Hi Brunch Philippines to debut in Robinsons

1 min readUpdated Jul 29, 2016Jul 29, 20166:00 AM

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Expanding for the first time outside its home market of Korea, cafe chain Hi Brunch is set to make the Philippines its number three market.

Korean food franchisor Sim Woo has partnered with Filipino-American entrepreneur Susan Barlin, for the Hi Brunch Philippines and Southeast Asia franchises. Barlin is a real estate executive who also owns a multi-level marketing business.

Hi Brunch Philippines will offer porridge and desserts along with coffee.

Formed in 2015, Sim’s holding company Midang FC already has 250 stores in Korea and two in Tokyo. The company is eyeing franchise stores Taipei, Taiwan, Kazakhstan, China, and Southeast Asia, particularly Singapore, Indonesia and Malaysia.

Hi Brunch Philippines is set to open a store in Robinsons Galleria in two to three months.

It will also open in Bonifacio Global City, Alabang, Tagaytay and Cebu. Barlin said the master franchise in the Philippines will open six company-owned stores among the 25 outlets planned for one year.

Barlin said the food will be prepared in Korea and shipped frozen to the Philippines for cooking. Authentic Korean dessert bingsu (snow ice flakes topped with sweets) will also be offered at Hi Brunch.

“We will not only import but we’ll make things here,” Sim said, adding that if food products are available in the Philippines, these may be locally sourced. For example, for the snow ice flakes, fresh Philippine mangoes are better than frozen, he said.

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What this means

Hi Brunch's aggressive entry into the Philippines, with 25 planned stores and a master franchise, indicates a high-stakes play using Korean food's popularity. This model, similar to Panpuri's multi-store expansion plans across Asia, could quickly establish market share. However, shipping frozen ingredients from Korea presents potential logistical and quality control risks, contrasting with local sourcing efforts by brands like Kau Kee Food Factory. The emphasis on 'authentic' Korean offerings puts pressure on established local cafes. This move will likely succeed in initial market penetration, given the current appetite for Korean culture. Competitors should closely monitor local sourcing initiatives. The specific thing to watch next is the first store's opening in Robinsons Galleria.

Minjun Park

Questions & Answers

Which other Southeast Asian countries are being targeted by Sim Woo for Hi Brunch expansion?

Sim Woo's company is considering franchise stores in Singapore, Indonesia, and Malaysia within Southeast Asia. These are part of a wider expansion plan that includes other international locations.

What is the planned timeline for the first Hi Brunch store opening in the Philippines?

The initial Hi Brunch store is scheduled to open in Robinsons Galleria in two to three months. This will be the brand's debut in the Philippine market, marking its first expansion outside Korea.

How will the food for Hi Brunch Philippines be prepared and sourced?

Most food will be prepared in Korea and shipped frozen to the Philippines for cooking. However, there is a plan to source some products locally if available, such as fresh Philippine mangoes for snow ice flakes.

What is the expansion strategy for Hi Brunch in the Philippines over the first year?

Within the first year, the master franchisee plans to open 25 outlets. Six of these 25 planned locations will be company-owned stores, with others likely being franchises.

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