Executive Director Lee Moon-gyu, who oversees the chain business division at Tudari, met with ChosunBiz on the 19th and explained the background of Tudari's store renewal this way. Starting in 2021 with the opening of stores applying a new interior model, Tudari has been rolling out a policy to support the renewal of older outlets since 2023. Currently, of 1,300 stores nationwide, the new interior model has been applied to about 250.
Tudari is a brand that began when founder Chair Kim Jin-hak, who passed away in October, opened a small skewer shop near Jemulpo Station in Incheon in 1987. The headquarters' name is "Eewon." In 1989, Tudari established a dedicated factory in Seosan, South Chungcheong, creating a production and distribution system to supply ingredients of consistent quality to stores nationwide.
Lee said the plan is to shed the outdated pub image maintained for about 40 years and expand the category into a dining space where families can come together through renewals and menu expansion. Lee said, "We have long debated whether Tudari should fall under the pub or restaurant category," adding, "We are not denying the years we kept our pub image, but we want to break out of that mold, attract a broader customer base, and grow."
With the restaurant industry struggling amid an economic downturn, a differentiation strategy is needed. Tudari operates a research and development (R&D) team dedicated to menu development. Lee said, "Each year we develop new items and first sell them on a trial basis at the headquarters' first-floor store. If the response is good, we roll them out to each franchise," adding, "There was a time when we took pride in Tudari's menu leading trends. We are setting our standards to differentiate with proprietary items, as we did then, and pushing ahead with development."
By directly running a factory to produce products in-house, distributing them to big-box stores, and pushing into delivery, the company has also expanded its business into B2B (business-to-business) and B2C (business-to-consumer).
In December, comedian Lee Soo-ji was tapped as the advertising model as the company moved to raise brand awareness among customers in their 20s and 30s. Lee said, "Since Lee Soo-ji became our model, the age of prospective franchise owners interested in starting a business has been trending younger," adding, "We're indirectly feeling the ad effect from feedback such as 'I saw the Lee Soo-ji ad' and 'It feels friendly,' and that perceptions of Tudari have changed." The following is a Q&A.
— What is the core brand philosophy Tudari has maintained since its founding in 1987?
"What I want to emphasize is mutual growth. Without stores, there is no headquarters. We wanted to avoid franchises being controlled by corporations. We also refrained from advertising and promotions until now to save that expense and to encourage another visit to each store."
— What can Tudari offer prospective owners?
"The biggest strength is the trust the brand provides. These days, there are many trendy pubs, and many people choose related sectors. But if you ask whether those outlets can be run for five or 10 years or more, the answer would likely be that it's not easy. Tudari's average store operating life is longer than other franchises. If you want to operate a store for a long time, I'm confident there's nothing like Tudari. Running a business for just a year or two and taking profit through key money isn't necessarily wrong, but it wouldn't fit with Tudari."
— There is criticism that after founder Chair Kim Jin-hak passed away, you began promotions with an intent to sell, given you had not done advertising or PR before.
"It's the opposite. We began advertising and promotions to show our determination to carry on the corporate values and brand philosophy the founder kept for 40 years. We are not considering a sale at all."
— Competition is fierce in the restaurant franchise market. What are Tudari's points of differentiation?
"I think our strength is handling a wide range of items. We have a variety of Korean-, Japanese-, and Chinese-style anju, as well as dried snacks. Even when groups visit, the lineup ensures each person can find at least one thing they want to eat."
— What are the advantages of running your own manufacturing plant?
"Because we manufacture directly at the factory and handle distribution, even small stores can sell 50 items. We deliver directly to each store every two days, which makes inventory management easier, and because we pack in one-pack portions, cooking is simple. It also makes it easier to expand into the B2B space, such as supplying to other corporations."
— Do you have plans related to delivery?
"Tudari also took a big hit during the COVID-19 pandemic. To survive, we first introduced delivery at that time and tried various things, such as serving lunch in stores located in office districts. Delivery has seen some success, and we aim to scale up delivery operations next year and the year after. We won't deliver the entire menu; we will select items specialized for delivery. We plan to choose items that are difficult for existing late-night spots and chicken shops to deliver, to create differentiation."
— You have succeeded in expanding overseas to countries such as China and Thailand. Are there plans to enter other countries?
"We have signed a master franchise agreement in Canada and aim to open six stores in Vancouver within three years. After hitting milestones in Vancouver, we plan to first enter Toronto and then target the United States. We also aim to expand into retail by producing ingredients locally overseas. Through business trips, we are identifying products that can be produced locally, and a realistic goal is to introduce more Tudari products to overseas markets."
— How do you want consumers to remember Tudari as a brand?
"When we ask customers who come to Tudari what they like about it, many say it's an unpretentious, casual space where they can meet friends. We want to keep that message. Even at stores with the new interior, the tone has become much brighter, but that doesn't mean Tudari becomes a restaurant. We will keep menu prices as much as possible to maintain the image of a comfortable space."