"Even with a 90% Drop in Sales, They Headed to Daegu"…The True Value of a Social Enterprise

[Asia Economy Reporter Park So-yeon] The social enterprise 'Jeonju Bibimbap Bread' has stepped up to help the Daegu and Gyeongbuk regions, which are suffering severely from the novel coronavirus infection (COVID-19), despite the pain of decreased sales due to a decline in local visitors. SK Innovation, which nurtures Jeonju Bibimbap Bread, joined in this effort.

Jeonju Bibimbap Bread, together with SK Innovation, donated bakery products worth 20 million KRW to the Korean Red Cross to support medical staff in Daegu and Gyeongbuk who are dedicating themselves amid COVID-19. The donated bakery products will be distributed to medical personnel and volunteers in the Daegu and Gyeongbuk areas.

◇ Companies looking to help even more difficult places despite hardships = In particular, Jeonju Bibimbap Bread has attracted attention by deciding to donate amid a severe business situation where sales have dropped by 90% due to the impact of COVID-19. Visitors to Jeonju Hanok Village, which used to attract many tourists nationwide, have stopped coming, causing serious pain such as temporarily closing the Hanok Village sales outlets that generated significant sales.

Jeonju Bibimbap Bread decided to reduce consumer burden by selling all products at a 10% to 30% discount, sharing the pain in a situation where everyone is struggling due to the COVID-19 virus.

Jeonju Bibimbap Bread made this donation to fulfill the original role of a social enterprise that solves social pain while engaging in economic activities. Especially, seeing the medical staff and volunteers in Daegu and Gyeongbuk working day and night without even having proper meals while caring for patients, they hoped to provide a small support.

◇ Growing by sharing, from 300 million KRW to 2 billion KRW in sales = Jeonju Bibimbap Bread is highly regarded as a representative social enterprise of Jeonju by employing vulnerable groups such as the elderly, disabled, and multicultural families, and selling various breads inspired by Jeonju Bibimbap.

In particular, it pursues social value not only by creating jobs but also by using eco-friendly ingredients in the environmental field. SK Innovation spares no support by providing mentoring to Jeonju Bibimbap Bread with its capabilities in accounting, finance, production management, marketing, and public relations.

The social enterprise 'Cheonnyeon Nuri,' well known under the Jeonju Bibimbap Bread brand, was established in 2012 with the goal of creating jobs for vulnerable groups and revitalizing the local economy. Starting with four vulnerable employees such as elderly and disabled people in Jeonju, this social enterprise faced difficulties stabilizing the business initially due to lack of funds and operational know-how.

SK Innovation supported the stable growth of Jeonju Bibimbap Bread. At the early stage of Jeonju Bibimbap Bread’s establishment, SK Innovation provided 150 million KRW in startup funds and later offered pro bono support from its members across all business areas including accounting, finance, production management, marketing, and public relations. SK Innovation’s affiliate SK Networks Walkerhill R&D Center assisted with menu development, hygiene management, and quality and cost improvement processes.

Thereafter, Jeonju Bibimbap Bread began to grow rapidly in 2016 by developing ‘Jeonju Bibimbap Bread,’ inspired by Jeonju’s local specialty, Bibimbap. Cheonnyeon Nuri opened a store in Jeonju Hanok Village in 2017, followed by entering highway rest areas including Yesan Rest Area on the Honam Expressway in 2018. In April last year, they opened a store at KTX Jeonju Station, securing sales bases at all gateways to Jeonju.

As the business grew, employment of vulnerable groups increased more than eightfold compared to the early days. As of December last year, 34 vulnerable employees such as elderly and disabled people in Jeonju are working at Jeonju Bibimbap Bread. Sales of Jeonju Bibimbap Bread increased from about 300 million KRW in 2016 to about 2 billion KRW last year.

However, Jeonju Bibimbap Bread is also going through a difficult time recently due to the impact of the COVID-19 virus. Sales have dropped by about 90%. In particular, as visitors to Jeonju Hanok Village, which attracted many tourists, stopped coming, the Hanok Village sales outlets with high sales temporarily closed, causing serious pain.

Despite the worsening business environment, Cheonnyeon Nuri decided to fulfill its mission as a social enterprise leading public interest and solving social problems. To help medical staff in Daegu and Gyeongbuk suffering from COVID-19, they decided to supply bakery products worth 20 million KRW to the Korean Red Cross together with SK Innovation.

Jeonju Bibimbap Bread CEO Jang Yoon-young said, “Jeonju Bibimbap Bread started with the greatest purpose of solving social concerns and coexisting with society,” adding, “Although Jeonju Bibimbap Bread is facing its most difficult moment since its founding, we made bread diligently with grandmothers, hoping that medical staff and volunteers who are working tirelessly for the safety of residents in Daegu and Gyeongbuk, who are suffering even more, will play a great role.”

This content was produced with the assistance of AI translation services.