Rimini runs almost entirely as company-owned stores; Asia Moon down to single franchise location
Flagship brand Ashley Queens targets annual sales of 800 billion won ($523 million), 150 stores nationwide
Eland Eats is overhauling its restaurant brand lineup, pulling back on franchise operations for its Italian dining brand Rimini and Asian dining brand Asia Moon as growth at both concepts has slowed, while redirecting resources toward its flagship brand, Ashley Queens.
According to industry sources Friday, Eland Eats voluntarily withdrew its franchise disclosure document registrations for Rimini and Asia Moon last month. Registering such a document is a mandatory step for operating a franchise business in South Korea. Canceling the registration in effect means shutting down franchise operations for those brands.
Of Rimini's roughly 30 stores, all but one are now company-operated. Asia Moon is down to a single franchised location. Neither brand had shown signs of opening new franchise outlets or expanding recently, leaving little practical reason to maintain the franchise structure. "Neither brand has plans to add franchise locations, so we did not proceed with registering or renewing the disclosure documents," an Eland Eats official said.
Beyond Asia Moon and Rimini, Eland Eats operates a broad portfolio of dining and cafe brands, including Ashley Queens, Jayeonbyeolgok, Roun Shabu Shabu, Pizza Mall, Teru, Bangung, The Cafe, Prangerie, Steakus, Rugo, Percheno and Deli by Ashley.
The company is not exiting the franchise model entirely. Eland Eats continues to run franchise operations across several dining and cafe brands — Bangung, Teru, Asia Moon, Steakus and Huwon on the dining side, and The Cafe and Rugo among its cafe concepts.
Last year, Eland Eats explored selling off underperforming non-core brands, appointing Samsung KPMG as lead adviser and putting six dining brands and three cafe brands up for potential sale.
An Eland Eats official said the divestiture plan is no longer a top priority. "It is not something we are actively pursuing at a high level of urgency," the official said, adding that brand operations and support for existing franchisees are continuing as normal. "We plan to assess the most appropriate direction for each brand by comprehensively reviewing market conditions, brand competitiveness and operational efficiency," the official added.
Eland Eats is pressing ahead with aggressive expansion centered on its buffet brand Ashley Queens. The brand's annual sales last year are estimated at around 500 billion won, and the company has grown its store count from 59 in 2022 to 120 locations. Ashley Queens has set targets of 800 billion won ($523 million) in annual sales and more than 150 stores nationwide this year.
korean@heraldcorp.com
