[비즈한국] The pace of expansion for Theborn Korea has slowed noticeably. Following various controversies last year, the number of new store openings has dropped significantly, and major brands are seeing a continued decline in store counts. It appears the trend of store closures is persisting, with no clear signs of a recovery in the second half of the year.
75 direct and franchise stores closed in the first half... downward trend continues into the second half
According to Theborn Korea's regulatory filings, the number of domestic direct and franchise stores across its 25 dining brands stood at 2,993 as of the end of June. This marks a decrease of 75 stores in just six months from the 3,068 reported at the end of 2025. Looking at franchises alone, the number fell by 72, from 3,056 to 2,984, during the same period.
Theborn Korea had expanded its franchise business to reach 3,080 stores by 2024. However, that number dipped slightly to 3,068 last year, and further dropped to 2,993 in the first half of this year, breaking the 3,000-store threshold.
The trend of shrinking store numbers seems to be continuing into the second half. Bizhankook’s tally of stores listed on each of Theborn Korea’s brand websites shows a total of 2,930 stores as of September 29. This is 63 fewer than the number of direct and franchise stores reported by Theborn Korea at the end of June. However, Theborn Korea explained, "The number of stores posted on our websites does not always reflect real-time figures."
Paik's Boy Pizza, which Theborn Korea had been aggressively expanding, has seen a noticeable decline in store numbers recently. Launched in 2021 as a pizza takeout and delivery brand, Paik's Boy Pizza grew rapidly, surpassing 200 stores within just a year and a half after opening its first franchise in May 2022. It attracted attention as the fastest-growing brand in Theborn Korea’s portfolio to reach the 200-store milestone.
Paik's Boy Pizza recorded 227 direct and franchise stores last year, but that number fell to 205 by the end of June this year. Its only direct-managed store, which opened in 2021, also closed in the first half of this year. Currently, the number of Paik's Boy Pizza franchise stores listed on its website is 194.
Rolling Pasta is also seeing a decline in store counts. Launched in 2018, Rolling Pasta expanded by promoting affordable pasta dishes. However, the number of stores, which stood at 130 last year, dropped to 121 by the end of June this year. There are currently 112 stores listed on its website.
A similar trend is visible in long-standing brands like Saemaul Sikdang and Hong Kong Banjum. The number of Saemaul Sikdang stores decreased from 68 last year to 59 by the end of June, with 52 stores currently listed on its website. Hong Kong Banjum also saw a decrease from 277 to 264 over the same period, with 257 stores currently listed on the website.
Among Theborn Korea's dining brands, Paik's Coffee is the only one to have increased its store count since the end of last year. Paik's Coffee grew from 1,821 stores (including direct-managed ones) last year to 1,841 by the end of June this year. Although the current count of 1,837 on its website is a slight decrease of 4 from the first half, it is still 16 more than last year's figure.
A Theborn Korea official explained, "As the dining industry recession prolongs, new openings for dining brands, excluding low-cost coffee, are generally declining. Brands operated by Theborn Korea are following the same trend."
The slowdown in new openings seems to have contributed to the decline in Theborn Korea's store count. In 2024, despite 176 franchise stores closing, there were 457 new openings, resulting in a net increase of 281 stores. In contrast, during the first half of this year, 133 franchise stores closed while only 61 new ones opened, leading to a net decrease of 72 stores.
Store expansion through new brands has also come to a halt. Theborn Korea launched brands in quick succession—Quickban, Paik's Donkatsu/Bol-katsu, Nakwon Gopchang, and Paik's Boy Pizza in 2021, Go-To-Wok in 2022, and Hong Kong Bun-sik in 2023—but has not launched any new dining brands since.
A source in the dining industry commented, "With various controversies surrounding Theborn Korea last year, it wouldn't have been easy for the company to introduce new brands or aggressively expand new businesses. It seems the situation forced them to prioritize managing existing brands and franchises over launching new ones or expanding their footprint."
Theborn Korea went through a difficult time last year following a series of controversies involving the price and quality of 'Paik-Ham,' issues with country-of-origin labeling, and food hygiene concerns at festivals. During this period, Baek Jong-won, the CEO of Theborn Korea, halted his broadcasting activities, and some franchisees voiced concerns over declining sales.
Theborn Korea maintains that it is focusing more on strengthening the competitiveness of existing brands rather than expanding into new ones. An official from Theborn Korea stated, "Rather than increasing new brands, we are prioritizing enhancing the competitiveness of existing brands and upgrading them to match market changes. We are reviewing new brand opportunities only based on business models that have proven sustainability through sufficient testing."
As store expansion has slowed, revenue from the franchise business has also seen a decline. Theborn Korea's franchise revenue fell by approximately 19%, from 397.1 billion KRW in 2024 to 323.1 billion KRW in 2025. Since franchise revenue accounts for about 90% of total revenue, total consolidated revenue also dropped by approximately 22% during the same period, from 464.2 billion KRW to 361.2 billion KRW. However, the scope of operating losses has narrowed this year, with an operating loss of 9.8 billion KRW in the first half of this year, down from 16.3 billion KRW in the same period last year.
Theborn Korea has recently been turning its eyes toward international markets. It has begun expanding its overseas franchise business by opening Paik's Coffee stores in Japan and Taiwan, and is scaling up its B2B sauce business in Canada.
A Theborn Korea official remarked, "We are continuously expanding our overseas business to establish a virtuous cycle where the achievements made abroad are reinvested into strengthening the competitiveness of our domestic franchises and brands. Recently, CEO Baek Jong-won has been directly involved in various business activities in overseas markets, which is helping to concretize business opportunities."