Despite the prolonged economic downturn, soaring materials and supplies prices, rising labor costs, and increasing public utility fees, the domestic burger and chicken brand Mom's Touch has shown steady growth.
According to Mom's Touch on the 26th, the average annual sales of franchises have steadily increased over the past five years since the management change at the end of 2019. In the second half of 2024, they reported a 12% sales growth compared to the first half. This year, the average monthly sales per franchise are recorded at 48 million won, a 20% increase compared to the same period last year.
The industry evaluates that the secret to Mom's Touch's growth is attributed to its evolution into a 'QSR (quick service restaurant) platform.' By allowing customers to experience burgers, chicken, and pizza all in one store, it has built product competitiveness and a strong fan base in each menu category.
Mom's Touch tapped into the beef burger market with the launch of the Grilled Beef Burger in 2022, subsequently promoting revenue diversification for previously non-core products such as chicken and pizza. As a result, as of December of last year, the average sales of 'platform franchise stores' that sell burgers, chicken, and pizza together were reported to be 45% higher than those of existing franchises.
To strengthen its position in the beef burger market, Mom's Touch made a bold investment by providing cooking equipment for beef burgers free of charge to over 400 franchises. The recently launched 'Edward Lee Beef Burger,' developed in collaboration with a star chef, has gained immense popularity. The total sales of beef burgers at the 320 stores launched in the first release on Feb. 18 increased by 540% compared to before the launch.
The chicken menu also showed remarkable growth. Since the launch of the 'Cyber Burger' in 2005, chicken, which had only been a sub-menu, has now established itself as a main menu item. Following the launch of the 'Spicy Boneless Chicken' in 2021, ongoing menu improvements have enhanced competitiveness with differentiated products such as 'Big Spicy Boneless Chicken' and 'Hot Cheese Big Spicy Boneless Chicken.' Consequently, the proportion of chicken sales, which was 10.5% in 2020, is expected to rise to 15% in 2024. Estimated chicken sales are expected to surpass 100 billion won for the first time since the brand's launch.
The 'shop-in-shop' strategy, which involves adding pizza menus to existing Mom's Touch locations, has also contributed to sales growth. By utilizing the sales time difference between burgers, which are in high demand during lunchtime and afternoon, and pizzas, which peak in the evening, they secured additional revenue without increasing fixed costs. Last year, Mom's Pizza opened 72 new franchises and is currently operating 149 pizza stores as of the end of 2024, with plans to expand to 250 by the end of this year.
Meanwhile, Mom's Touch achieved its highest performance to date by launching the 'Edward Lee Cyber Burger' and 'Edward Lee Beef Burger' in collaboration with popular chef Edward Lee. The average daily sales in the first week at selling stores increased by 61.3% compared to the same period last year, and this success has expanded the existing image of 'Mom's Touch = Chicken Burger' to 'beef burger specialty store.' Mom's Touch is providing comprehensive support to enhance franchise sales, covering all expenses related to the collaboration and offering pre-training and test materials free of charge at all franchises to ensure perfect quality.
Fueled by the increase in average sales per store, Mom's Touch is shifting its strategy from focusing on side roads and alley markets to entering key business districts. Starting with locations at Hakdong Station, Daechi Intersection, and Dosan-daero, they have opened direct-operated stores in major districts such as Gangnam, Dongdaemun DDP, and Myeongdong, now increasing to 13 stores. In the first half of this year, they plan to open additional direct-operated stores in Itaewon and Gwanghwamun and also launch a drive-thru store in Jeju.