Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Bibigo leaves Southeast Asia
Seen above is an announcement of closure of Bibigo restaurant in Jakarta, Indonesia. / Courtesy of Bibigo Indonesia
By Park Jae-hyuk
By Park Jae-hyuk
CJ Foodville has pulled all of its Bibigo restaurants out of Southeast Asian markets.
According to the food services affiliate of CJ Group, Bibigo’s Pacific Place store in Jakarta, Indonesia, went out of business this week.
That was the bibimbap-themed restaurant franchise’s last outlet in Southeast Asia.
After opening its first Bibigo restaurant in Singapore in 2010, CJ Foodville opened three additional stores there.
The company began running another Bibigo restaurant in Indonesia in 2013.
Back then, CJ Foodville declared it would open 400 stores in Southeast Asia by 2015, taking advantage of the region’s Korean wave fever and rapid growths in populations and economies.
To satisfy tastes of consumers, the store in Indonesia used sweet and spicy sauces, offering dishes made with beef and chicken.
Despite such efforts, the Indonesian branch has performed poorly over the past few years.
According to CJ Foodville’s income statement, PT CJ Foodville Indonesia posted 499 million won ($446,000) and 733 million won in operating losses in 2016 and 2015, respectively.
CJ Foodville also suffered losses in the Singaporean market where it closed its last outlet there last year.
Its Singaporean subsidiary posted 383 million won and 2.71 billion won in losses in 2016 and 2015, respectively.
At the time, the company cited high overheads, rental costs and the Singaporean Ministry of Manpower’s rules on hiring local staff as reasons for its withdrawal from the test bed for Southeast Asian expansion.
Rather than expanding Bibigo’s presence in the Southeast Asian market, CJ Foodville said it will focus on opening more Bibigo restaurants in the United States and China.
It initially aimed to open 1,000 Bibigo restaurants worldwide by 2015, but it has 17 stores in China, eight in the U.S. and one in the United Kingdom.
Two remaining Bibigo restaurants in Japan closed last year.
CJ Foodville will continue to run its Tous Les Jours bakeries in Indonesia, because the bakery franchise is still expanding its presence in the region.
CJ Group is expected to promote Bibigo as a ready-to-cook product brand, instead of restaurant franchise.
For example, CJ CheilJedang, which participated in the CJ Cup @ Nine Bridges as an official sponsor, introduced Bibigo as a home meal replacement (HMR) product brand, during the first PGA tour event in Korea last week.