Where is the 'Korean Store' in the Heart of Japan Visited by 700,000 People? Will it Write the History of 'K-Fast Food'? [fnThisPerson]

[Financial News] "Mom's Touch has opened large direct-operated stores such as Gangnam-daero and Seolleung Station in Seoul last year to enhance the cost-effectiveness image and brand awareness, and will continue to expand drive-thru (DT) and overseas stores in the future" 
Lee Kyung-min, Head of New Growth Division at Mom's Touch, whom we met at the Mom's Touch & Company headquarters in Jung-gu, Seoul, said on the 3rd, "To implement a 'visibility' strategy that exposes Mom's Touch to customers more frequently, the headquarters has increased the number of direct-operated stores to 14."
Mom's Touch is well known as a 'cost-effective brand' favored by students and young people. Currently, there are 1,460 Mom's Touch stores, about three times more than McDonald's, but there are relatively few large direct-operated stores. Therefore, the headquarters is expanding direct-operated stores in key commercial areas or tourist landmarks to enhance the brand image for the second growth. Itaewon, a K-culture landmark, and Gwanghwamun, targeting office workers and foreigners, are representative examples. In addition, they are pursuing brand image enhancement and co-prosperity with franchisees by developing collaborative menus with Edward Lee, the runner-up chef of Black and White Chef.
The division head said, "In the case of the Edward Lee collaboration, it has the effect of enhancing brand image as well as increasing franchisee sales through premium menu development," and "usually, when large-scale advertising marketing is conducted, the headquarters and franchisees share the cost, but for the Edward Lee collaboration, the headquarters bore the entire advertising cost."
The secret of Mom's Touch's cost-effectiveness lies in 'cost' and 'advertising cost reduction'. While competing brands spend 5-7% of sales on advertising, Mom's Touch has a low advertising cost ratio of 1-2%. They focus on the 'product' itself among the 4P strategies of marketing and provide a reasonable 'price'.
Along with direct-operated stores, the expansion of drive-thru stores is also a new growth engine for Mom's Touch. Starting with the Seoksu Station DT store in Anyang in October last year, they opened the Oraido DT store in Jeju. They plan to open the fourth DT store in Jeonju and Yongin within the year. The division head explained, "To maintain quality competitiveness and satisfy DT customers with fast speed, we are operating by systematizing cooking processes such as conveyor belt systems and preparing products in advance through sales prediction data." 
Based on its success in the domestic market, Mom's Touch is actively expanding overseas, including Japan. During the three-week operation of the 'Mom's Touch Tokyo' pop-up store in Tokyo in October 2023, 33,000 people visited. The division head said, "There was a waiting time of more than two hours every day during the pop-up period, and six out of seven private broadcasting stations in Japan came to cover it," and "96% of visitors expressed their intention to revisit, and 93% said they were satisfied."
As a result, Mom's Touch opened its first direct-operated store, 'Shibuya Mom's Touch', in Japan. With a generous composition at a price 10-30% cheaper than the average lunch price in Shibuya, it recorded 700,000 cumulative visitors and 5 billion won in sales over a year. In September, they plan to open the second direct-operated store 'Harajuku Mom's Touch' and aim to open about 10 stores in areas like Shimokitazawa and Akis within the year.
Mongolia and Laos are expanding their presence as a global brand through master franchise (MF) contracts with local companies. Starting with the 'Bayangol' store in Ulaanbaatar, Mongolia, in September 2023, they are operating 12 stores as of the first half of this year. The division head said, "We plan to expand into Uzbekistan, Indonesia, Kazakhstan, etc., in the form of MF in the future."
hwlee@fnnews.com Hwanju Lee, Reporter