Top brand Tanghua Kungfu posts double-digit growth, nears 600 stores

Intensifying competition squeezes operating profit even as chains expand

A Tanghua Kungfu malatang store [Korea Tanghua Kungfu]
A Tanghua Kungfu malatang store [Korea Tanghua Kungfu]

As malatang cements its place as a mainstream dining option rather than a passing craze, competition among brands has grown fiercer than ever.

Korea Tanghua Kungfu, operator of the top-ranked malatang brand Tanghua Kungfu, posted sales of 25.5 billion won ($16.6 million) last year, up 14.6 percent from the previous year, according to industry data released Wednesday. Operating profit rose 5.0 percent to 11.1 billion won.

CLK F&B, which operates the Chunri Malatang brand, also recorded sharp growth. Sales climbed from 6.2 billion won in 2023 to 11.4 billion won in 2024, then to 14.5 billion won last year. Operating profit reached 4.4 billion won last year, solidifying the brand's position as the industry's second-ranked player.

A generational shift is underway among malatang brands. Once the second-ranked brand, 'Sorim Mara' has fallen sharply. Sales at its operator, GC Company Global, plunged 68.0 percent year-on-year to 2.5 billion won last year. Operating profit shrank 82.6 percent, from 600 million won to 100 million won.

'Shinryongpu Malatang' operator G&G Universe kept sales above the 10 billion won mark at 10.8 billion won, but operating profit collapsed 98.9 percent to just 3.23 million won. 'Lahongbang Malatang' operator Lahong F&B also saw sales rise 32.4 percent to 6 billion won, yet operating profit fell 34.4 percent to 500 million won. First-generation brand 'Lahwa Kungbu' operator Hoepung Food also lost ground to rivals, posting sales of 4.9 billion won and operating profit of 100 million won last year — down 12.3 percent and 36.1 percent, respectively, from the previous year.

The proliferation of stores has been a major factor, as malatang has become a go-to dining choice for younger consumers. Market leader Tanghua Kungfu operates 589 stores, the most of any brand in the country. Chunri Malatang has more than 200 franchise locations. Sorim Mara and Lahwa Kungbu each have around 180 stores, while Lahongbang Malatang operates about 150.

"The mara flavor has become a steady seller — Outback Steakhouse even launched a mara-flavored version of its long-popular Toowoomba pasta," one industry official said. "Competition among brands to attract new franchisees will only intensify going forward."


spa@heraldcorp.com