It has been verified that certain franchise brands owned by TheBorn Korea, under the leadership of Baek Jong Won, are now in the process of shutting down.
On April 22, reports from the food service industry revealed that three franchise brands managed by TheBorn Korea—namely Gosok Udon, Quickban, and Baekcheolpan 0410—currently have no operational locations across the country.
With Nakwon Gopchang, only one store that is directly managed remains open. Despite being listed in franchise disclosure documents, there has been no advancement in opening new franchised stores. Brands that have no active locations are essentially regarded as having exited business operations.
Moreover, certain brands such as Go to Wok and Seongseong Sikdang are barely in existence, with less than one store in the country and no directly managed outlets, raising concerns about the brands' viability.
Directly managed stores form the foundation for franchise operations, crucial for maintaining brand consistency, offering training, and testing new products. However, TheBorn Korea seems to be facing challenges in sustaining even its headquarters-level activities. Recent legal issues have exacerbated the situation, with indications of franchisees pulling out even from the company's major brands.
Though TheBorn Korea has not made an official announcement regarding the complete closure of these brands, they are essentially on hold.
While TheBorn Korea possesses a range of 25 brands, over half (16 brands last year) have experienced a drop in the number of stores. Besides key brands like Paik’s Coffee, Hong Kong Banjeom, and Yeokjeon Udon, overall growth is slowing down.
A source within the industry remarked, “There have been ongoing concerns about TheBorn Korea handling an excessive number of brands, but it managed to survive due to CEO Baek Jong Won’s reputation and trust. However, recent issues related to owners have led to a simultaneous decline in brand loyalty and retention of franchisees.”
The source further expressed, “Trust lies at the heart of the franchise industry, and given the current situation, it appears challenging for underperforming brands to revive their standing.”