BGF Retail Establishes Hawaiian Subsidiary
Signs Franchise Agreement with New Local Entity WKF
Differentiation through K-food and Localized Menus
CU is set to become the first in the industry to enter the United States, the birthplace of convenience stores.
On May 27, BGF Retail, the operator of CU, announced that it had established a Hawaiian subsidiary and signed a master franchise contract (MFC) with CU Hawaii LLC, a newly established convenience store-specialized subsidiary of local company WKF Inc. (WKF). The MFC grants the local company the rights to use the brand, open stores, and operate the business, in exchange for royalties. Starting with this MFC, the two companies plan to open the first CU store in Hawaii in October this year and expand into various commercial districts.
Min Seungbae, CEO of BGF Retail (fourth from the left in the front row), and Robert Kurisu, CEO of CU Hawaii LLC (fifth from the left in the front row), are posing for a commemorative photo with representatives from both companies after signing the master franchise agreement for CU's entry into Hawaii. Provided by BGF Retail
With this move into Hawaii, BGF Retail is the first to take on the challenge of entering the U.S. market, the home of convenience stores. The world's first convenience store was established in Dallas, Texas, in 1927.
The partner companies owned by WKF, BGF Retail’s Hawaiian partner, are engaged in a variety of businesses locally, including real estate development and investment, as well as publishing, media, and distribution industries.
Hawaii is a leading U.S. resort destination, attracting 10 million tourists annually with its year-round mild and sunny weather. The average daily spending per tourist in Hawaii is around 320,000 KRW, with dining expenses accounting for about 40%?the largest proportion. The company expects that reasonably priced convenience store products will become an attractive choice not only for tourists but also for local residents. It is also positive that Korean culture continues to gain popularity, with a Korean food boom among American teenagers and people in their 20s and 30s.
CU plans to bring together the capabilities it has built as a K-convenience store over the past 30 years, both domestically and internationally, and showcase them in Hawaii. The company is designing a store model that incorporates the latest global retail trends and localizes elements for the Hawaiian market. Retail technologies such as self-checkout zones will also be introduced.
Additionally, CU is developing a wide range of K-food options, including ready-to-eat meals and freshly prepared items, as well as localized menu offerings and a variety of distinctive, differentiated products. The company also plans to launch products in collaboration with renowned local chefs, featuring signature Hawaiian dishes such as poke and loco moco. Popular Korean foods in the U.S., such as gimbap, and instant ramen cooking stations?a must-try for Korean tourists?will also be introduced.
Min Seungbae, CEO of BGF Retail, stated, "By signing the Hawaii MFC, we are laying the foundation for Korean convenience stores to become a global standard as we enter the world's largest retail market, the United States. Based on CU’s unique know-how accumulated over the past 30 years at home and abroad, we will showcase the strength of K-convenience stores on the global stage."
Robert Kurisu, CEO of CU Hawaii LLC, said, "Hawaii has very high demand for new retail models due to high prices and limited options. We want to quickly introduce CU, a new and attractive K-convenience store, to Hawaii."
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