If we say we chose Zhengzhou, China, as the first destination for K-Food’s overseas expansion, everyone raises an eyebrow. “Why Zhengzhou, not Shanghai or Beijing?”
To be honest, we also initially looked at tier-1 cities. But the more we analyzed, the more Zhengzhou stood out as the answer. Let me explain why.
What is Zhengzhou?
It’s the capital of Henan Province in central China. Henan Province has a population of 120 million. That’s more than double Korea’s population. Zhengzhou city itself has a population of 13 million. It’s larger than Seoul.
You might ask, “If the population is large, isn’t the competition fierce?” But this is where it gets interesting.
Why Zhengzhou is Optimal
Costs are overwhelmingly low
This is the most crucial point. When expanding overseas, fixed costs are the scariest part.
The monthly rent in Zhengzhou is approximately 3 million won. Considering Hong Kong’s 40 million won, it’s 1/13. Labor costs are also around 2 million won per person. That’s about 1/3.5 of the 7 million won in the US.
There are no better conditions for testing at the seed stage. With the same budget, you can experiment longer and more extensively.
A logistics hub
Zhengzhou is called the “Center of the World.” It’s a logistics hub connecting to all parts of China. It’s also a primary processing and distribution center for food ingredients.
Food ingredient sourcing costs are significantly reduced. It’s much more economical than bringing goods in from coastal cities.
Less competition
Shanghai and Beijing are already overflowing with Korean restaurants. If you go near Koreatowns, there are places selling tteokbokki and samgyeopsal on every street. It’s difficult to differentiate yourself.
Zhengzhou is different. Interest in K-Culture is high, but there are no places offering a proper K-Food experience. It’s a **blue ocean**.
High growth potential
The Chinese government is focusing on inland development. Zhengzhou is one of the cities benefiting from this. Income growth rates are higher than in coastal cities. If you enter now, you can ride the wave as the market grows.
Looking at the actual numbers
We ran a simulation. Based on a Zhengzhou popup store.
Estimated monthly operating profit is approximately 33 million won. The profit margin is 92%. This is the highest efficiency among the 6 countries analyzed.
With the same amount of money, while you can operate one store in Hong Kong, you can test more than 10 in Zhengzhou.
Results are already emerging
We’re not just talking theory. We’re actually operating there.
- Meichun – A Korean gukbap (rice soup) specialty restaurant. Tested in a Zhengzhou popup, and then opened a directly managed store with verified menus.
- DK Kitchen – A Korean-style donkatsu (pork cutlet) and pasta specialty restaurant. After the success of its first branch, it consecutively launched its second.
How these two brands localized in Zhengzhou, and what customer reactions were like. This kind of data is continuously accumulating.
What’s next after Zhengzhou?
Once the model is verified in Zhengzhou, we will expand.
- Phase 1 (2026-27): Zhengzhou, China, Japan – Focus on markets with high K-Culture acceptance
- Phase 2 (2027): Vietnam, Thailand, Taiwan – Large-scale expansion with accumulated data
- Phase 3 (2028+): USA, Europe – Entry into premium markets
We’re not rushing. We will thoroughly prove it in Zhengzhou before moving on. Because once it’s confirmed to work in one place, we can confidently do it elsewhere.
Would you like to start your K-Food overseas expansion in Zhengzhou?
Inquiries: customer@spotable.kr
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