SPC Group spins Shake Shack into separate entity in Korea

Shake Shack's Gangnam Daero branch in southern Seoul [SPC]

SPC Group has separated its successful Shake Shack burger franchise operations in Korea, establishing a distinct entity named Big Bite Company.

The physical division of the Shake Shack Korea business unit was approved during a temporary shareholders' meeting by SPC Paris Croissant held last month, according to the bakery conglomerate Monday. The newly formed Big Bite Company is now set to independently oversee the operations of Shake Shack in Korea.

"Following Shake Shack's success in the domestic market, the restructuring aims to fortify the brand's independent business capabilities, elevate expertise in the competitive food service industry, and enhance decision-making agility and operational efficiency to promptly adapt to market dynamics," an SPC official said. "There was also a similar request for independent operations made from Shake Shack's headquarters in the United States."

Under the restructuring, Paris Croissant will continue to manage a portfolio of 13 brands, excluding Shake Shack, such as Paris Baguette, Paris Croissant and Lagrillia.

Shake Shack was introduced to the Korean market in 2016 by SPC, where it presently operates 27 branches nationwide.

Despite fierce competition in Korea's burger market, Shake Shack has demonstrated resilience by consecutively opening new outlets. The inaugural Gangnam branch holds the record for the highest sales among all global Shake Shack locations.

Amid intensified rivalry, Shake Shack is gearing up to open its 28th store in Yeouido IFC Mall in western Seoul in December.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]