NMFE Co., Ltd., which operates 'Izakaya Namu,' announced that it continues its growth by emphasizing a directly managed operation system to strengthen its internal capabilities.
NMFE Co., Ltd. opened the first 'Izakaya Namu' store near Seolleung Station in Gangnam-gu, Seoul in 2013, and in just over 10 years, the company has grown to a mid-sized enterprise with annual sales exceeding 50 billion KRW. Currently, it operates 15 directly managed 'Izakaya Namu' stores in Seoul alone, with approximately 350 employees (including non-regular staff).
Like many food service companies, NMFE faced difficulties during the COVID-19 pandemic, with sales dropping by about half. However, the company turned the crisis into an opportunity by focusing on promoting the key features of 'Izakaya Namu' during the pandemic: large-scale seating of 500 seats and private room formats. They also expanded their business by developing high-quality menus and providing top-notch service.
Currently, NMFE Co., Ltd. is expanding its business into various fields beyond F&B, including bowling alleys, marketing, leasing, and financial investment.
When a food service store succeeds, most managers dream of franchising because it allows rapid expansion of the company's scale. Although some expressed interest in operating franchise stores of 'Izakaya Namu,' all 15 stores are currently operated directly by the company. Since its founding in 2013, NMFE has steadily expanded by opening 3 to 4 directly managed stores annually and plans to increase the number of directly managed stores to 25 by 2026.
The reason for operating all stores as directly managed is simple: to consistently provide the best quality to customers.
Kim Chung-ki, CEO of NMFE Co., Ltd., stated, “Direct management is the most representative premium strategy of 'Izakaya Namu.'” He explained that the company standardizes menus and service manuals to maintain the highest quality of food and service, regularly training and managing employees at the 15 directly managed stores. The goal and standard of Izakaya Namu is to provide quality and service that surpasses large franchise companies.
Moreover, by operating directly managed stores, the company has been able to invest appropriately to enhance its premium image. The signature features of 'Izakaya Namu' include private rooms comprising over 70% of the seating, large-scale stores with more than 500 seats offering spacious and comfortable experiences, and impressive high-end interior design. Through bold investments in space?something franchise owners would find difficult?the brand’s premium image has been elevated.
Leveraging its management know-how, NMFE plans to open a 200-seat premium aged meat restaurant called 'Namu Garden' near the KBS annex in Yeouido in October. Additionally, it plans to open more than 10 premium and light version stores of 'Izakaya Namu' each.
The light version is a casual adaptation of the premium 'Izakaya Namu,' designed to allow more people to enjoy it without burden by adjusting size, price, and service. The light version will also be operated as directly managed stores, enabling more responsible management and the ability to implement bold plans to increase customer satisfaction.
In the long term, the company plans to diversify its business further by entering large sports center construction, lodging, and silver industry sectors such as senior towns. It also plans to purchase a headquarters building suitable for the company size by 2026.
Meanwhile, 'Izakaya Namu' is holding a large-scale summer vacation event until August 31, offering prizes worth 100 million KRW to 1,000 customers for the first time since its founding. Starting with this summer event, the company aims to hold seasonal events to provide enjoyment and benefits to customers, positioning itself as a leading food service company in the industry.
An NMFE representative said, “We prepared a special event to offer joy that blows away the heat and stress at once and to give meaningful memories to customers visiting Izakaya Namu. The event includes prizes such as a Chanel handbag worth 18 million KRW (1 winner), Chanel clutch bags worth 2.5 million KRW (3 winners), 4-person golf round tickets worth 1.5 million KRW (6 winners), and 100,000 KRW meal vouchers, distributing prizes worth 100 million KRW to 1,000 people. All participants will receive two refreshing draft beers without any losing tickets.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
