[Edaily Reporter SIN SOO-JUNG ] #The BORN Korea has completed 128 improvement tasks identified during brand roundtables over the past year since launching a consultative body for mutual growth with its franchisees. The BORN Korea announced on the 30th that it held a meeting on the 29th to commemorate the first anniversary of the launch of its Mutual Prosperity Committee in the conference room of the startup briefing hall at The BORN Korea’s annex in Seocho-gu, Seoul.
The BORN Korea Mutual Prosperity Committee was launched on June 30 of last year. It is a tripartite consultative body comprising franchisee representatives, head office executives, and external experts. External committee members include Ahn Jin-geol, Director of the Institute for People’s Economy; attorney Park Kyung-jun; and Yoo Hyo-sang, Director of the Unicorn Economic Research Institute.
The Mutual Prosperity Committee has completed 128 of the 130 improvement tasks identified during brand-wide roundtable discussions held since last year, excluding two that are currently in progress. This year, the company plans to conduct 90 small-scale training sessions for its foodservice brands by July. Approximately 80% of the improvement tasks identified during these training sessions have also been implemented.
Through the Mutual Prosperity Committee, The BORN Korea has been promoting operational support, system improvements, and brand revitalization. In the area of operational support, initiatives included the introduction of an OMS card payment system for franchisees to place orders, discussions to improve B2B terms with delivery platforms, and the provision of promotional materials related to the Livelihood Recovery Support Fund.
In terms of system improvements, the company reduced running royalties on delivery sales, allowed monthly installment payments for fixed royalties, lowered fixed royalties on an annual basis, and introduced a card payment system for monthly rent. These measures are intended to reduce the financial burden on franchisees.
Support for brand revitalization was also carried out in parallel. The BORN Korea launched integrated discount campaigns for its restaurant brands, implemented brand-specific outdoor advertising, developed “shop-in-shop” brands, and resumed YouTube marketing. Including last year’s integrated discount campaign and other mutual growth support funds totaling 300억 원, the total amount of support provided to franchisees through the Mutual Growth Committee amounted to approximately 435억 원.
Future tasks were also discussed at the meeting. The BORN Korea decided to expand its brand-specific communication system by adding six new brand councils to the existing 12. The company also plans to strengthen a structure that allows headquarters and franchisees to make joint decisions when external issues arise. Other key tasks addressed included developing brand promotion strategies, expanding outdoor advertising, and strengthening systems to counter false information from external sources.
Yoo Hyo-sang, President of the Unicorn Economic Research Institute, stated, “It is now time for The BORN Korea’s Win-Win Committee to move beyond ‘survival’ and take a leap toward a focus on ‘growth and development.’” He added, “Since there can be no growth without a sense of crisis, it is also necessary to diversify the structure so that the headquarters and franchisees can join forces to engage in constructive discussions aimed at growth.”
Attorney Park Kyung-jun remarked, “There are not many cases among franchise headquarters where a Mutual Prosperity Committee has been established and operated effectively,” adding, “The BORN Korea is taking the lead in operating this committee and striving to resolve on-site issues is highly significant.”
Ahn Jin-geol, Director of the People’s Economy Research Institute, remarked, “Over the past year, both the company and franchisees have made great efforts despite difficult conditions,” and expressed his hope that “The BORN Korea’s Mutual Prosperity Committee will continue to establish itself as a model of mutual prosperity for the franchise industry.”
Baek Jong-won, CEO of The BORN Korea, said, “I believe the most significant outcome of operating the Mutual Prosperity Committee over the past year is that it has created a structure where headquarters and franchisees meet more frequently and share on-site challenges more directly,” adding, “Going forward, headquarters will step in more proactively when franchisees face difficulties, and we will continue to develop ways for the brand to grow together.”
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