BGF Retail, operator of convenience store chain CU, announced a support package for franchisees affected by product supply disruptions caused by the trucker union's strike. The plan includes compensation for out-of-stock and disposal losses, along with condolence payments of up to 1 million won ($740) per store depending on region and location.
BGF Retail said Monday that it had issued a notice to franchisees and employees outlining specific support measures for franchise damages caused by logistics instability. The support package is largely divided into store subsidies and condolence payments. Store subsidies include cold-chain out-of-stock support and ready-meal disposal compensation, while condolence payments will be distributed across four categories based on region and individual store. The payments will be reflected in Monday's settlement statements and deposited individually on Tuesday.
The cold-chain out-of-stock subsidy will cover the full store sales margin assumed under normal sales for all refrigerated and frozen product shortages from April 5 to 30, regardless of supply conditions. The ready-meal disposal support will also fully compensate disposal costs incurred during the same period.
The store condolence payment is an additional subsidy on top of actual damage compensation. Regional condolence payments will be differentiated by area according to the level of supply instability, with up to 300,000 won provided. Store-specific condolence payments will be paid up to 700,000 won per store, taking into account factors such as shortages and delayed deliveries.
"While the company has also suffered significant damage from this supply disruption, as the franchise headquarters we have prioritized store stability and prepared a broad support package that includes both substantive compensation and condolence payments," a BGF Retail official said. "Taking this opportunity, we have once again confirmed that the headquarters and franchisees are one community, and we will actively work to grow together based on a solid partnership going forward."
Meanwhile, BGF Retail used the notice to call for unity among all stakeholders working with CU, including franchisees, headquarters, partners, logistics centers and delivery drivers, and delivered a message to further elevate the value and status of the company as a top-tier brand.
