Hollys Meets KG Group, Rebounds as a Lifestyle Brand Without 'Coffee'

[Asia Economy Reporter Seungjin Lee] Hollys, acquired by KG Group last November, is undergoing changes.

Hollys Coffee, operated by Hollys F&B, announced on the 15th that it will remove ‘Coffee’ from its logo and brand name and make a fresh start as a ‘lifestyle brand.’

First, Hollys will change its brand identity (BI). The new BI features the English word ‘HOLLYS’ below the existing crown-shaped emblem. The crown symbolizes customers and employees (Hollystars) holding hands. The red color represents passionate enthusiasm to become the best and solid trust that respects each other. Considering the expansion into a lifestyle brand, the word ‘COFFEE’ from the existing logo was removed.

The new slogan is set as ‘Moments of Delight.’ It expresses the intention to focus on people, space, and experiences to deliver diverse moments of joy in everyday life.

Shin Yoo-jung, CEO of Hollys, explained, “Hollys, which started in 1998 as Korea’s first espresso coffee specialty store, has established itself as a lifestyle space that enjoys daily life beyond just a place to drink coffee,” adding, “We have defined six core lifestyle values that can maximize the unique Hollys experience.”

The core values presented by Hollys each start with a letter: ▲Respect for people (Humanism) ▲Open mind ▲Love for customers ▲Brand loyalty ▲Young sensibility ▲Providing special experiences (Special).

Hollys has set a goal to establish itself as a representative lifestyle brand of Korea by leveraging the strength of KG Group. The plan is to reach combined direct franchise sales of 500 billion KRW, 1,000 stores, and 3,000 employees by 2025. As of the end of 2020, Hollys had combined direct franchise sales of about 200 billion KRW, 587 stores, and 1,700 employees.

Five strategies for evolving into a lifestyle brand were also announced: ▲Reestablishing brand identity ▲Expanding Hollys caf?-style food menus and goods reflecting lifestyle ▲Expanding franchise support through Hollys Care ▲Strengthening digital communication via membership, smart order renewal, and SNS ▲Specialized stores and space composition tailored to the MZ generation’s lifestyle.

Since being acquired by KG Group, Hollys is evaluated to have easier stable franchise management and aggressive expansion from a mid- to long-term perspective. In fact, after KG Group acquired KFC, it improved performance by renewing the KFC app and launching ‘Zinger Bell Order’ by integrating IT fintech technologies from affiliates such as KG Inicis, a specialized electronic payment company. Hollys also plans to create a strong ‘Digital Hollys’ with support from IT affiliates like KG Inicis and KG Mobilians.

CEO Shin emphasized, “Like wearing Hollys’ red crown, we want to be closer and resonate with the MZ generation who love themselves and passionately strive to be the best,” adding, “Meeting KG Group has given Hollys new wings, and we will grow Hollys into Korea’s representative K-brand.”