Half of Franchise Owners in Their 30s... The Franchise Startup Market Gets Younger

School Food Delivery Jeonnam Naju Innovation Branch. Photo by School Food

[Asia Economy Reporter Moon Hyewon] The number of young franchise owners is increasing in the dining-out franchise industry. According to the 2020 Startup Business Trends announced by the Ministry of SMEs and Startups, the startup rate among young people under the age of 39 increased by about 11.4% compared to 2019.

◆ 50% of Franchise Startups in Their 30s = According to the industry on the 23rd, as of the end of last month, the franchise owners of the snack franchise School Food had the highest average share by age group in their 30s, accounting for 50% of all owners. The share of owners in their 30s was around 30% during the same period last year, showing a sharp increase in one year.

Since the end of last year, School Food has consecutively introduced low-capital startup models. The ‘Delivery Slim Type,’ about 12 pyeong (approx. 40 square meters), can be started with an investment cost of about 60% of the initial startup cost of an existing 20-pyeong delivery store. It mainly sells about 30 popular menu items sold by School Food, focusing on securing sales and improving operational efficiency. The ultra-small ‘Delivery Mini Type’ store, about 9 pyeong (approx. 30 square meters), can be started with low capital of around 55 million KRW. It can be operated by one person, allowing even first-time workers with no experience in the dining industry to run it without burden.

◆ 300 Delivery-Only Stores in One Year = Genesis BBQ’s delivery and takeout specialized store BSK (BBQ Smart Kitchen) has surpassed 300 stores within one year of its launch, actively responding to the trend of low-capital startups. BSK provides delivery and takeout services only, with a low capital investment of about 50 million KRW. According to BBQ, more than half of the franchise owners operating BSK are in their 20s and 30s.

Go Pizza offers a small-scale store model managed by one to a maximum of three people depending on operating hours. Currently, about 60% of the franchise owners of all stores are in their 30s. Mom’s Touch is attracting 20s and 30s startup owners with a store opening strategy that encourages opening 20-pyeong medium-small sized stores in alleyway commercial areas rather than busy main roads, and on the second floor rather than the first floor.

An industry official said, "Since COVID-19, franchise trends have been one-person, small-scale, and contactless," adding, "Avoiding the employment freeze, people in their 20s and 30s are actively jumping in, and competition to expand delivery-only stores that can be started with low capital is intensifying."

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