SEOUL, KOREA - CJ Foodville will fold its "Seafood Ocean" franchise due to the waning popularity of seafood as well as the rising tide of regulation on large corporation-run franchises. According to food service industry sources on December 3, the CJ Group company has decided to stay open its Seafood Ocean restaurants until the year's end.

 

The first Seafood Ocean restaurant opened in January 2006 and there are only four locations, including the ones in Nokbun, Daelim, Guwol, and Cheonan, left after peaking 15 a few years ago.

 

A CJ Foodville official said, "Food service franchises can make profit only if they can take advantage of scale economies from volume purchase of food ingredients. Seafood Ocean restaurants have suffered from lackluster business after the incident involving imports of radioactive-tainted fish and seafood from Japan. To add insult to injury, the government restricted the number of franchises through a new regulation in the name of protecting small operators. That's why we decided to close all Seafood Ocean locations and focus instead on other restaurant brands such as VIPS and Bibigo.