No Brand Burger's E-mart Haeundae location. [Shinsegae Food]
No Brand Burger's E-mart Haeundae location. [Shinsegae Food]

Shinsegae Food's No Brand Burger franchise has seen a growing number of operators running two or more locations, the company said Wednesday.

As of late July, the total number of stores run by multi-unit franchisees — those operating at least two No Brand Burger locations — reached 42, up 133 percent from 2023, according to Shinsegae Food. Over the same period, the share of all No Brand Burger stores operated by multi-unit franchisees expanded from 9 percent to 15 percent.

That means roughly one in every seven No Brand Burger stores is now run by the same franchisee. Multi-unit operators manage an average of 2.6 stores each, and the most prolific franchisee currently runs nine locations.

Shinsegae Food attributed the trend to franchisees gaining confidence through hands-on experience. "Even as uncertainty in the food-service industry has grown amid an economic slowdown and weakening consumer spending, existing franchisees have seen for themselves that the business offers profitability, operational stability and room for expansion — and have moved to open additional stores," the company said.

A compact store model introduced in May last year has helped accelerate the multi-unit expansion. Designed for low-capital entry, the format requires roughly 50 square meters of space and a startup investment in the low-90 million won ($62,900) range. Since the compact model launched, the number of stores operated by multi-unit franchisees has risen 46 percent year on year.

"Demand from existing franchisees for additional openings will continue to grow, backed by reasonable investment costs, a standardized operating system and the brand's competitiveness," a No Brand Burger official said. "We will strengthen our support in market analysis, store operations know-how and marketing so that franchisees can expand their businesses on a stable footing."


korean@heraldcorp.com