The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Netflix apologizes for filming 'Single's Inferno 3' in marine sanctuary

  • 3

    Seoul city erroneously sends emergency alert after NK launch

  • 5

    In-N-Out Burger pop-up store attracts record crowd

  • 7

    Seoul City takes flak for bungled emergency text alert on NK's rocket launch

  • 9

    'BLACKPINK the Game' showcases group's unique charm

  • 11

    Chinese account for 54% of foreign-owned homes in Korea

  • 13

    INTERVIEWAsia expected to be key driver of ESG growth: Deloitte ESG Partner

  • 15

    Retailers adopt generative AI to offer personalized products, services

  • 17

    INTERVIEWLee Jun-hyuk unrecognizable in 'The Roundup: No Way Out'

  • 19

    Hamburger franchises having trouble in M&A market

  • 2

    BTS' J-Hope to work as drill instructor at Army boot camp: sources

  • 4

    BTS' RM named honorary ambassador of war-remains excavation agency

  • 6

    NK's attempt to launch 1st spy satellite fails after 'abnormal' flight: S. Korean military

  • 8

    Calls grow for female flight attendants to ditch skirts for pants

  • 10

    Rude cabbies in Seoul face stricter penalties

  • 12

    Committee calls for lowering requirements for foreigners to teach English online

  • 14

    EXO's Baekhyun, Xiumin and Chen in dispute with SM over contract issue

  • 16

    North Korea's spy satellite launch fails as rocket falls into sea

  • 18

    Korea, Japan resume dialogue on steel cooperation after 5-year hiatus

  • 20

    AMCHAM stresses S. Korea-US ties after NK fires 'space launch vehicle'

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Fri, June 2, 2023 | 23:41
Companies
BBQ's ESG issues feared to hamper overseas expansion
Posted : 2022-01-22 09:31
Updated : 2022-01-22 09:31
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Genesis BBQ Chairman Yoon Hong-geun gives a speech during the company's 25th anniversary, at one of his company buildings in Seoul, on Sept. 1, 2020. Courtesy of Genesis BBQ
Genesis BBQ Chairman Yoon Hong-geun gives a speech during the company's 25th anniversary, at one of his company buildings in Seoul, on Sept. 1, 2020. Courtesy of Genesis BBQ

By Kim Jae-heun

Genesis BBQ (BBQ), the country's third largest fried chicken restaurant franchise, aims to expand its business overseas this year, particularly in the United States. But the company has shown a disappointing performance in environmental, social and governance (ESG) management, hurting its brand image among socially-conscious consumers and driving away some potential business partners.

On Jan. 13, the Fair Trade Commission (FTC) released a list of "100 Good Franchises," which does not include BBQ, headed by Chairman Yoon Hong-geun. To be eligible for the designation, a franchise operator should have offered their franchisees a discount of more than 50 percent in royalty fees for at least two months during the pandemic or exempt the franchisees from paying all royalties for one month, in 2021. Or, they must have reduced the prices of essential supply items to franchisees by 30 percent for at least two months in 2021.

However, BBQ met none of these requirements.

"It would have been good if we had made it onto the list. But we have been practicing our own social contribution activities, such as donating 300 million won to Africa, in 2021," a BBQ official said.

The antitrust watchdog said that BBQ was not even eligible to apply for the evaluation because it was given a correction order for violating the Fair Transactions in Franchise Business Act last April.

In addition, BBQ was caught refusing to extend its contracts with some of its franchisees, who then organized a collective action against the headquarters. The FTC fined BBQ a 1.53-billion-won ($1.28 million) penalty for the malfeasance.

Genesis BBQ Chairman Yoon Hong-geun gives a speech during the company's 25th anniversary, at one of his company buildings in Seoul, on Sept. 1, 2020. Courtesy of Genesis BBQ
Customers wait for their orders at a BBQ restaurant on Honolulu, Hawaii, on Nov. 16, 2021. Courtesy of Genesis BBQ

Ongoing lawsuits the company has with rival BHC over contracts concerning chicken sauce, powder and other supplies, have also been dragging down BBQ's brand image, as it has continued to lose in these legal battles against the nation's second-largest fried chicken franchise.

Last November, the BBQ chairman was accused of defaming and obstructing BHC's business. BHC argued that Yoon was behind the scandal, in which he hired 10 influencers on social media and paid them to produce malicious reviews about BHC menu items.

Yoon was suspected of embezzling 10 billion won in company funds to pay his children's tuition fees in 2018. Prosecutors dropped the case, citing a lack of evidence.

"Marketing is another important tool when it comes to a fairly unknown company entering an overseas market. In particular, if a franchise operator wants to run restaurants under its direct management, the importance of the company's reputation becomes a greater factor," an industry official said.

Looking at the number of scandals and controversies that BBQ has gone through in the past few years, it is apparent that the franchise firm has done little, at least in Korea, the official said.

"If Yoon keeps getting into lawsuits, these can turn into an owner risk and affect the company. Governance is one of the three criteria of ESG management principles, and it is never good for BBQ to appear in reports tarnishing the franchise's brand image," an industry official said.

BBQ operates 97 restaurants in 18 states in the United States as of September of last year, including New York, New Jersey, California, Texas and Hawaii. The fried chicken franchise plans to open 50 more there this year.



Emailjhkim@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1In-N-Out Burger pop-up store attracts record crowd In-N-Out Burger pop-up store attracts record crowd
2Calls grow for female flight attendants to ditch skirts for pants Calls grow for female flight attendants to ditch skirts for pants
3Hamburger franchises having trouble in M&A market Hamburger franchises having trouble in M&A market
4Hallyu inspires Thailand to mull ways to export its culture Hallyu inspires Thailand to mull ways to export its culture
5Pyongyang seeks to portray rocket as science effort by admitting failure: experts Pyongyang seeks to portray rocket as science effort by admitting failure: experts
6Man gets five-year jail term for K-pop concert ticket fraud Man gets five-year jail term for K-pop concert ticket fraud
7Small business owners urge stricter rules on migrant workers switching jobs Small business owners urge stricter rules on migrant workers switching jobs
8Pandas at Everland become tourist magnet Pandas at Everland become tourist magnet
9Nexon case reignites controversy over high level of inheritance tax Nexon case reignites controversy over high level of inheritance tax
10[INTERVIEW] French photographer highlights amazing transformations of dog meat farm survivors INTERVIEWFrench photographer highlights amazing transformations of dog meat farm survivors
Top 5 Entertainment News
1From hardcore action to heart-throbbing romance, series to hit in June From hardcore action to heart-throbbing romance, series to hit in June
2'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season 'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season
3How artist Michael Rakowitz resurrects lost past of Iraq through food packaging How artist Michael Rakowitz resurrects lost past of Iraq through food packaging
4[INTERVIEW] Lee Jun-hyuk unrecognizable in 'The Roundup: No Way Out' INTERVIEWLee Jun-hyuk unrecognizable in 'The Roundup: No Way Out'
5'Elemental' director on bringing his personal story of immigration to cinema 'Elemental' director on bringing his personal story of immigration to cinema
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group