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The No. 1 pork yakiniku restaurant chain in Korea in terms of number of locations, now holds the Japanese master license!
Hanam is a top brand in South Korea, with over 300 locations, and is synonymous with samgyeopsal (Korean pork belly). They have already expanded into Malaysia, Indonesia, and Japan (only one location), and are now seeking a master license partner in Japan, which will grant them the right to recruit franchisees for the entire Japanese market, not just a single location. Their strengths lie in their domestic and international marketing activities, including appearances in the popular Netflix Korean drama "Hospital Playlist" and collaborations with Lawson on cup noodle sales. They are committed to the thickness and quality of their meat, which is initially grilled over charcoal and then seared in front of the customer before serving.
Estimated Startup Cost:¥10,000,000 or More
Industry:Food & Beverage/Delivery
This project includes not only the right to operate a store in Japan, but also the right to recruit franchisees and conduct a franchise business in Japan. With simple franchise membership, profits tend to plateau, but with this project, you will receive royalties from franchisees developed by the headquarters, as well as profits from intermediate material margins, so there is no limit to how much you can earn depending on your performance. When it comes to the expansion of overseas franchises into Japan, Mister Donut is considered a successful example, but it is uncertain whether a brand will be well-received in Japan from scratch... However, this brand already has a store in Shin-Okubo with an average monthly sales of about 11 million yen. Furthermore, the royalties from that store will be returned to the partner as profit as the project progresses.
With over 170 physical stores and more than 300 stores including virtual locations in South Korea, the brand has become the largest in the country, to the point that when people think of samgyeopsal, they immediately think of Hanam. Unlike trendy sweets, the brand has continued to grow for over 10 years since its founding, focusing solely on samgyeopsal, the national dish of Korea, so there is no need to worry about it being a one-hit wonder. The head office has invested considerable funds in marketing, and its recognition among Japanese people is gradually increasing, thanks to appearances in the popular Netflix Korean drama "Hospital Playlist" and collaborations with Lawson on the sale of cup noodles.
In fact, there is only one directly managed store in South Korea. In the past, they operated several stores, but the headquarters transferred them in order to focus solely on supporting franchisees. It is no exaggeration to say that there is virtually no difference in quality between stores, as everything from recipes and manuals to store interiors is standardized. For this reason, it is a characteristic of this brand that many franchisees operate multiple stores, accounting for more than 30% of all franchisees. The same applies to operations in Japan, where the headquarters provides one-stop support, including a comprehensive training system, management structure, and assistance in building a franchise headquarters.
*All conditions are subject to change depending on negotiations, so please consider this information for reference only.
License agreement fee: 30 million yen
Flagship store opening costs: Approximately 20 million yen (including property acquisition costs)
Royalties: 3-4% to headquarters (5-6% expected to be collected from area franchisees)
Franchise fee per store: 1.5 million yen to headquarters (approximately 3 million yen expected to be collected from area franchisees)
POS Sales: 11,572,720 (Actual sales figures for Shin-Okubo store, December 2023)
Royalties: 347,182 (3.0%)
Material Costs: 3,240,362 (28.0%)
Labor Costs: 2,777,453 (24.0%)
Telephone/Internet Charges: 11,573 (0.1%)
Utilities: 219,882 (1.9%)
Taxes and Public Charges: 92,582 (0.8%)
Property Rent: 800,000 (6.9%)
Repair Costs: 23,145 (0.2%)
Insurance Premiums: 312,463 (2.7%)
Consumable Supplies Purchase Costs: 69,436 (0.6%)
Other Miscellaneous Expenses: 115,727 (1.0%)
Total: 8,009,805 69.2%
Profit: ¥3,562,915 (30.8%)
Other revenue for the FC headquarters will fluctuate significantly depending on the expansion performance.
Language support will be provided 365 days a year by Global Access, a Japanese intermediary company (at no cost). All support related to opening a store will be handled by Hanam headquarters, just as in Korea. The specific roles and responsibilities will be determined during negotiations.
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