Some brands operated by the dining franchise company The Born Korea are virtually entering the liquidation stage.
According to the industry, as of April 22, the three brands ‘Gosoku Udon’, ‘Quickban’, and ‘Baek Cheolpan 0410’ have no franchise stores nationwide. With no store operation, including direct management, it is interpreted as being in a state of substantial business withdrawal.
In the case of ‘Nakwongopchang’, only one directly managed store remains, and although the information disclosure is still registered, there are no signs of franchise expansion. Additionally, ‘Gotowok’ and ‘Seongsong Restaurant’ have been reduced to one or fewer stores nationwide, putting the brand sustainability itself at a precarious level.
In the franchise business, directly managed stores play a key infrastructure role in standardizing the franchise system, education, and menu testing. However, currently, even direct operations are not being carried out in some brands, raising questions about The Born Korea’s overall operational capacity.
Recently, legal risks have compounded, and franchise withdrawal movements are being detected even in some main brands. Although The Born Korea has not officially stated whether they will withdraw from specific brands, the increasing number of brands nearing operational suspension raises the possibility of a business structure reorganization.
The Born Korea owns a total of 25 dining brands, but as of 2023, the number of stores has decreased in 16 brands. Except for some main brands like ‘Paik’s Coffee’, ‘Hong Kong Banjum’, and ‘Yeokjeon Udon’, overall growth is slowing down.
An industry official said, “The Born Korea has consistently received criticism for having too many brands, but it has maintained due to CEO Baek Jong-won’s brand trust,” and added, “Recently, as the owner’s risk becomes prominent, franchise withdrawals and brand trust decline are occurring simultaneously.”
He continued, “In the franchise business, trust and stability are key, and in the current situation, the recovery of brands with low growth potential does not seem easy,” he analyzed.
