[News Space=Reporter seungwon lee] Native burger and chicken brand Mom's Touch announced on the 22nd that it has supported the renewal of 20 franchisees and the relocation of 10 franchisees through the 'Re-born' project starting in June 2023, and that the profits of the supported franchisees have significantly increased, with the monthly average sales growth rates reaching 49% and 265%, respectively.
Since June of last year, Momstouch has been carrying out the 'Re-born' project to maximize sales at existing franchises through renewal and relocation of low-selling and old franchises.
The Symbiotic Ribbon Project consists of two parts: ‘renewal’, which involves building new facilities such as pizza production lines and replacing interiors through subsidies for opening new Mom’s Pizza Shop & Shop stores, and ‘relocation’, which involves helping to relocate stores to key commercial areas based on a strategic store opening analysis after a precise diagnosis of the franchisee’s current sales level, local commercial area, population, etc.
The 20 renewal stores were selected from existing Mom’s Touch franchises that are expected to generate stable additional revenue through the opening of Mom’s Pizza Shop & Shop. The 10 relocation stores are small, old stores that have been in operation for an average of 10 years in alley commercial districts, and have been reopened as mid- to large-sized stores located in nearby key commercial districts with active support from the franchise headquarters.
In particular, Mom's Touch Seoul 'Mokdong Branch', which opened in 2006, recorded a whopping 786% increase in sales after relocating from a small, delivery-oriented store to a key commercial area with a high footfall. Daejeon 'Hannam University Branch', which opened in 2014, has seen a significant increase in sales due to the strategic opening of franchise headquarters, with sales increasing by 82% due to new customer acquisition after the support for the opening of Mom's Pizza Shop & Shop in March.
momstouch has grown through a strategy of opening small stores in alleyways, back streets, and residential areas where startup costs are low in the early stages of the franchise business, and has solidified its position as the industry leader in terms of number of stores, surpassing 1,400 stores for the first time in the industry in 2022.
momstouch, which celebrates its 20th anniversary since its brand launch this year, is prioritizing the improvement of sales in low-sales and old franchises rather than indiscriminately opening new stores based on the principle of mutual growth management. Accordingly, it plans to accelerate franchise communication and commercial area analysis by supporting additional relocation and shop-and-shop openings by next year.
A representative of momstouch said, “The mutual growth of franchise businesses is based on stable and sustainable operations between franchisees and the franchise headquarters,” and “We are helping to improve the profitability of old franchisees who are struggling due to low sales or relocation of business districts. Next year, we will expand our support for relocation and renewal from a mutual growth perspective, targeting a total of 50 stores.”