Kang Seunghyup, CEO of Shinsegae Food
"Goal to Enter the Top 3 in the Burger Industry by 2030"
Shinsegae Food is launching a new franchise model for No Brand Burger that reduces store opening costs by 40%, aiming to accelerate business expansion. The company plans to speed up the opening of No Brand Burger franchise locations with the goal of entering the top 3 in the burger industry by 2030.
On May 8, Shinsegae Food held a press conference at COEX in Gangnam-gu to announce this new franchise model.
On this day, Shinsegae Food introduced a new "compact store" model, which is approximately 49.6 square meters (15 pyeong) in size. This store can be opened with an investment of around 105 million KRW. In comparison, opening a standard store of 82.5 square meters (25 pyeong) has required 180 million KRW, meaning that a compact store can be launched at about 60% of the cost of a standard store.
The kitchen in the compact store is designed as a dry kitchen, the signage design has been simplified, and only essential operational elements have been retained. To further reduce startup costs, the interior construction manual has been simplified, cutting the construction period from four weeks to three weeks, and the number of finishing materials has been reduced from 22 to 14. The number of seats per pyeong has been increased by 35% compared to existing stores, improving space efficiency.
The decision to reduce store size was also influenced by the increasing trend of delivery and takeout orders. The share of delivery and takeout orders has risen from the mid-50% range last year to the high-60% range this year.
Shinsegae Food plans to attract more prospective franchisees by lowering startup costs, thereby creating a virtuous cycle of growth that will expand the No Brand business. The company also intends to reduce franchise and advertising fees to further ease the burden on potential franchisees.
Kang Seunghyup, CEO of Shinsegae Food, said, "Reducing the startup burden for franchisees will be a key competitive advantage for the growth of the No Brand Burger business," adding, "Through the new franchise model, our goal is to enter the top three in the burger industry by 2030."
In addition, No Brand Burger is launching a new menu item, the 'NBB Amazing Double.' The patty weight has been increased by 30% compared to similar burgers, while the price is set at 4,500 KRW, which is 30% lower than the industry average. Existing menu items have also been improved in terms of patty, bun, and sauce to further enhance taste and flavor.
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