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Shinsegae Food's burger franchise No Brand Burger is winning over young entrepreneurs with its low-capital startup model. In the first half of this year, one in four new franchise owners was in their 20s or 30s.
On the 9th, Shinsegae Food announced that people in their 20s and 30s accounted for about 25% of new No Brand Burger franchise owners in the first half of this year. This is roughly double the figure from the same period last year.
The company explained that the increase reflects a rise in prospective entrepreneurs seeking franchises that offer low initial investment burdens while allowing stable operations, amid prolonged high prices and an economic downturn.
No Brand Burger operates various startup models, including standard stores and compact stores, depending on the commercial district and investment conditions. The compact store, introduced in May last year, is designed to enable startup with an investment cost in the low 90 million won range, lowering the initial cost burden.
Such startup costs are low even compared with competing brands. According to the Fair Trade Commission's information disclosure documents, Mom's Touch's standard startup cost is in the 110 million won range, Lotteria's is in the 420 million won range, and Burger King's is in the 600 million won range.
Including store acquisition costs, total startup costs are known to be in the 200 million to 300 million won range for Mom's Touch, over 600 million won for Lotteria, and around 700 million won for Burger King. No Brand Burger's standard startup cost for a general store (based on 40 pyeong) is also in the 310 million won range, but a compact store can be opened for a substantially lower amount in the low 90 million won range, a move seen as greatly lowering the barrier to entry.
While store size was reduced, operational efficiency was secured by improving kitchen workflow and space efficiency, and by standardizing menu preparation and store operating systems, allowing even entrepreneurs with little food-service experience to run stores relatively easily.
Social media (SNS) marketing run directly by young owners is also cited as a factor boosting brand competitiveness. They produce short-form content introducing new menu items, store events, and promotions for local customers to communicate with customers.
The SNS channel operated by the owner of the Mungyeong City Hall branch has recorded a cumulative 4 million views, while the Gwangju Ssangchon branch, which has run its channel with employees in their 20s since last month, has surpassed 600,000 cumulative views, driving local customer traffic.
Shinsegae Food said the content created by young owners goes beyond store promotion, strengthening the brand's young and dynamic image and heightening interest among prospective entrepreneurs of the same generation. The company plans to expand franchise-participation marketing programs and region-tailored marketing support to help young owners run their stores stably.
