CJ Freshway and What the Burger sign KRW 50 billion annual food supply deal, with plans to enter contract catering

CJ Freshway has signed a food supply agreement worth KRW 50 billion a year with South Korean gourmet burger franchise What the Burger. The partners plan to extend their collaboration beyond supplying outlets nationwide to include menu development and access to contract catering sales channels. For those following South Korea’s franchise market, the partnership is noteworthy because it addresses both the supply infrastructure needed for store expansion and sales opportunities beyond the restaurant network.

Around 100 food products to reach outlets nationwide from November

On 10 November 2026, CJ Freshway announced that it had signed an annual food supply agreement worth KRW 50 billion with Rising Star, the operator of What the Burger. Supplies are scheduled to begin in November, covering around 100 food products for outlets across South Korea. The core of the announced agreement is the provision of food supplies needed to operate the nationwide network.

The companies previously held a memorandum of understanding signing ceremony on 13 October at CJ Freshway’s Sangam headquarters in Mapo-gu, Seoul. Attendees included Rising Star chief executive Ahn Jun-hyeok and Kim Beom-jung, head of CJ Freshway’s platform business division. Building on food supply, the partnership is intended to extend into product development and broader distribution channels for the restaurant brand.

It is important to distinguish what the contract value represents. The KRW 50 billion annual figure is the value of the food supply agreement between the two companies. It does not represent consumer sales across What the Burger’s network or the turnover of an individual franchise outlet. This figure alone should not be used to assess a particular outlet’s trading performance or the profit available to its franchisee.

The coverage of around 100 products and outlets nationwide indicates the scope of the agreement. In day-to-day operations, however, the terms on which essential ingredients are supplied matter more than the number of products. For franchisees, the practical next step is to check the ordering arrangements and supply terms that will apply to their own outlets.

Network grows to around 250 outlets since its first opening

What the Burger opened its first outlet in 2021. It has expanded with a focus on gourmet burgers featuring signature sauces at affordable prices, reaching around 250 outlets at the time of the announcement. Around 100 new outlets were reported to have opened in key commercial areas nationwide over the preceding year.

The food supply agreement is linked to this franchise expansion. As more outlets open, securing the ingredients and supply partner needed to serve a national network becomes part of the expansion plan. Alongside news of What the Burger’s growing footprint, the announcement sets out the scale and scope of the supply partnership supporting those outlets.

The approximately 100 openings over the past year and the current total of around 250 outlets are different measures. The former counts new openings during a specified period; the latter is the total network size at the time of the announcement. New openings should not automatically be treated as net outlet growth, nor as evidence of rising sales at individual franchises.

For prospective franchisees, the pace of expansion and total outlet count are starting points for assessing a brand, not sufficient grounds for an investment decision. A large supply agreement does not, in itself, establish that the operating conditions of a proposed outlet are suitable. Expected local demand, operating costs and ingredient purchasing terms all require separate assessment.

Exploring contract catering beyond burger restaurants

The companies plan to collaborate on menu development and new distribution channels as well as food supply. One proposal is to introduce What the Burger menu items into contract catering. This would allow consumers to encounter the brand’s products in catered settings, rather than only by visiting a burger restaurant.

This proposal should be distinguished from the nationwide franchise supply arrangement. Supplying outlets is a specified part of the agreement, while introducing menu items into contract catering is a future area of collaboration. It would therefore be premature to assume that catering sales have already begun or generated additional revenue. What the announcement confirms is a plan to explore this channel together.

The menu development plans should be read in the same way. Rather than limiting the relationship to supplying existing ingredients, the companies have included product development within the scope of their collaboration. This distinguishes the agreement from a straightforward supply deal. However, new product launches and their sales performance will need to be assessed as the plans are implemented.

For the franchise sector, the key point is that the partnership covers both outlet expansion and sales channels outside the restaurant network. Increasing the number of franchise outlets and introducing existing menu items into other sales settings do not necessarily serve the same objectives or produce the same results. Each route will need to be examined separately to assess the partnership’s significance in practice.

Franchisees should focus on applicable terms, not just contract value

The announcement becomes clearer when the agreed supply arrangements are separated from future business plans. The KRW 50 billion annual agreement and the supply of around 100 food products to outlets nationwide form the core of the partnership. Menu development and entry into contract catering are areas in which the companies intend to expand their collaboration.

Franchisees should focus on matters that directly affect their own operations. They can check the products covered, ordering procedures, delivery terms and any changes to existing arrangements against guidance from the franchisor. These are practical checks for translating news of the supply partnership into operating decisions, not an indication that any particular terms have changed as a result of the agreement.

The results of the collaboration between the franchisor and its supply partner should also be judged by implementation rather than contract value alone. How nationwide supply operates, which products emerge from joint menu development and whether contract catering channels actually open up are all points to monitor. Separating plans from outcomes helps readers assess the brand’s expansion without inflated expectations.

In practical terms, assess the nationwide supply agreement separately from plans for new sales channels. Existing franchisees should prioritise the supply terms applicable to their outlets, while prospective franchisees should first examine individual outlet operating costs and contractual terms.