The Brand 'No Brand Burger'... Word of Mouth for Cost-Effectiveness, 30th Store in Sight

Shinsegae Food No Brand Burger, 30th Store Expected Just 8 Months After Launch
High Satisfaction with Price and Taste... Surpasses 1 Million Units Sold in 200 Days

[Asia Economy Reporter Lee Seon-ae] Shinsegae Food's 'No Brand Burger,' launched last year, is rapidly expanding its presence by emphasizing excellent cost-effectiveness.

According to Shinsegae Food on the 16th, No Brand Burger will open its 30th store by the end of this month. The 25th store, Ilsan One Mount branch, opened on the 3rd, and they plan to add 1 to 2 stores weekly to reach the 30th store milestone.

This number of stores was achieved within eight months since the launch of No Brand Burger in August last year. Industry insiders view this as significant, considering it was accomplished amid an economic downturn and the severe contraction of consumer sentiment due to the COVID-19 pandemic.

No Brand Burger is popular among young consumers due to its reasonable prices and high satisfaction with taste. Especially recently, as more consumers prefer quick dining or takeout due to COVID-19, steady sales have been maintained. Currently, major No Brand Burger stores sell over 1,000 hamburgers daily. In the hamburger industry, daily sales exceeding 1,000 per store are considered an excellent performance. By February, cumulative sales of No Brand Burger had surpassed one million units.

The secret to No Brand Burger's popularity lies in its reasonable price relative to taste and quality. Before launching No Brand Burger, Shinsegae Food focused on research and development to enhance consumer satisfaction with taste and quality. About 20 chefs spent three years maximizing the texture of the hamburgers and testing optimal ingredients and cooking methods to bring out umami flavors. Additionally, in 2018, when Shinsegae Food catered for the Pyeongchang Winter Olympics athletes' village, No Brand Burger underwent taste tests with international athletes. Among approximately 400 menu items for the athletes, No Brand Burger was one of the most popular, with some athletes eating more than 10 burgers per meal. This hamburger has now become the representative menu item, the 'NBB Signature Burger.'

Furthermore, Shinsegae Food applied methods to offer the burgers at reasonable prices by leveraging its expertise in food distribution and manufacturing, significantly lowering prices compared to existing brands. No Brand Burger prices range from 1,900 to 5,300 KRW for single items and 3,900 to 6,900 KRW for sets (including fries and drinks). The representative menu, 'NBB Signature,' is priced at 3,500 KRW for a single item, about 1,000 KRW cheaper than similar items from other companies.

Shinsegae Food's competitiveness across various businesses, including dining, catering, food manufacturing, and ingredient distribution, also played a role. Shinsegae Food judged that ordering about 100 ingredients individually for No Brand Burger would make it impossible to maintain competitive prices. Therefore, through collaboration with ingredient managers from each business division, they lowered the prices of basic ingredients by placing joint orders focused on the ingredients used in No Brand Burger. Additionally, hamburger patties are produced directly at the Eumseong factory through their own ingredient factory, and vegetables are pre-processed at the Icheon factory, reducing unnecessary distribution costs.

Regarding the menu composition, while most hamburger companies use different patties depending on the menu, No Brand Burger uses the same patty for about 10 menu items and creates distinctive flavors through sauces and additional ingredients (tomato, cheese, vegetables, etc.), enabling competitive patty pricing.

Marketing efforts such as commercials featuring ambassador Han Hyun-min and a burger song imitation campaign effectively raised No Brand Burger's awareness among young consumers who mainly enjoy hamburgers.

A Shinsegae Food official said, "Since the brand launch in August last year, we have operated stores in various commercial areas such as Hongdae, COEX, Express Bus Terminal, Noryangjin, Daechi, Kyunghee University, Incheon Square One, Haengdamdo Rest Area, Mokdong, Bangbae, Konkuk University Entrance, and Jongno District Office, focusing on enhancing satisfaction with taste and service. As sales of No Brand Burger continue steadily and each new store becomes a hot place generating buzz in its region, we plan to sequentially expand stores and increase customer touchpoints."