Goobne grows in Hong Kong after China rebuff
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Korean chicken franchise Goobne has opened a seventh outlet in Hong Kong, in a residential area in Tseung Kwan O.
It is part of the brand’s strategy to focus on profitable markets as its business in Mainland China has been hit by the Beijing/Seoul dispute over the deployment of the THAAD missile system in South Korea.
“We had two branches in China but now are left with one in Suzhou,” says a company spokesperson. “Our store in China is not very profitable.”
Another chicken franchise, BBQ, which has more than 150 stores in China, said in May that it was unable to expand as its local partner refused to invest further in Korean firms.
Goobne, meanwhile, has 11 stores in Japan and Macau as well as China and Hong Kong. Its monthly sales overseas reached 1.5 billion won (US$1.3 million) on average this year, with its Hong Kong sales accounting for about 1.3 billion won.
“We are doing well in Hong Kong,” says the spokesperson. “The first store in Tsim Sha Tsui alone showed more than 400 million won in sales monthly last year.”
Questions & Answers
Q.Why did Goobne reduce its presence in Mainland China?
Why did Goobne reduce its presence in Mainland China?
Goobne's business in Mainland China was affected by the Beijing/Seoul dispute regarding the THAAD missile system. This situation led to its decision to close one of its two branches there, as the remaining store is not very profitable.
Q.How much do Goobne's Hong Kong operations contribute to its overall overseas sales?
How much do Goobne's Hong Kong operations contribute to its overall overseas sales?
Goobne's Hong Kong sales account for approximately 1.3 billion won per month. This figure makes up the vast majority of its average monthly overseas sales, which are reported as 1.5 billion won this year.
Q.What was the monthly sales performance of Goobne's first Hong Kong store last year?
What was the monthly sales performance of Goobne's first Hong Kong store last year?
Goobne's first store, located in Tsim Sha Tsui, performed strongly last year. It achieved monthly sales exceeding 400 million won, indicating good local market reception.
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