Korean franchise companies are embarking on an aggressive push to capitalize on the Korean food craze in the U.S., the home of franchising.
The Korea Franchise Association USA (KFAUSA) and the Korean American Chamber of Commerce of Orange County will co-host the “6th K-Franchise Investment Seminar in the United States” from 2 p.m. to 6 p.m. on August 22 at CGV at The Source OC in Buena Park.
“Korean franchises are expanding into the world thanks to the increasing popularity of Korean food, which has intensified since the pandemic due to exposure to Korean cultural products such as dramas,” said Howook Lee, director of the KFAUSA. “Through this event, we look forward to creating practical business opportunities for individuals and organizations interested in operating and investing in Korean franchise brands.”
According to Neozips, which is in charge of promoting and marketing the event, the K-Franchise Seminar switched to an in-person format this year due to the massive interest among Korean Americans last year, despite the event being held online for the past five years due to the pandemic. More than 180 people have already registered for the 300-person capacity event, showing high interest in Korean culture and franchising.
“While only about 50% of individual businesses survive after five years of opening, over 85% of franchises do,” said Eric Eo, CEO of Neozips. “K-franchises have strengths in brand power, effective marketing, and streamlined distribution and logistics,” he added. “With a well-established brand, business owners have a better chance of success and access to shared know-how on everything from logistics to marketing.”
This year, nine franchisees, including Tous Les Jours, Vons Chicken, Chodang Tofu, Honeymee, Jaws Topokki, Pixiu Malahongtang, Inssaeng Maekju, Salady, and Heuk Hwa Dang, will participate in the event, providing an opportunity to meet with representatives from each company.
“The participating franchisers were selected by the Korea Franchise Association and the Korea SMEs and Startups Agency (KOSME),” said Eo. “They are brands that have successfully established themselves in Korea and are supporting their overseas expansion, and some are already operating successfully in the United States.”
Of the nine companies, eight are Korean franchises, except for Honeymee, a local brand in the U.S. Inssaeng Maekju is currently preparing to open its first store in Buena Park at The Source OC this year, and Salady is soon expanding into the U.S. market. The other six are already actively operating franchise branches across the country.
Among them, Tous Les Jours is the most aggressively expanding, with 1,321 stores in Korea in 2023. Since its U.S. launch in 2004, it has expanded to seven countries, including Indonesia, Vietnam, Mongolia, and Cambodia, with more than 460 store branches. With over 100 stores in 26 states in the U.S., Tous Les Jours aims to have more than 1,000 stores in North America by 2030.
Vons Chicken, which has over 100 stores in South Korea, operates a total of 45 stores across the U.S. and expects to reach 200 stores within five years.
At the event, Neozips, Allmerits Financial, Trust1 Sales, Bank of Hope, BankCard Services, and other sponsors will provide information on franchise operations, including commercial area analysis, franchisee recruitment and marketing strategies, equipment purchasing methods, SBA loans, and POS systems, and offer individual counseling.
Participants can register for the event by visiting neozips.com or scanning a QR code. For more information, call (949)557-7744.
BY EUNYOUNG LEE, HOONSIK WOO [lee.eunyoung6@koreadaily.com]
