CU Announces Largest Ever Win-Win Plan to Boost Franchisee Profits... "Record Scale"

On the 15th, CU announced the largest-ever '2022 Win-Win Plan' to enhance the competitiveness and profitability of its franchise stores.

[Asia Economy Reporter Lim Chunhan] CU announced on the 15th its largest-ever ‘2022 Win-Win Plan’ to enhance the competitiveness and profitability of its franchise stores.

This win-win plan focuses on ▲expanding product order support (increasing waste support funds) ▲introducing new product introduction subsidies ▲implementing operational incentives. It includes comprehensive support measures that strengthen everything from sales growth drivers to franchisee welfare benefits.

Regarding product order support, the scope of waste support items, which had been limited to convenience foods and dairy products, was significantly expanded to 41 items including side dishes, fruits and vegetables, desserts, and refrigerated snacks, with subsidies available up to 400,000 KRW per month. By expanding the waste support items, franchise stores can secure inventory more comfortably and establish a virtuous cycle where active product management leads to increased sales.

A new product introduction subsidy was also established. CU provides subsidies up to 150,000 KRW per month based on the store’s new product introduction rate each month according to grade. As new products have recently become a strong sales growth driver for convenience stores, this encourages active introduction of new products to secure CU’s unique product competitiveness.

Incentives can also be received based on operational capabilities directly linked to store profitability. CU offers incentives up to 1,000,000 KRW twice a year to 40% of stores based on evaluations of cleanliness, service, and product management. Additionally, specific measures to assist store operations and allow franchisees to focus on increasing sales include ▲franchise store fire insurance subscription ▲free replacement of functional parts for refrigeration equipment ▲integration and reduction of internet line fees ▲support for store signage and lighting replacement.

Starting early next year, CU plans to provide a ‘Profit Generation Win-Win Consulting System’ through franchise-exclusive PCs (OPC) to help franchisees better understand and actively utilize the win-win support details. Using this system, franchisees can directly check and analyze their store’s support details and regularly monitor store status to develop operational plans that maximize profits.

BGF Retail President Lee Geonjun said, “The 2022 Win-Win Plan focuses on creating a virtuous cycle that strengthens partnerships with franchisees and improves store profitability for solid growth despite an unstable business environment. Going forward, as the industry leader, we will actively practice sustainable win-win management through CU’s unique super-gap competitiveness.”

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