Ediya Coffee expands to Malaysia following Guam

South Korea's homegrown coffee chain Ediya Coffee announced on Friday that it has signed a master franchise agreement in Malaysia, marking the beginning of its full-scale global expansion.

A master franchise is a method where, instead of directly entering a foreign market, a business signs a contract with a local company, which then sells franchise business rights to individuals who wish to open franchises.

Ediya Coffee's partner is a consortium corporation formed by a dining franchise company and a distribution specialist.

Ediya Coffee aims to open three stores in Malaysia within the year and expand to 200 stores within five years.

It will directly distribute coffee beans and ingredients produced at its own roasting plant to Malaysia. Ediya Coffee plans to use this entry into Malaysia as a stepping stone to expand its business into the global halal market.

"We hope that entering the Malaysian market will lay the foundation for pioneering the Southeast Asian coffee market," said Ediya Coffee Chairman Moon Chang-ki.

Ediya Coffee opened its first overseas franchise in Guam last December. The company is set to become the first in the industry to open 4,000 stores. Currently, it operates approximately 3,000 stores. Ediya Coffee also exports stick coffee and ready-to-drink beverages to 23 regions including the United States and Hong Kong.

Write to Hyeong-Ju Oh at ohj@hankyung.com