Didim E&F, December Sales Increase by 34%... "Expecting Performance Turnaround"

[Asia Economy Reporter Jang Hyowon] Didim E&F, a KOSDAQ-listed company operating famous dining brands such as Mapo Galmaegi, Baekjewon, and Yeonan Sikdang, announced on the 5th that a turnaround is expected due to improved performance last year.

In December last year, Didim E&F's directly operated store sales increased by 34% compared to the previous year, and the average monthly sales grew about 10% compared to the pre-pandemic average sales. The company stated, "This is the result of closing deficit stores during the pandemic period and the company's cost improvement efforts."

Didim E&F expressed its ambition to make this year the first year of expanding its franchise business. The company achieved KRW 125 billion in sales and KRW 3.5 billion in operating profit in 2019 through the successful franchise business of Yeonan Sikdang.

In the domestic market, to defend against store closures and increase sales, the company plans to expand complex stores in the form of ‘Yeonan Sikdang + Gorae Gamjatang’. The launch of new brands by existing brands will focus on expanding franchises centered on ‘100nyeonga Gonghwachun’, which opened last July.

‘100nyeonga Gonghwachun’ is a renewed brand of ‘Gonghwachun’, Korea’s first jajangmyeon brand with a 100-year tradition, redesigned to reduce labor costs and enable easy startup. At the IFS Franchise Startup Expo held last October, it received high attention, with more than 50 brand review letters of intent written in just three days.

Last year, there were many restrictions on the dining franchise business due to social distancing, but this year, based on significantly improved business conditions, the company plans to actively promote franchise business together with prospective entrepreneurs.

Additionally, through ‘MAGAL BBQ’, the overseas brand of the Korean food brand Mapo Galmaegi, the company plans to expand its overseas franchise business. ‘MAGAL BBQ’ operates 32 franchises applying a localization system mainly in Southeast Asian countries such as Indonesia and Malaysia. In December, it was recognized for these achievements and received the ‘2022 Hallyu Culture Award’ in the ‘K-Food category’ hosted by the Hallyu Culture Awards Organizing Committee.

Didim E&F recently announced its entry into new content businesses such as entertainment through a company name change. The company aims to create synergy between the existing dining business and the new content business. To this end, it recently recruited former National Assembly member Park Chang-sik, a producer who directed the drama ‘Sandglass’, as an advisor for the media business division.