[Edaily Reporter kim mi-kyung ] The BORN Korea significantly reduced its operating loss while achieving revenue growth in the second quarter of this year. Despite adverse conditions such as a slump in the restaurant industry, the company is credited with improving its bottom line through normal business operations by continuing to invest in franchisee support and business expansion. In particular, some observers interpret this as a sign that a series of “owner risks” surrounding CEO Baek Jong-won have begun to subside as the company has put various controversies behind it.

#The BORN Korea announced in a regulatory filing on the 14th that it recorded consolidated revenue of 83.2 billion won and an operating loss of 5.6 billion won for the second quarter of this year. This represents a 12% increase in revenue compared to the same period last year and a significant 75% reduction in the operating loss. Cumulative revenue for the first half of the year was 162.8 billion won, down 11.9% from the same period last year. During the same period, the operating loss decreased by 40.1% to 9.8 billion won.

The improvement in earnings was influenced by the base effect from the large-scale mutual growth support funds disbursed last year. Promotion expenses deducted from revenue—including mutual growth support—totaled 6.8 billion won in the first half of this year, a significant decrease from 24.4 billion won in the same period last year. However, the company continued to post a loss as it reflected costs related to supporting franchisees in response to the downturn in the restaurant industry and investments in new businesses. Sales promotion expenses for the second quarter of this year amounted to 2.2 billion won, a 17.4% increase from the same period last year.

The BORN Korea carried out nationwide integrated dining promotions, promoted the use of its new mobile app, and reorganized its brands. The company also continued to invest in expanding restaurant meal replacements (RMR) using its brand intellectual property (IP) and in establishing a foundation for overseas operations.

The company plans to expand its business scope beyond franchising to become a comprehensive food company. It intends to strengthen its business-to-business (B2B) operations using its proprietary sauces and its online distribution business, while also broadening its business portfolio in overseas markets. In particular, starting this year, the company is accelerating efforts to secure new growth engines through strategic mergers and acquisitions (M&A) and the expansion of overseas operations. The company is pursuing initiatives such as expanding its global B2B business based on TBK Sauces, developing content IP, diversifying its distribution product lineup, and launching new domestic ventures.

For its overseas operations, the company will expand its portfolio with a focus on North America, Southeast Asia, China, Japan, and Europe. The strategy is to transform the company into a comprehensive food company by extending the brand equity and restaurant management capabilities accumulated through its franchise business into food manufacturing, distribution, and global operations.

A representative from The BORN Korea stated, “While the second quarter of last year was an exceptional period during which we injected large-scale mutual support funds to overcome the downturn in the restaurant industry, this year we are improving a significant portion of our performance while maintaining normal business operations.” The representative added, “To expand our business as a comprehensive food company, we will continue to invest in building a foundation for distribution and overseas operations, and through this, we will secure new growth engines.”