Sulbing (South Korea) to Open 10 Stores in Manila
11 Dec 2017 - Korean dessert cafe franchise Sulbing said on Dec. 11 that it has signed a master franchise agreement with Philippines-based Beon Yeong to open outlets in the country.
“Beon Young was newly established for this contract,” Sulbing’s marketing official told The Investor. It will operate the franchisees, while Sulbing collects the royalties.
The dessert chain aims to open its first store in the Philippines during the first half of next year to run up to 10 outlets in Manila, then further expand into other cities.
Sulbing has been avidly tapping overseas markets. Earlier this year, it signed master franchise contracts with companies in Australia and Cambodia.
The Korean company had also sought to open up to 150 stores in Shanghai following its entrance in 2015, but the plans hit a major hurdle when a Chinese company began to illegally use Sulbing’s trademark. Consequently, its Chinese partner Shanghai Yabin Food Stuff Trade filed a suit, claiming it is unable to conduct business due to Sulbing’s poor management of trademark rights. The litigation is still ongoing, and the firm currently runs six stores in Shanghai.
In 2014, Sulbing’s sales had hit 20.2 billion won (US$22.06 million), but it fell to 9.6 billion won last year. The dessert franchise, which kicked off as a small downtown cafe in the port city of Busan in 2013, currently runs over 490 stores in Korea and 34 stores overseas.