In the COVID era, Food Service Franchises Supporting Franchisees and Pursuing 'Sustainable Coexistence'

Haemaro Provides Emergency Support Worth 2 Billion KRW to Mom's Touch Franchise Stores
Juk Story Offers Funding Support Alongside Renewal

[Asia Economy Reporter Choi Saeng-hye] As the spread of the novel coronavirus infection (COVID-19) has increased the number of franchise stores struggling with store operations and livelihoods, the food service industry is stepping up to help them. Among these efforts, practical support measures aimed at supporting franchise stores and contributing to local communities, as well as increasing store sales, are emerging as a new win-win model in the COVID era, drawing attention.

According to the related industry on the 12th, a representative case recently noted for coexistence is Haemaro Food Service, which operates the burger and chicken brand Mom's Touch. Reflecting the company's management policy that prioritizes coexistence with franchisees, Haemaro Food Service has launched an emergency support fund totaling 2 billion KRW to help franchisees struggling with the prolonged COVID-19 situation maintain their livelihoods.

The support targets approximately 200 franchise stores whose sales have sharply declined due to special COVID-19 circumstances such as "restrictions on going out and dining out due to multiple confirmed cases" and "postponement of nationwide elementary, middle, and high school openings as well as university semesters," making it difficult to sustain their livelihoods. The support will be provided for about three months from September to November.

This support is meaningful not only in helping the targeted franchise stores but also in sharing the pain with local communities suffering from the COVID-19 crisis. The support is carried out by the headquarters directly purchasing products from the targeted stores and donating them to local community organizations and institutions affected by COVID-19. Mom's Touch has been providing substantial support at the headquarters level to franchise stores nationwide since the early days of the COVID-19 outbreak. In particular, earlier this year, it supported franchise stores in the Daegu and Gyeongbuk regions with discount promotions and product support, and prepared support measures for franchise stores affected by confirmed case routes, earning positive responses from franchisees.

The well-being Korean food franchise Juk Story provides certain funds to existing franchise stores adopting brand renewal. This year, Juk Story renewed its brand by changing the exterior design and introducing a pot porridge recipe. Newly opened franchise stores automatically apply the new exterior design and pot porridge recipe, but existing franchise stores operate on a voluntary choice basis by the store owners.

Among new store owners, there has been positive feedback that the taste of pot porridge and pot rice has improved, the cooking process is easier, and there are no injuries, leading to increased demand for renewal among existing store owners. In particular, existing franchise stores that introduced pot porridge and pot rice equipment showed sales increases compared to the 2019 average. According to a survey conducted by Juk Story targeting existing store owners, most wish to adopt the brand renewal but face financial difficulties. Accordingly, Juk Story decided to support the funds related to brand renewal adoption for existing franchise stores as part of win-win management, providing cash support up to 60% of the costs incurred for exterior design changes and the introduction of pot porridge and pot rice equipment.

The cafe franchise Yogerpresso is applying discount benefits on 364 logistics items necessary for operating franchise stores nationwide until the 21st. Yogerpresso franchise stores across the country can purchase essential logistics for stable store operation over about two weeks with unlimited purchase frequency and discount benefits. In addition, the headquarters plans regular discount promotions every month in collaboration with the delivery app Yogiyo, and conducts events through partnerships with top e-commerce companies such as TMON, 11st, and Gmarket. These various online promotions, fully supported by the headquarters, effectively attract customers to franchise stores and increase sales.

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