Norang Tongdak Plans to Expand Delivery-Only Stores Further This Year

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[Asia Economy Reporter Moon Hyewon] Norang Tongdak announced on the 17th that it will actively expand its delivery-type franchise stores.

According to Norang Tongdak, delivery-type stores have the advantage of being able to start a business even in areas with low foot traffic. Compared to dine-in stores, they have lower rent burdens and reduced labor costs, which helps lower fixed expenses.

In fact, the rent for Norang Tongdak’s delivery-type store A located in Seoul is about 1 million KRW per month, which is approximately 1.1 million KRW less than the dine-in store in the same area (about 2.1 million KRW per month). The average monthly sales of delivery-type stores are 43 million KRW, close to the dine-in stores’ average monthly sales of 53 million KRW. Considering the fixed cost savings of delivery-type stores, Norang Tongdak explains that they can actually achieve higher profits.

Norang Tongdak has various franchise management systems through customized consulting for each store type. For delivery-type stores, they apply a field-oriented management system that provides practical support to franchises, including service development necessary for delivery, strategies to increase franchise sales, and effective operation of delivery platforms.

Additionally, delivery-type franchises select their business areas based on population units (such as neighborhoods or towns) with about 20,000 residents, after confirming delivery feasibility within 30 minutes of order by considering traffic conditions around candidate store locations from the contract stage.

A Norang Tongdak official stated, “Delivery-type stores have lower fixed costs after opening, leading to many inquiries from those planning to start a business. From this year, we plan to actively expand delivery-type stores that can achieve high sales even in areas with low foot traffic, alongside dine-in stores that clearly express Norang Tongdak’s brand identity.”

Meanwhile, Norang Tongdak currently operates over 570 franchise stores nationwide. From 2017 to last year, it has maintained a low closure rate in the 2% range for five consecutive years.

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