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Theborn Korea brands see sales rebound after damage control discount campaign

Published: 16 Jun. 2025, 15:32

TheBorn Korea CEO Paik Jong-won attends a press conference at Space Share Gangnam in Seocho District, southern Seoul on March 28. [YONHAP]

Franchisees of Theborn Korea brands, helmed by celebrity CEO Paik Jong-won, are seeing a sharp rebound in sales after the headquarters rolled out a sweeping discount campaign aimed at damage control and franchisee support.

The turnaround follows months of slumping sales tied to a storm of controversies — from alleged price-gouging to hygiene violations and extortion claims — that battered the reputations of both Paik and his brand empire.

The number of customers visiting participating brand stores rose more than 65 percent year-on-year during the discount event held from May 13 to 31, according to Theborn Korea on Monday. Customer visits from June 1 to 10 also increased by over 57 percent compared to the same period last year.

Theborn Korea previously said it would inject 30 billion won ($2.2 million) into the discount campaign. This includes not only promotional costs but also reimbursements to franchisees — if a 1,700-won Americano is sold at the discounted price of 500 won, the headquarters compensates the store 1,200 won.

At one Paik’s Coffee branch in Seoul, where the “1,000 won latte” and “500 won Americano” deals were in effect, the number of orders jumped more than tenfold from June 10 to 12, when the 500-won Americano promotion was active, according to Theborn Korea.

At a Chinese food-themed Hong Kong Banjum location in Gimpo, average daily sales of jjajangmyeon (black bean noodles) surged from 100 to 800 bowls during the “3,900 won jjajangmyeon” event.

A Hong Kong Banjeom restaurant, operated by celebrity chef Paik Jong-won's company Theborn Korea, offers discounts on May 13 in Seoul. [YONHAP]

Previously, Theborn Korea’s franchisees suffered a slump in sales following a series of issues that began in February, including controversies over product quality, errors in origin labeling and hygiene concerns at festival booths.

Sales data obtained by liberal Democratic Party (DP) lawmaker Oh Sae-hee from Korea’s seven major credit card companies showed that revenue at key franchises like Paik’s Coffee and Hong Kong Banjum fell significantly year-on-year in April.

By brand, Paik’s Coffee saw sales drop by as much as 12.8 percent, Hong Kong Banjum by up to 18.3 percent, Hanshin Pocha by 13.8 percent and Yeokjeon Udon by 19 percent. April marked the peak of public backlash, following broadcast reports alleging Paik’s abusive behavior and claims that Theborn Korea had violated food hygiene laws at a local festival.

In early May, Paik announced he would suspend all broadcasting activities to focus on management and unveiled the HQ-funded discount campaign as a key win-win measure for franchisees.

While franchisees have experienced a dramatic rebound due to the headquarters’ self-rescue efforts, many worry that the momentum may falter once the campaign ends. “The headquarters-led discount initiative is a welcome move, but it should not end as a one-off measure,” said Oh.

“We are considering making the discount campaign a regular program,” said Paik. “Beyond discount promotions, we are also preparing other support measures, such as developing new menu items to encourage return visits.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM JI-HYE [[email protected]]