On the 24th, Hanwha Galleria stated regarding the report about the sale of its burger brand "Five Guys" that it is not due to declining revenue.
"Five Guys" is a premium handmade burger brand brought to the country by Kim Dong-sun, the third son of Hanwha Group Chairman Kim Seung-yeon, who is also the Vice President of Hanwha Galleria's future division. FG Korea, which operates "Five Guys", is a 100% subsidiary of Hanwha Galleria.
On the same day, Hanwha Galleria released explanatory materials stating, "The competitiveness of Five Guys in Korea is at a globally top level." According to the materials, FG Korea's revenue last year was 46.5 billion won, and its operating profit was 3.4 billion won. The royalties paid to the U.S. headquarters are said to be at the average level of global franchises, according to Hanwha Galleria.
Hanwha Galleria noted, "In a situation where Five Guys has achieved results beyond expectations in two years, we are considering various plans, including strengthening the brand's competitiveness," and added, "The sale of the domestic business rights for Five Guys is also being discussed in this process. We are contemplating the sale of business rights from a perspective opposite to that of business expansion."
Hanwha Galleria emphasized that it will make decisions in a direction beneficial to the company and its shareholders. Hanwha Galleria said, "There was a judgment that generating profits through the sale of business rights could be a reasonable business strategy that aligns with the interests of the company and shareholders," and added, "If the sale proceeds, it is expected to contribute to strengthening the business portfolio through discovering new growth engines as well as enhancing the competitiveness of the department store sector, including the reconstruction of the luxury department store in Seoul."