Shinsegae Food's No Brand Burger "Compact Stores" Spark Interest as Cost-Effective Startup Model

Store view of Shinsegae Food No Brand Burger Konkuk University Branch. Provided by Shinsegae Food.

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With high inflation and an economic downturn fueling interest in small-scale business startups, Shinsegae Food’s “No Brand Burger” compact stores are drawing attention among aspiring entrepreneurs. These compact stores are specialized small-format locations that can be opened at a much lower cost compared to traditional models.

According to Shinsegae Food on March 18, since its launch in May last year, the No Brand Burger compact model has accounted for over 70% of all new store openings, rapidly expanding its presence. This trend reflects market demand for a model that improves both startup costs and operational efficiency.

The No Brand Burger compact store is a small-format specialty location that can be launched with an initial investment in the low 100 million won range-about 60% of the cost required for the standard model. While the standard model (82.5㎡/25 pyeong) required an initial investment of approximately 180 million won to open, the compact model (49.6㎡/15 pyeong) lowers the entry barrier significantly by requiring only an investment in the low 100 million won range.

Although the store area is smaller, Shinsegae Food has optimized the cooking workflow and increased the number of seats per pyeong by about 35%, maximizing space utilization and enabling efficient operation even in compact locations. In particular, by simplifying the interior design and finishing materials and streamlining the construction manual, the model has been regarded as a “cost-effective startup model” that reduces unnecessary expenses and construction time. The option to design the kitchen as a dry kitchen is also considered a key point of interest for aspiring business owners.

This strategy by Shinsegae Food is translating into real startup demand. Since the launch of the No Brand Burger compact model, inquiries from prospective franchisees have quadrupled compared to the same period last year, and the number of new franchise stores has increased by 167%. The site selection strategy is also favoring small-scale entrepreneurs: more than half of this year’s new stores are concentrated in university districts and academy areas, allowing the brand to quickly establish itself in locations with strong demand for cost-effective dining.

Shinsegae Food plans to further reduce the financial burden for prospective No Brand Burger franchisees going forward. By improving the efficiency of kitchen equipment and interior finishing materials, the company aims to cut startup costs by an additional 10% from the current level in the low 100 million won range. Through these measures, Shinsegae Food intends to lower the initial burden on aspiring business owners and continue expanding its franchise network.

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