As the bakery London Bagel Museum (corporate name LB) — once dubbed a "holy site for proof-shot photos" — faces criticism over allegations of an employee's death from overwork, calls are growing to hold founder Ryo (real name Lee Hyo-jung), who created the brand, accountable for the way the business is run. The founder who designed the brand's sensibility and worldview has remained silent since the incident.
According to the industry on the 19th, founder Ryo, who is currently serving as an advisor to LBM, switched her Instagram account to private right after the employee's death became a public issue last month. Most of the major YouTube videos in which advisor Ryo appeared and emphasized her brand philosophy were also set to private. Several negative comments have been posted on some content that remains.
Advisor Ryo, born in 1973, worked in the fashion industry for more than 20 years and ran shopping malls such as Love&hate. She then jumped into the F&B (food and beverage) business by opening cafes including Highwest, Layered, and Artist Bakery. London Bagel Museum opened its first store in Anguk-dong, Seoul, in 2021.
Kang Kwan-ku, CEO of LBM, said in a recent apology, "We temporarily requested that the social account be set to private as baseless false information, personal attacks and insults, and malicious posts about advisor Ryo, who has worked to protect the brand's identity and its members, were spreading indiscriminately online." Despite Kang's explanation, consumer sentiment toward advisor Ryo remains cold.
Some say Ryo's silence is amplifying the crisis at London Bagel Museum. The key figure who created the brand's sensibility and worldview has not issued an official position even after the employee's death.
One consumer said, "London Bagel Museum is a brand that grew on social media. Every step — from store interior and waiting lines to packaging and the reservation system — was content," adding, "Many customers spent money, even rushing for openings, not simply for the taste but because they felt, 'I am joining this brand.'"
At the end of last month, allegations emerged that a 26-year-old employee who had worked at London Bagel Museum for 14 months died after suffering from excessive workload. The employee is said to have died on July 16. London Bagel Museum opened its seventh store at Lotte Department Store in Incheon on July 12, and the employee reportedly died not long after the opening of the seventh store.
The incident occurred while JKL Partners, a domestic private equity fund (PEF) manager, was proceeding with the acquisition of LBM for 200 billion won. The acquisition was completed in Aug. Although the sale is done, critics say responsibility remains. Advisor Ryo served as creative director until the company was sold to JKL Partners, and has been serving as an advisor since Sep. However, she is said to hold no equity after the sale.
Right up until the employee overwork case became public, advisor Ryo took part in various events sharing her life philosophy and success stories. At one event, she said, "We were all born special." In Jun., she released an essay collection titled Ryo's thoughtless thoughts. It includes the passage, "If everyone's visuals are this different, how many different thoughts and tastes lie within? And how much have they been respected and passed on? All of us were born different and live in our own ways, being ourselves. I think it's so obvious, yet each one is beautiful and precious, as many as the number of individualities."
Consumers are angry that the "values" advisor Ryo has long talked about are so different from how London Bagel Museum has been run. London Bagel Museum told ChosunBiz, "We have not yet heard whether advisor Ryo will issue a statement."
In connection with this, the Ministry of Employment and Labor (MOEL) began a labor inspection on London Bagel Museum's Incheon store and its headquarters from the 29th of last month to get to the bottom of the case. During the inspection, surveys and interviews with employees confirmed some signs of legal violations, and the scope of the inspection was expanded. The current labor inspection targets total 18 business sites, including LBM headquarters; 10 London Bagel Museum locations (7 stores and 3 factories); 1 Artist Bakery location; 4 Layered locations; and 2 Highwest locations.
On the 17th, CEO Kang said, "We will bring in an HR expert in Dec. to overhaul our current labor contracts and overall HR system," adding, "We will improve our work record management process and establish a dedicated occupational safety and health management system, making company-wide, painstaking efforts to become a company where anyone wants to work."
Seo Yong-gu, a professor of business administration at Sookmyung Women's University, said, "London Bagel Museum looked glamorous on the surface through social media. In the past, problems with corporate culture stayed below the surface for a long time, but now everything is immediately exposed on social media," adding, "Brands without authenticity will struggle to endure for long in today's capitalist market."