink that comes in three flavors: Figs,
Mangos, and Blueberries. Java Cool Soda is a summer favorite of many
Europeans and Americans. The juices from figs, mangos, and blueberries are
combined with soda water and ice to create a summer sensation of sweet and
refreshing coolness.
Caramel Mocha: A variation of cafe mocha, caramel mocha is a sweet-flavored
drink mixing caramel and chocolate, sure to please the sweet tooth.
Mango Soda
White Mocha
White Mocha: White Mocha is one of the most popular drinks in Seattle, the
home of world-famous coffee. White chocolate and condensed milk give the
drink a soft, silky sweetness. Steamed milk and milk foam are added to create a
delight to the palate.
Flavored Latte: Various syrups are added to coffee lattes according to customer preferences. Syrups come in seven flavors: vanilla, hazelnut, caramel,
almond, raspberry, Irish coffee, and coconut.
Cappuccino: Foamed milk with cinnamon sprinkled on top produces this
exceptional drink.
Ice Cafe Mocha
Cafe Mocha: This sophisticated drink is a product of espresso-based coffee
mixed with chocolate and whipped cream. It contains espresso, chocolate
syrup, steamed milk, whipped cream and cocoa powder.
Cafe Americano: Dark and rich espresso is diluted with hot water to create a
subtle yet strong coffee with a delightful aroma and flavor.
Kiwi Smoothie
Espresso: Often called the 'Heart of Coffee', espresso coffee is world famous
for its rich and pure taste. Select espresso coffee beans are slow-filtered to
ensure the highest quality.
Sandwich and Dessert Items Include:
·Chocolate Chip Cookie
·Mocha cookie
·Almond cookie
·Bagel Sandwich
·Croissant Sandwich
·Croissant Sandwich - European style
Java Coffee - A New Concept
Java Coffee was established to introduce the unique appeal of Seattle-style coffee and
espresso to Korea. Lotteria signed a contract with Java Trading Co. of the U.S. and
opened the first cafe in 2000, signifying the beginning of an effort to bring gourmet
coffee and coffee products to Korea.
Lotteria | Social Commitment
Lotteria - A Company that Cares
Build a Better World Campaign
Lotteria launched the "Build a Better World" campaign in 1998 to
promote environmental awareness and to help underprivileged
persons in Korea.
Campaign Against Disposable Packaging
Since 2001, Lotteria has been implementing a campaign to
reduce the use of disposable packaging harmful to the environment.
Public Etiquette Campaign
Lotteria has joined in the Korean National Public Etiquette
Campaign launched collaboratively by the Maeil Economic Daily
and the Ministry of Justice.
Love of Society
Lotteria is dedicated to returning a part of its profits to society through campaigns such
as the "Clean Environment Campaign", and the "Build a Better World Campaign".
Lotteria | Vision
Lotteria - A Company
with a Global Vision!
Lotteria Overseas
Not satisfied with being 'just' the Number 1 fast food chain in Korea,
Lotteria is now entering the global stage, bringing its experience and
industry know-how to other continents as well. We have ISO 9001 certification and have made entry into numerous foreign markets in Asia, laying a solid foundation for the global competitiveness of our brand name.
HARBIN
SHENYANG
SAN FRANCISCO
BEIJING
TOKYO
LOS ANGELES
Lotteria - A Total Restaurant Corporation
Lotteria intends to remain unchallenged as the leader in the Korean fastfood industry. Its status as the top restaurant chain comes from the company's relentless development of new products matching authentic
Korean cuisine, together with its unparalleled level of service, which
places top priority on both the customers and the environment.
More recently, it has successfully introduced coffee outlets into Korea,
further cementing a firm foundation as a total restaurant corporation.
Lotteria is a future oriented enterprise which has plans to diversify into
more business areas and serve more customers with the strength and
quality that is unique to Lotteria.
SHANGHAI
SHENCHEN
TAIPEI
BANGKOK
MANILA
JAKARTA
Global LOTTERIA
Lotteria has already translated its years of experience and know-how into offshore success, especially in China, Japan, Taiwan, and Vietnam. Lotteria's global ambitions
however do not stop there. It is also knocking on the doors of the U.S., as well as
Russia and other Eastern European countries.
Food and Beverage
Chemicals / Heavy Construction / Machinery
LOTTE CONFECTIONERY CO., LTD.
23 Yangpyeong-dong 4-ga, Yeongdeungpo-gu, Seoul, Korea
Tel: +82 / 02 / 670-6114/5
LOTTE ENGINEERING & CONSTRUCTION CO., LTD.
50-2 Jamwon-dong, Seocho-gu, Seoul, Korea
Tel: +82 / 02 / 3480-9114
LOTTE CHILSUNG BEVERAGE CO., LTD.
50-2 Jamwon-dong, Seocho-gu, Seoul, Korea
Tel: +82 / 02 / 3479-9114
HONAM PETROCHEMICAL CORP.
395-67 Daebang-dong, Dongjak-gu, Seoul, Korea
Tel: +82 / 02 / 829-3114
LOTTE HAM & MILK CO., LTD.
50-2 Jamwon-dong, Seocho-gu, Seoul, Korea
Tel: +82 / 02 / 3479-9114
LOTTE ALUMINUM CO., LTD.
1005 Doksan-dong, Geumcheon-gu, Seoul, Korea
Tel: +82 / 02 / 801-8000, +82 / 02 / 860-0001
LOTTE SAMKANG CO., LTD.
