One out of 10 coffee franchise stores in South Korea closed down due to sluggish sales last year, while average revenue of entire franchised shops fell 5.8 percent from two years ago.
According to data from business tracker CEO Score on Wednesday, total 118 franchise headquarters registered at Korea Franchise Association had 87,540 member shops across the nation as of the end of last year. About 6 percent of the stores went out of business and 6,784 changed ownership in 2017, while 10,227 stores newly opened.
By sector, the business closure rate was the highest for coffee and beverage stores at 8.5 percent, followed by vehicles retailers at 7.5 percent, chicken chains 7.5 percent, restaurants 7.3 percent, cosmetics shops 6.5 percent and pizza chains 6.4 percent.
Average sales of the franchised stores reached 351.5 million won last year, down 5.8 percent from two years ago. Nine out of 10 sectors except for retail shops saw their combined revenue decline, and car stores showed the biggest drop of 19.9 percent from 279.9 million won in 2015 to 224.1 million own in 2017.
Retail shops raked in 2.05 billion won in sales on average, followed by convenience stores 445.1 million won, cosmetics shops 428.2 million won, restaurants 318.5 million won and bakeries 293.4 million won.
By Lee Han-na and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]