Paik's Dabang accelerates global push with Taiwan franchise deal
Theborn Korea CEO Paik Jong-won, center, poses with representatives of a Taiwanese company that signed a master franchise deal with the Korean firm to operate Paik's Dabang in Taiwan, Aug. 29. Courtesy of Theborn Korea
Theborn Korea is stepping up the overseas expansion of its coffee brand Paik’s Dabang, signing a 10-year master franchise agreement to enter Taiwan after opening its first stores in Japan earlier this year.
The company said Tuesday that it signed the agreement on Aug. 29 with a local partner in Taiwan at a ceremony attended by CEO Paik Jong-won and representatives of the Taiwanese company. Theborn Korea declined to identify the partner, citing contractual conditions.
Under the agreement, the Taiwanese partner plans to open 10 outlets in the first year and expand the network to more than 150 stores by the fifth year.
Theborn Korea said it is conducting market research in Taiwan to develop an operating strategy, with the first store targeted to open in the first half of next year.
The master franchise agreement follows Paik’s Dabang’s entry into Japan, where the brand opened two directly operated stores in Tokyo’s Shimbashi and Kanda districts in August.
The company said the Japanese outlets have sold an average of more than 1,000 drinks per weekday, attributing the strong performance to store operations tailored to local market conditions.
Paik's Dabang in Tokyo's Kanda district bustles with visitors, Aug. 18. Courtesy of Theborn Korea
Theborn Korea said it plans to use its experience in Taiwan and Japan as a springboard for further overseas expansion of the coffee brand. The company is preparing to enter major markets including China, the United States and India next year, while also considering future expansion into Cambodia and Turkey.
Paik has been directly involved in the company’s overseas business initiatives. In Canada, he recently worked with a local company on cooperation involving the launch of new food-service brands and expanded distribution of Theborn Korea’s all-purpose TBK cooking sauces. In the United States, the company is pursuing local production of TBK sauces.
“Paik’s Dabang will leverage its store operation know-how in Korea and the brand’s competitive menu to pursue overseas expansion tailored to the local market environment and consumer characteristics of each country,” an official from Theborn Korea said.
Paik’s Dabang, rebranded in July from Paik’s Coffee, launched in Korea in 2006 and has grown into one of the country’s largest budget coffee franchise brands.