Latest news with #HanwhaGalleria
Korea Herald
2 days ago
- Business
- Korea Herald
Hanwha says Five Guys Korea leads in sales, but divestment still on table
Hanwha Galleria, the retail unit of South Korea's Hanwha Group, said Five Guys Korea is the burger brand's top performer globally, dismissing speculation that a potential sale is tied to weak financials. In a statement released Thursday, the company pushed back on rumors of declining profitability at Five Guys Korea, calling them "baseless," and cited steady growth supported by globally leading sales figures. Sources earlier indicated that FG Korea, a wholly owned subsidiary of Hanwha Galleria, had engaged local accounting firm Samil PwC to circulate sale documents to private equity firms, though the company maintains that no final decision has been made. 'Our stores in Korea currently rank first in average sales per store among more than 1,900 Five Guys outlets worldwide,' the company said. 'Multiple locations are listed among the global top five in sales.' Addressing concerns over profitability, Hanwha Galleria countered that its royalty structure aligns with global franchise standards and is not disproportionately high. The company pointed to FG Korea's financial performance in support of its claims. The unit posted 46.5 billion won ($33.4 million) in revenue last year, with 3.4 billion won in operating profit and 2 billion won in net income. Since launching in June 2023, Five Guys Korea has opened seven locations across key commercial districts in the Greater Seoul area, encompassing the capital, Incheon and Gyeonggi Province. An eighth store recently opened at IPark Mall in Yongsan, central Seoul, and the company is on track to operate nine stores by year-end. Five Guys' strong debut in Korea has already spurred plans for regional expansion. Hanwha signed a memorandum of understanding with Five Guys International to lead the brand's entry into the Japanese market. While acknowledging that a sale of FG Korea is under consideration, the company emphasized that it is not a step away from the business, but rather a move aligned with its long-term growth goals. "Any consideration of a sale is a sound business decision that serves the interests of the company and its shareholders," the company noted. Should a sale proceed, Hanwha said the funds would be directed toward new growth initiatives and strengthening its retail portfolio. "We are exploring a full range of possibilities as we deliberate the strategic path forward," the company added. 'We will share further details once our direction becomes clearer.'
Korea Herald
17-07-2025
- Business
- Korea Herald
Two years in, Hanwha mulls sale of Five Guys Korea
Hanwha Galleria, the retail arm of Hanwha Group, is reportedly exploring the sale of FG Korea, operator of US burger franchise Five Guys in South Korea, two years after bringing the brand into the country. According to sources on Thursday, FG Korea, a wholly owned subsidiary of Hanwha Galleria, recently circulated documents to private equity firms through local accounting firm Samil PwC signaling a potential sale process. Although no deal terms or valuation have been finalized, a full sale of the 100 percent stake appears likely if a deal materializes, the sources explained. Five Guys entered the Korean market in June 2023 as one of the pet projects led by Hanwha Galleria Vice President Kim Dong-seon, the youngest son of Hanwha Group Chair Kim Seung-youn. The potential sale comes as Hanwha Galleria looks to streamline its portfolio and cut costs, including royalty payments to Five Guys' US headquarters, though contractual obligations with the franchisor limit unilateral decision-making. 'We are reviewing a range of options in consultation with the global headquarters to reinforce the brand's competitive edge,' Hanwha Galleria said in a regulatory filing, adding that no final decisions have been made and that further developments will be disclosed within a month. Since entering the Korean market, the company has expanded from its first location in Gangnam, southern Seoul, to seven stores, with an eighth set to open later this month at IPark Mall in Yongsan, central Seoul. Last year, the company signed a memorandum of understanding with Five Guys International to lead the brand's expansion into Japan, with a goal of opening over 20 stores in seven years. FG Korea turned a profit last year, posting 46.5 billion won ($33.4 million) in revenue, 3.4 billion won in operating profit and 2 billion won in net income.
Korea Herald
27-05-2025
- Business
- Korea Herald
A scoop of competition: Hanwha's Benson challenges Baskin-Robbins' 40-year reign
Kim Dong-sun, vice president of Hanwha Galleria and third son of Hanwha Group Chairman Kim Seung-youn, on Friday launched premium ice cream brand Benson with its first store, Benson Creamery Seoul, in Apgujeong. All eyes are on whether it can challenge market leader Baskin-Robbins. Betterscoop Creamery is a new Hanwha Galleria subsidiary led by Oh Min-woo, who also oversaw the launch of the hamburger chain Five Guys in Seoul in 2023. 'Vice President Kim was deeply involved in the brand's direction and decision-making,' Oh said during a May 19 press briefing. This isn't Hanwha Galleria's first foray into ice cream. In 2018, it launched EBA (Everything But Artificial) Ice Cream, which was discontinued in 2023 due to limited reach and low brand recognition. Learning from that, Hanwha has taken a more strategic approach with Benson, applying for a new trademark and securing a dedicated manufacturing facility in Pocheon. Benson is positioned as a premium offering, using only domestic milk and cream, acacia honey, and single-origin Tanzanian chocolate. A single 100g cup is priced at 5,300 won ($3.73) — about 1,400 won more than a Baskin-Robbins single regular. A pint (320g) costs 15,300 won, 5,500 won more than Baskin-Robbins' 9,800 won. 'The target demographics for Benson and Baskin-Robbins are likely very different,' an industry insider noted. 'Benson's location in Apgujeong signals a deliberate premium strategy.' The company plans to open 10 to 20 directly operated stores this year. While market entry won't be easy, CEO Oh said the goal is not direct competition. 'We're not reacting to any one competitor. We hope to elevate the overall ice cream market and offer more options to consumers.' Meanwhile, SPC's Baskin-Robbins is marking its 40th anniversary in Korea with a renewed brand vision, 'ICET' (Innovation, Collaboration, Environment, Technology). 'We aim to go beyond variety and explore new value,' said Hur Hee-soo, SPC Group vice president and son of Chairman Hur Young-in, credited with bringing Shake Shack to Seoul in 2016. Baskin-Robbins recently launched a Cheongdam flagship store featuring its Deep Collection, made with higher milk fat and Echire milk, alongside lower-calorie, reduced-sugar options and AI-developed flavors. Since its first store opened in Myeong-dong in 1986, the brand has expanded to over 1,500 locations nationwide.
