[THE INVESTOR] Ahead of the opening of Shake Shack's first outlet in South Korea on July 22, its Korean licensee SPC Group vowed to make the brand available locally at the same quality and pricing scheme it boasts abroad.
Shake Shack and SPC Group on July 19 shared their collective vision and agenda for the burger brand’s business in Korea during a press conference at Shake Shack’s first store near Gangnam Station in southern Seoul.
“In launching Shake Shack in Korea for the first time, we will introduce the concept of ‘fine casual’ dining to local consumers,” SPC’s executive managing director Hur Hee-soo told reporters.
Fine casual dining refers to an emerging trend that brings together the high-quality ingredients offered by upscale restaurants and the benefits offered by fast food such as convenience and low pricing.
SPC, best known for its local bakery chain Paris Baguette, hopes that the success of Shake Shack in Korea will lend a hand in driving up the sales of its dining business to more than 200 billion won ($176 million) by 2025, Hur said.
Shake Shack will offer its signature items in Korea at the same prices as that of its main store in the U.S. and elsewhere. It also plans to source its main ingredients from its original vendors to create the same taste and dining experience for customers in Korea.
For instance, the brand’s signature Shack Burger will be locally priced at 6,900 won, which is roughly equivalent to the burger’s original price in the U.S. of $5.29, plus an 8.8 percent sales tax (New York-based), SPC said.
Meanwhile, the burger brand will not be offering set menus in Korea, in line with its worldwide policy and delivery services will also be unavailable in Korea, SPC said. It may, however, implement a mobile preorder and pickup service in the future under SPC’s Happy Order service.
SPC plans to open a second Shake Shack branch in Seoul within this year, though the exact location has yet to be determined, the company said.
By Sohn Ji-young / The Korea Herald ()