21 Mullae-dong 6-ga, Yeongdeungpo-gu, Seoul, Korea
Tel: +82 / 02 / 2629-0114
LOTTE ENGINEERING & MACHINERY MFG CO., LTD.
104 Wonhyoro 1-ga, Yongsan-gu, Seoul, Korea
Tel: +82 / 02 / 3270-0500
LOTTE FRESH DELICA CO., LTD.
48-3 Sangharisan, Guseong-myeon, Yongin-si, Gyeonggi-do, Korea
Tel: +82 / 031 / 281-575
Telecommunications / Electronics
LOTTE COLD STORAGE CO., LTD.
45 Yangpyeong-dong 3-ga, Yeongdeungpo-gu, Seoul, Korea
Tel: +82 / 02 / 675-9851/5
L O T T E R I A
THE LOTTE
FAMILY OF
BUSINESSES
KOREA FUJIFLM CO., LTD
356-3 Gasan-dong, Geumcheon-gu, Seoul, Korea
Tel: +82 / 02 / 3281-7700
LOTTE CANON CO., LTD.
996-15 Daechi 3-dong, Gangnam-gu, Seoul, Korea
Tel: +82 / 02 / 3450-0700
LOTTE DATA COMMUNICATION COMPANY
98-6 Galwol-dong, Yongsan-gu, Seoul, Korea
Tel: +82 / 02 / 3780-8800
LOTTE. COM INC.
Fl 1 Sampung Sang-ga, Inhyeon-dong 1-ga,
Jung-gu, Seoul, Korea Tel: +82 / 080 / 001-1110
Distribution / Tourism & Leisure
LOTTERIA CO., LTD.
98-6 Galwol-dong, Yongsan-gu, Seoul, Korea
Tel: +82 / 02 / 709-1114
Trading / Service Companies
LOTTE TRADING CO., LTD.
997-2 Daechi-dong, Gangnam-gu, Seoul, Korea
Tel: +82 / 02 / 3459-9600
HOTEL LOTTE CO., LTD.
1 Sogong-dong, Jung-gu, Seoul, Korea
Tel: +82 / 02 / 771-1000
DAEHONG COMMUNICATIONS CO., LTD.
Fl. 7~9 Yonsei Bldg., 84-11 Namdaemunno 5-ga,
Jung-gu, Seoul, Korea
Tel: +82 / 02 / 3671-6114
HOTEL LOTTE PUSAN CO., LTD.
503-15 Bujeon-dong, Busanjin-gu,
Busan, Korea
Tel: +82 / 051 / 810-1000
LOTTE CAPITAL CO., LTD.
142-35 Samseong-dong, Gangnam-gu, Seoul, Korea
Tel: +82 / 02 / 566-7600
LOTTE WORLD
40-1 Jamsil-dong, Songpa-gu, Seoul, Korea
Tel: +82 / 02 / 411-2000
LOTTE SHOPPING CO., LTD.
1 Sogong-dong, Jung-gu, Seoul, Korea
Tel: +82 / 02 / 771-2500
LOTTE STATION BUILDING CO., LTD.
618-496 Yeongdeungpo-dong, Yeongdeungpo-gu, Seoul, Korea
Tel: +82 / 02 / 2632-2500
LOTTE MOOLSAN CO., LTD.
29 Sincheon-dong, Songpa-gu, Seoul, Korea
Tel: +82 / 02 / 411-5101/3
LOTTE INDUSTRY CO., LTD.
98-6 Galwol-dong, Yongsan-gu, Seoul, Korea
Tel: +82 / 02 / 795-7461/4
LOTTE LOGISTICS CORP.
98-6 Galwol-dong, Yongsan-gu, Seoul, Korea
Tel: +82 / 02 / 795-7461/4
KOREA SEVEN CO., LTD.
111-7 Hyehwa-dong, Jongro-gu, Seoul, Korea
Tel: +82 / 02 / 766-2711
FOODSTAR INC.
1059-16 Namhyeon-dong, Gwanak-gu, Seoul, Korea
Tel: +82 / 02 / 580-0114
LOTTE GIANTS CO., LTD.
930-1 Sajik-dong, Dongnae-gu, Busan, Korea
Tel: +82 / 02 / 505-7422/3
Charitable / Research / Resource Companies
LOTTE R & D CENTER
23 Yangpyeong-dong 4-ga, Yeongdeungpo-gu, Seoul, Korea
Tel: +82 / 02 / 670-6114/5
LOTTE HUMAN RESOURCE DEVELOPMENT CENTER
84 Busan-dong, Osan-si, Gyeonggi-do, Korea
Tel: +82 / 031 / 370-1000
LOTTE MERCHANDISING SERVICE CENTER
98-6 Galwol-dong, Yongsan-gu, Seoul, Korea
Tel: +82 / 02 / 793-9311
LOTTE SCHOLARSHIP FOUNDATION
Fl. 26 Lotte Bldg., Sogong1-dong, Jung-gu, Seoul, Korea
Tel: +82 / 02 / 759-8548
LOTTE WELFARE FOUNDATION
Fl. 26 Lotte Bldg., 1 Sogong-dong, Jung-gu, Seoul, Korea
Tel: +82 / 02 / 759-8552
People around the world
enjoy the best taste of Lotteria.
Lotteria makes better life and happiness
for everybody visiting our stores.
Enjoyable place, Lotteria!
Lotteria Co., Ltd. 98-6 Galwol-dong, Yongsan-gu, Seoul, Korea ● http://www.lotteria.com ● Tel +82 / 02 / 709-1114 ● Fax82 / 02 / 709-1003