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Nojeok Hill: My View from the Top - McDonald's 20-Minute Home Delivery Service

There are just two McDonald's outlets in Ansan and one is right at the foot of Nojeok Hill. It is located in the food court at Homeplus, which is the very successful Korean discount chain run by Tesco of the UK. We eat at Mickey D's occasionally, but not particularly often, mainly because there are way too many excellent Korean food options available.

11-14-2009 1-26-25 AMWhile McDonald's does a decent business in Korea, the stores near us are seldom packed. Getting to the restaurants can be a hassle too, especially if finding a parking place is hard and/or costs money.

Neither of the two McDonald's stores offers a drive-though, either. Indeed, it's only at Lotteria, a rapidly growing Korean competitor of McDonald's, where I can order, receive and eat my food in the car. And the Lotteria menu is remarkably creative; for example, I enjoyed a Shrimp/Avocado Burger there last week!

But McDonald's is experimenting with new ideas, too. They've started offering coffee and an Egg McMuffin for breakfast; something Koreans aren't used to. We've been a couple times in the morning and I think we were the only people in the store both times, so it's hard to say this has been a raging success.

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And some time back, McDonald's introduced a home delivery service through a national toll-free number (its 1600-5252, in case you're interested). When placing the first order, you give the operator your address, but after that, the system automatically links the address to the phone number and placing an order is as simple as dialing in and saying what you want. Takes all of 30 seconds... and within about 20 minutes, the food is brought by motorcycle delivery: cold food in one insulated pack and hot food in another. 

I was home alone today and rather than make lunch myself, I ordered by phone and this friendly chap brought it over. Since delivery is free (home food deliveries are ALWAYS free in Korea, it seems), it cost me W5,500 (about US$5)... pretty competitive, I'd say, but still, I don't know if many Koreans are ordering hamburgers from home.

 

In the news this week, I read that McDonald's is planning to open 1,000 new stores next year, including many in Asia. I wonder how many will be in Korea, though. (In fact, one McDonald's store in Ansan closed a few years ago.) With the competitive Korean market, I wouldn't be surprised if they are planning to take their investment dollars to more promising Asian countries.

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My $5 McDonald's lunch today was delivered in 20 minutes for free!

Indeed, Korea has been a tough market for many American corporations. Wal-Mart left in 2002 after suffering huge losses. In today's Jungang Daily (세계적 온라인 서비스, 한국선 왜 고전하나), there is a story about how Second Life and MySpace have given up in Korea, most Koreans don't seem to have heard of Facebook, and Google captures less than 10% of the search market. It's all the more difficult to understand when I look at the apparently weak Korean competition these online companies face. 

On the other hand, you can barely find a seat at a Starbucks in Korea in spite of the fact that Starbucks coffee prices here are reported to be the highest in the world and General Motors (of all companies!) is a big player in automobiles since their acquisition of Daewoo Motors over ten years ago.

I'm still working through the reasons why some foreign brands succeed, while others fail so miserably here. It's hard to make sense of sometimes. Meanwhile, I keep hoping that McDonald's will break a profit on this home delivery service so I can continue to enjoy it.

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