Smoothie King's reign in Korea coming to an end next year

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Smoothie King's reign in Korea coming to an end next year

Published: 24 Sep. 2024, 06:00

KIM JU-YEON
kim.juyeon2@joongang.co.kr

Smoothie King store in Korea [SHINSEGAE FOOD]

Beverage chain Smoothie King will leave Korea next year after seeing a drop in revenue year after year.

Smoothie King Korea’s operator, Shinsegae Food, told its franchisees that all operations for the brand will be halted by October 2025 through a notice sent out on Sept. 20.

The smoothie franchise’s departure comes 22 years after the first shop was launched in Myeong-dong, a shopping district in central Seoul, in 2003.

Shinsegae Food has been Smoothie King's domestic operator from October 2015. It recorded 8.2 billion won ($6.1 million) in revenue in 2021, which fell to 6.7 billion won in 2022 and 6.1 billion won last year.

The number of Smoothie King shops fell from 305 in 2021 to 169 last year. There are currently around 90 shops operating in Korea.

The franchise’s sales in Korea had once accounted for 18 percent of Smoothie King’s total sales worldwide, with three Korean stores ranking in the global top 10 as of 2012. Its impressive growth led to Smoothies Korea, its domestic unit at the time, taking over the brand’s U.S. headquarters in 2012 to expand its operations in Southeast Asia and the Middle East.

A spokesperson for Shinsegae Food said it decided to not renew its contract with the U.S. headquarters after failing to reach an agreement over management.

Shinsegae Food said it will offer supportive measures to current Smoothie King franchisees including an option to operate a different brand under the Shinsegae Food umbrella. Each shop owner will be consulted separately, the spokesperson added.

BY KIM JU-YEON, KIM EUN-BIN [kim.juyeon2@joongang.co.kr]