Korea Herald
19-05-2025
- Business
- Korea Herald
Hanwha's new ice cream brand Benson debuts in Apgujeong
Betterscoop Creamery, the ice cream business subsidiary of Hanwha Galleria, held a press conference ahead of Friday's official opening for premium ice cream brand Benson's first store, Benson Creamery Seoul, on Monday. Located a one-minute walk from Apgujeong Rodeo Station Exit No. 5, the store is surrounded by popular restaurants and select shops, including the Hanwha-introduced Five Guys US burger franchise, and sees high traffic of young people and tourists. 'Just like our slogan 'Freeze the Moment,' we hope that our customers can share their precious memories encapsulated in each ice cream scoop here at Benson,' Betterscoop Creamery CEO Oh Min-woo said. Hanwha Galleria Vice President Kim Dong-seon, the driving force behind the ambitious premium ice cream brand project, provided significant input throughout the launch process — from setting the overall direction to giving detailed product feedback, the CEO explained. To focus on the original taste and quality of ingredients, Betterscoop Creamery established its own production facility in Pocheon, Gyeonggi Province. All dairy products are domestically sourced, and the milk fat content has been raised to as much as 17 percent to create a rich flavor. Air content has been reduced to about half that of conventional products, with an average of 40 percent, resulting in a dense texture. Twenty flavors are available, with a single cup priced at 5,300 won. Seasonal and special menus will rotate regularly. Unique features at the three-floor store include an experiential space where customers can participate in the entire process, from ingredient selection to production and packaging, as well as a tasting lounge, where a premium dessert menu using Benson products will be available in collaboration with Chef Justin Lee, the first Korean to win France's prestigious gastronomy award, "La Liste," last year.
Korea Herald
15-04-2025
- Business
- Korea Herald
Hanwha expands F&B portfolio with new ice cream brand
Betterscoop Creamery, the ice cream business subsidiary of Hanwha Galleria, said Tuesday that it will officially launch its new ice cream brand, Benson, in May. Industry insiders see Hanwha Galleria Vice President Kim Dong-seon's entry into the premium ice cream market as a natural extension of his success in introducing the Five Guys burger franchise to Korea in 2023. Strengthening its food and beverage portfolio further, Hanwha Galleria acquired the US-based robotic pizza brand Stellar Pizza in March last year. In September, Kim led the acquisition of Korean beverage manufacturer Pureplus, and soon after decided to establish the ice cream business as a separate corporation under the name Betterscoop Creamery. According to the company, the name Benson — a common personal name in the US — was chosen for its associations with 'honesty' and 'trustworthiness,' reflecting the brand's core values. All Benson products are made using milk and cream sourced locally from Korea, with the goal of delivering a denser texture and richer flavor. The use of premium ingredients, such as Korean acacia honey and rare single-origin Tanzanian chocolate, further differentiates Benson from its competitors, the company explained. The first Benson store will open in Apgujeong Rodeo, a posh neighborhood in Seoul's Gangnam district known for its trendy restaurants and curated retail shops. Its proximity to both the Galleria Department Store and the Five Guys Apgujeong location is expected to create synergy among Hanwha's affiliated businesses. This mirrors the strategic approach used for Five Guys, which targeted expansion into major commercial districts across Seoul and the greater capital region, including Banpo, Seoul Station, Yeouido and Pangyo. Ahead of Benson's official debut, Betterscoop Creamery finalized the construction of a dedicated ice cream production facility in Pocheon, Gyeonggi Province, which began operations this month. 'With so many trend-conscious and socially active young consumers in the area, we believe Apgujeong Rodeo is the ideal location to showcase Benson's unique identity,' a Betterscoop Creamery official said. 'We've focused on maximizing the natural qualities of each ingredient to craft flavors that stand out.' Meanwhile, the Korean ice cream market has traditionally posed challenges for new entrants, with most brands struggling to rival early market leader Baskin-Robbins. Natuur, a premium brand from Lotte Wellfood, once seen as a strong challenger to Baskin-Robbins, saw its number of stores decline from 51 in 2021 to just 25 in 2023. Cold Stone Creamery, brought into Korea by CJ Foodville, exited the market in 2015 — nine years after its debut — while Shinsegae Food's Oslo now maintains only a minimal presence, with six locations as of last year.
