"Deceived by Baek Jong-won's Name"... 'Yeondon Bolkatsu' Store Owners Take to the Streets Under the Scorching Sun

Press Conference of the Store Owners' Association in front of The Born Korea Headquarters on the 18th
"Even Headquarters Employees Can't Make Volcatsu"

Franchise owners of 'Yeondon Bolkatsu,' operated by Theborn Korea led by CEO Baek Jong-won, took to the streets amid scorching heat exceeding 32 degrees Celsius. Yeondon Bolkatsu is a franchise jointly created by Theborn Korea and Yeondon, a pork cutlet restaurant that gained fame through its appearance on SBS variety show 'Baek Jong-won's Alley Restaurant.' The franchisees demanded, "The headquarters recruited franchisees through false and exaggerated advertising but is ignoring the decline in franchisees' sales and profitability, causing the stores to wither. We demand measures to ensure the survival of franchise owners."

The Yeondon Bolkatsu Franchisee Association and the National Franchisee Association held a press conference on the afternoon of the 18th in front of Theborn Korea headquarters in Gangnam-gu, Seoul, to announce "Cases of Damage to Yeondon Bolkatsu Franchisees." The franchisees claimed, "The headquarters promised false and exaggerated sales figures and profit margins to recruit franchisees, causing damage, but has yet to present any countermeasures."

"Deceived by Baek Jong-won's Name"... 'Yeondon Bolkatsu' Store Owners Take to the Streets Under the Scorching Sun

The Yeondon Bolkatsu Franchise Owners Association and the National Franchise Owners Association held a press conference on the afternoon of the 18th in front of The Born Korea headquarters in Gangnam-gu, Seoul, to announce cases of damage suffered by Yeondon Bolkatsu franchisees. / Photo by Im Onyu @ioy

These franchise owners argued that profitability has deteriorated due to a sharp drop in sales and rising costs, and the number of Yeondon Bolkatsu franchise stores is rapidly decreasing. The franchisees added, "According to confirmation with Theborn Korea headquarters, Yeondon Bolkatsu opened a total of 83 new franchise stores until last year, but as of April this year, only 30 stores remain."

The franchise owner of Yeondon Bolkatsu Dangok Station branch said, "The promotional website advertised a daily maximum sales of 3.38 million to 4.68 million KRW, but sales began to plummet rapidly from one month after opening and are now at about 10%," lamenting, "After paying rent, taxes, and employee salaries from sales, there is nothing left."

Sales of Yeondon Bolkatsu franchise advertised by Theborn Korea

He continued, "If our sales were even 50% of the sales promoted by the headquarters, I would think it was my fault alone if only my sales were low. But many franchisees, including myself, operating Yeondon Bolkatsu are struggling with a sharp decline in sales," he added.

The franchisees commonly pointed out the extremely low revisit rate as a problem of Yeondon Bolkatsu. Customers who visited after seeing the names Baek Jong-won and Yeondon were not satisfied with the taste and did not return to the stores. The franchise owner of Yeondon Bolkatsu Gimpo Raveniche branch said, "Even the headquarters manager who trains Bolkatsu could not make proper Bolkatsu, and we started business after only two days of training, so what could we expect?" adding, "With such insufficient training and menu, it is difficult to run the business."

There was also criticism that it took a long time for customer complaints to be reflected by the headquarters. This franchise owner said, "We submitted requests such as making Bolkatsu less salty or reducing the long preparation time, but it took a long time to be reflected, and ultimately disappointed customers did not come back."

The franchisees claimed, "The headquarters maximized its profits by opening many franchise stores in a short period based on sales generated by customers curious about Yeondon featured on broadcasts."

At the press conference, franchise transaction expert Jeong Jong-yeol pointed out that Yeondon Bolkatsu was franchised without sufficient review, relying on its fame.

Jeong said, "For a franchise to succeed, the intangible value of the products provided by the headquarters must be high. However, Yeondon Bolkatsu recruited franchisees and started the franchise business based on Yeondon's fame, which was problematic."

He added, "To succeed as a franchise, a verification system must be in place, but 83 stores opened without such a process. The headquarters should not blame profitability deterioration on COVID-19 or cost increases due to the Russia-Ukraine war but should work together to solve problems to protect the franchisees, who are innocent victims."

These franchise owners plan to file a postal complaint with the Fair Trade Commission as early as the 19th regarding Theborn Korea's false and exaggerated advertising and price fixing.