E-Land Eats CEO Sends Emergency Management Email to All Employees: "Brand Withdrawal and Unpaid Leave Implemented"

Emergency Management Request Email Sent to All Employees of the Food Service Division
COVID-19 Inevitably Deals a Severe Blow to the Food Service Industry and the Entire Industrial Sector
Facing 'Survival'... Urging Structural Improvement and Encouraging Overcoming Together

[Asia Economy Reporter Lee Seon-ae] Kim Wansik, CEO of E-Land Eats, announced on the 7th that the company is entering emergency management due to the prolonged COVID-19 pandemic and will reorganize its business strategy.

That morning, CEO Kim sent an email to all employees of the food service division urging them to focus on emergency management.

CEO Kim said, "Despite ongoing external difficulties, I sincerely thank everyone for their silent efforts on the ground," adding, "Due to the spread of COVID-19, difficult situations both domestically and internationally have continued, and the division has experienced prolonged performance declines, so we are entering emergency management while simultaneously reorganizing our business strategy."

E-Land Eats has seen a continued -40% sales decline compared to the previous year, resulting in an increased deficit. In fact, this performance deterioration is the first management difficulty E-Land Eats has faced. During the first half of the year, the division proactively reduced new investments, closed underperforming stores, minimized unnecessary expenses, and intensified efforts to increase productivity at each store through reduced operating hours and workforce optimization. This created a spark of recovery in May, but with the recent resurgence of COVID-19, the company now faces a survival crisis requiring additional self-help measures.

Regarding this, CEO Kim expressed regret, saying, "Despite global negative issues, we failed to create a business portfolio capable of growth during crises, and we should have quickly found and prepared breakthroughs and alternatives considering the prolonged nature of this crisis, but we did not."

Judging that the current situation will inevitably be prolonged, CEO Kim announced plans to actively pursue ▲ brand strategy reorganization ▲ cost control ▲ restraint on new investments.

First, from the perspective of 'selection and concentration,' the brand strategy will be reorganized. About 30 stores were closed by the first half of the year, and further measures are under consideration. The plan is to boldly withdraw brands that are not chosen by customers while reorganizing some existing brand strategies. CEO Kim’s goal is

to return to basics, focus more on customers, and restructure around products and services to create a sound business structure.

Next is improving the company’s structure for survival through cost control, excluding areas directly related to customer satisfaction such as hygiene, safety, and quality. New investments will only proceed if essential within the division’s strategy.

CEO Kim said, "Since March, proactively, the CEO has reduced salary including position allowances by 50%, executives by 30%, and team leaders have returned their position allowances to overcome the crisis, but it was insufficient," and also announced plans for unpaid leave. He added, "I feel the limits of overcoming the division’s difficulties with only a small number of leaders’ efforts, and with a heavy heart, I ask for the division’s participation," saying, "To ensure the survival of the division and our workplace, we will temporarily implement voluntary unpaid leave of at least one day per week starting with headquarters employees until September to overcome these difficulties."

Finally, CEO Kim said, "The current situation is an unprecedented great trial for our business, which directly serves customers," and urged, "To protect E-Land Eats’ business and our workplace, let us all unite with one heart, support and encourage each other, and overcome this situation."