Restaurant franchise management is the rage among second- to fourth-generation chaebol scions. These superrich ― who have either studied abroad or go on frequent business trips ― are bringing over famous foreign restaurant brands that they patronize overseas, or taking inspiration to build and bring in restaurants that suit their culinary taste. With these business endeavors, they have set off new trends in the Korean restaurant scene.
Conglomerates’ recent foray into the restaurant business is also due to the fact that it is easier to step into the field with relatively less capital, and potential losses are also much smaller compared to other industries. This makes it a low-risk way to expand their business while displaying their cultural sensitivities.
While these attempts allow Korean consumers to experience a wide range of global cuisines, there is also criticism that the business is actually too lucrative.
We looked into the Korean superrich who brought their taste of foreign cuisine into Korea.
Shinsegae Group vice chairman Chung Yong-jin is famous in financial circles for having a refined taste. One of his best-known instances of brand management is when he brought Starbucks to Korea in 1999, as he enjoyed the coffee while he was studying abroad at Brown University. Starbucks has since become immensely popular in Korea, setting off a coffee craze across the country.
Chung had also brought in famous U.S. restaurants that suit his culinary experience and preferences. Among them are Devil’s Door ― a craft beer specialty store that is noted for allowing customers to watch their beer brewing process ― and Gelati Gelati ― a gelato cafe that was first brought to fame in Hongdae.
There is also Isabelle’s the Butcher, a dry-aged steak restaurant, and “Olbaan,” a Korean food buffet restaurant. The management of multiple restaurant brands comes naturally to Chung, who has frequently made his passion for food well known by stating his tastes through social media.
However, Chung has also experienced some failures in restaurant management, most notably Johnny Rockets, an American burger brand, which that suffered poor sales and closed all its branches save for select spots in Shinsegae Department Store.
Maeil Dairies CEO Kim Jung-wan is also known for seeking out renowned restaurants overseas. Whenever he is on a business trip, he is said to try out as many dishes as possible, going so far as to even try food he usually doesn’t like in order to make the most of his experience.
In 2009, Kim brought in The Kitchen Salvatore Cuomo, an Italian restaurant brand established by celebrity chef Salvatore Cuomo ― Cuomo operates in Japan and had popularized Italian dishes such as Neapolitan pizza to Japan and other Asian countries. Since opening near Dosan Park, Sinsa-dong, the restaurant has become a popular spot for many business executives for its inexpensive Naples-style Italian cuisine.
Kim also opened cafe Paul Basset in 2009 due to his love of coffee. The cafe is notable for having world-famous barista Paul Basset involved in the creative process, including training the staff to use coffee beans that he personally selected.
Chae Dong-seok, vice chairman of Aekyung Group, has also forayed into the restaurant business. Whenever he went on a business trip to Japan, Chae would frequent Ippudo, a ramen shop in Fukuoka. In 2011, Chae decided to bring the restaurant brand to Korea altogether.
Chae’s favorite dish in Ippudo is said to be Karaka-men, a ramen dish with a soybean paste broth topped with pork slices and soft-boiled eggs.
His love for Japanese food did not stop there, as he also brought in Tokyo Hayashi Rice Club, a Japanese curry restaurant brand.
Shin Dong-bin, CEO of Lotte Group Korea, isn’t known for expressing his preferences, but he had brought Krispy Kreme Doughnuts to Korea in 2004 in a rare display of personal taste.
Shin, who studied at Columbia University, is said to have enjoyed eating at Krispy Kreme Doughnuts during his stay, and says that eating a Krispy Kreme doughnut still takes him back to his university days.
Chung Ji-sun, chairman of Hyundai Department Store Group, has involved himself in the business by finding restaurants that suit his taste and opening them in the food courts of his department stores.
Some of the chosen restaurant brands include Vezzly ― a bakery brand, and Bonga Sushi, a conveyer-belt sushi restaurant. Chung also brought in Hansot Naengmyeon, a restaurant brand belonging to Hyundai Green Foods, in which he has a 12.7 percent stake.
By The Korea Herald Special Investigative Team
(
sangyj@heraldcorp.com)
Kwon Nam-keun, Hong Seung-wan, Sung Yeon-jin, Bae Ji-sook, Yoon Hyun-jong, Min Sang-seek, Kim Hyun-il, Sang Youn-joo
