Franchise Dilemma: Falling Value and Controversy at Paik's Coffee
Creatrip Team
a year ago
Paik's Coffee, a popular low-cost franchise in South Korea known for offering affordable coffee, is facing challenges as more franchise owners are putting their stores up for sale. The decline in profitability, partly due to rising raw material costs and stagnant consumer prices, is exacerbated by controversies surrounding the brand's founder, Baek Jong-won. Even though the number of stores has doubled in recent years, fierce competition and recent controversies regarding Baek's legal issues have further pressured the business. Many store owners, fearing a further drop in franchise fees, are eager to sell their stores at reduced prices.
