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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, South Korea – May 24, 2025 – A recent analysis reveals that franchise stores affiliated with Theborn Korea, led by renowned restaurateur Baek Jong-won, have experienced a significant drop in sales amid ongoing controversies involving the CEO.
According to Rep. Cha Kyu-geun of the National Assembly's Strategy and Finance Committee, credit card transaction data from four major issuers (Samsung, Hyundai, Shinhan, KB Kookmin) shows that average daily sales at Theborn Korea franchises dropped by nearly 20% between February and April 2025.
The analysis attributes the downturn to mounting consumer concerns related to several allegations surrounding Baek Jong-won and Theborn Korea. These include misleading promotional discounts, use of pesticide sprayers in food preparation, and unauthorized cooking equipment.
Among affected brands:
Hong Kong Banjum 0410 saw its average daily sales fall from ₩74.5 million to ₩60.7 million, a decline of 18.5%.
Saemaeul Sikdang dropped from ₩99.4 million to ₩81.9 million, a decrease of 17.6%.
Paik’s Coffee (Paikdabang) posted a modest increase in daily sales from ₩392.6 million to ₩446.9 million (13.8%), though the growth sharply decelerated from 12% in March to just 2% in April.
Rep. Cha noted that the growth in Paik’s Coffee may reflect an increase in store openings rather than organic revenue growth, suggesting that “the recent negative press surrounding CEO Baek has had a tangible impact on consumer behavior.”
Notably, a weekend sales comparison between mid-March (when the pesticide sprayer controversy surfaced) and early April revealed stark declines:
Paik’s Coffee: –28.1%
Hong Kong Banjum: –26%
Saemaeul Sikdang: –45.3%
Rep. Cha urged Theborn Korea to implement compensation measures for franchisees and take steps to prevent future reputational damage:
“The ultimate burden of ‘owner risk’ falls on the franchise owners. The company must take responsibility and act decisively to protect its partners.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
