 |
Dong-seon Kim, Executive Vice President of Hanwha Galleria and Head of Future Strategy |
[Alpha Biz= Kim Jisun] Hanwha Galleria has put the Korean operations of American burger chain Five Guys up for sale just two years after its domestic debut. On July 17, industry sources revealed that FG Korea, a Hanwha Galleria subsidiary that owns the local franchise rights, appointed Samil PwC as lead advisor and distributed teaser letters to private equity firms gauging acquisition interest.
Brought into Korea by Dong-seon Kim, Executive Vice President of Hanwha Galleria and son of Hanwha Group Chairman Seung-youn Kim, Five Guys opened its first store in June 2023. Although the brand expanded to seven locations and even announced plans to enter Japan, profitability has lagged expectations, prompting a strategic pivot. Hanwha Galleria stated, “We are exploring various options with the global headquarters to enhance the brand’s competitiveness.”
The potential sale has sparked speculation about Dong-seon Kim’s ongoing business restructuring. While leading Hanwha’s retail, hotel, and resort operations, Kim has faced multiple challenges, including underperforming core businesses and the quick turnaround of new ventures.
Hanwha Galleria and Hanwha Hotels & Resorts have reported weak financials. In Q1, Galleria’s operating profit dropped by 75.6%, while Hanwha Hotels & Resorts posted deeper losses. Flagship hotel The Plaza near Seoul City Hall was even rumored to be shutting down, although the company denied the claim.
Additionally, new food-tech concepts spearheaded by Kim have struggled: the robot-operated udon shop Yudong, launched in May in Jongno, closed within a month, while robot-cooked pasta restaurant Pasta X shut down after just over a year.
The sale of Five Guys Korea underscores the group’s reassessment of its consumer-facing portfolio amid ongoing performance issues and a volatile food service market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
