'Hamburger and Donut Met'... 'Lotte Man' Cha Woo-cheol's Body Improvement Worked

Solid Management After 'Lotte Man' CEO Cha Woo-cheol's Appointment
Boldly Streamlining Low-Profit Businesses and Stores
Estimated Operating Profit of 20 Billion KRW Last Year

The structural reform of Lotte GRS, led by 'authentic Lotte man' CEO Cha Woo-cheol, is showing results. By boldly reorganizing low-profit businesses and stores and strengthening internal stability, the company is estimated to have achieved operating profits in the 20 billion KRW range last year, following a return to profitability in 2022. Lotte GRS plans to continue improving management efficiency this year while introducing new growth engines for the first time in 24 years.

Two Brands Under One Roof... Enhancing Efficiency with Lotte GRS' Complex Stores

According to Lotte GRS on the 6th, a 330㎡ (approximately 100 pyeong) complex store combining Lotteria and Krispy Kreme Doughnuts opened near Guro Digital Station on Subway Line 2 the day before. This is the first store to house both burgers and doughnuts simultaneously, fully renovating the existing Lotteria Guro Digital Station branch. A Lotte GRS official explained, "This is to transform the existing Lotteria into a complex dining store to strengthen store competitiveness and improve operational efficiency."

The complex store is part of the structural reform efforts that Lotte GRS has been attempting since CEO Cha took office in November 2020. By operating two brands simultaneously in a large 100-pyeong store, the company aims to reduce fixed costs while increasing sales per store. Lotte GRS plans to open additional stores combining two or more brands in consideration of commercial districts and store sizes. Currently, Lotte GRS operates Lotteria, Angel-in-us, Krispy Kreme Doughnuts, and Villa de Charlotte.

'Relief Pitcher' CEO Cha, Bold Choices and Focus... Recovered Sales of 900 Billion KRW Last Year

Lotte GRS suffered losses in 2020-2021 due to intensified competition in the food service industry and the impact of COVID-19. In response, Lotte Group Chairman Shin Dong-bin called CEO Cha as a relief pitcher. As an authentic Lotte man, CEO Cha worked in Lotte Confectionery's IT and purchasing teams since 1992, served in the Lotte Policy Headquarters Improvement Office in 2004, and led the Lotte Holdings Management Improvement Team 1 in 2017.

After CEO Cha's appointment, Lotte GRS quickly reorganized low-profit businesses and stores. In 2021, it sold the family restaurant brand TGIF, and for Lotteria, rather than expanding its footprint, it boldly closed inefficient stores to increase sales and profits of both directly operated and franchised stores. Angel-in-us undertook rebranding by opening bakery-specialized stores.

As a result, Lotte GRS returned to profitability in 2022 and is believed to have recorded sales in the 900 billion KRW range last year for the first time since 2017. Cumulative sales through the third quarter reached 695.6 billion KRW, a more than 20% increase compared to 578.7 billion KRW in the same period last year. Operating profit is expected to be in the 20 billion KRW range. Cumulative operating profit through the third quarter was 17.2 billion KRW, a significant increase from 300 million KRW the previous year.

Under CEO Cha's leadership, Lotte GRS will continue its strategy of selection and concentration this year. Already, the 18-year-old large Lotteria Sinchon Rotary Station branch was closed on January 18. At the same time, buoyed by improved performance, the company will attempt a new business for the first time in 24 years since Angel-in-us. After the Lunar New Year holidays in February, it plans to open 'Chocolat Palette,' a chocolate specialty cafe, in Songridan-gil, Songpa-gu, Seoul. This move aims to target the MZ generation in line with the expanding domestic dessert market.

Meanwhile, Lotte GRS, headquartered in Doksan-dong, Geumcheon-gu, Seoul, will relocate its office to Samjeon-dong, Songpa-gu as early as March. This is three years after moving from Galwol-dong, Yongsan-gu. The new location is close to Jamsil Lotte World, Lotte World Mall, and Songridan-gil, making it easier to grasp consumer trend movements in the food service industry and enhance competitiveness.

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