April 25, 2024

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[THE INVESTOR] Haimarrow Food Service, a local hamburger franchise operator, announced on Oct. 25 that it has decided to officially enter the US before the year-end.

Established in 2004, it is known for its hamburger franchise chain Mom’s Touch, which currently has over 1,140 stores as of August. Its operating profit this year is expected to increase 49.5 percent to 23.1 billion won (US$20.28 million).

The company opened a pilot Mom’s Touch store in California in January. According to industry sources, after getting a positive reaction from customers, it has decided to officially enter the US through a joint venture or master franchise contract with a local company to minimize its risks and costs. It plans to minimize its investment to around 2 billion won as it considers foreign operations risky.

It entered China in 2004, but had to shut down after two years, mainly due to lack of preparation and understanding of the market. It has since been cautious about expanding overseas.

The Korean firm currently operates seven stores in two countries overseas -- Vietnam and Taiwan. It has differentiated approaches in different countries. It established a wholly owned subsidiary in Vietnam in 2015, but opted for a joint venture in Taiwan in 2016.

It has also recently signed a 10-year master franchise contract with local firms in Singapore and Malaysia. A new store in Malaysia is set to open next year.

By Song Seung-hyun (ssh@heraldcorp.com)