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[TV Report=Journalist Jin Joo-young] It has been confirmed that several franchise brands operated by The Born Korea, led by Baek Jong-won, are entering a phase of consolidation.
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According to the restaurant industry on the 22nd, three of The Born Korea’s franchise brands – ‘Gosok Udon’, ‘Quick Ban’, and ‘Baek Cheolpan 0410’ – currently have zero franchise locations nationwide.
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The ‘Nakwon Gopchang’ brand, in contrast, runs only one directly managed store, and while its information is disclosed, there has been no expansion of its franchise. Brands with no outlets are effectively considered to be withdrawing from business activities.
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Additionally, some brands like ‘Go to Wok’ and ‘Seongseong Restaurant’ are merely maintaining a nominal presence. The number of locations has dropped to one or fewer nationwide, and the absence of directly managed stores raises doubts about the brands’ viability.
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Directly managed stores are considered the ‘basic infrastructure’ for running a franchise system, essential for brand standardization, training, and product testing. However, The Born Korea’s capacity for managing these operations at the corporate level is dwindling. Legal risks that have surfaced recently are also prompting franchise withdrawals from major brands.
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The Born Korea has not yet officially announced a complete withdrawal of these brands, but the situation is being analyzed as being close to a practical halt in operations.
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Despite owning a total of 25 brands, more than half, 16 brands, saw a reduction in the number of outlets as of last year. Excluding key brands such as ‘Paik’s Coffee’, ‘Hong Kong Banjum’, and ‘Yukjeon Udon’, the company is experiencing an overall slowdown in growth.
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An industry insider noted, “There have been criticisms that The Born Korea had an excessive number of brands, but it endured by leveraging Baek Jong-won’s reputation and reliability. Recently, with the emerging owner risks, brand credibility and franchisee departures are occurring simultaneously.”
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They added, “In franchise businesses, trust is paramount, and under the current circumstances, it seems difficult for underperforming brands to recover.”
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Journalist Jin Joo-young [email protected] / Photo= TV Report DB
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