SEOUL, KOREA - The government regulation to assist independent bakeries by discouraging large corporation-affiliated franchises in opening new stores has not had intended effects but ended up boosting the number of bakeries owned and operated by mid-sized corporations.

 

According to industry sources on July 15, the number of patisseries run by large corporations has remained the same during the first half while that for mid-sized franchises has increased noticeably. The total number of the Paris Baguette franchise of SPC Group was 3,240 as of the end of June, up only 28 from 3,212 at the end of last year. In the same way, Tous Les Jours owned by CJ Foodville has increased its store locations by only eight to 1,288 from 1,280 during the same period.

 

Meanwhile, a mid-sized franchise like EatBread, one of whose shareholders is Jung Joon-ho, an actor, could increase its store numbers more than 70 within a year of operation. Others like Easy Buy could almost double its location numbers to 143 from 80 last year.

 

According to bakery industry sources, the total number of bakeries as of the end of June was 13,051. Of these, mom-and-pop operations account for 55.5 percent (7,219) while franchises take up a 40.4-percent share (5,253).