Pizza franchises struggle to stay afloat
By Kwak Yeon-sooMajor pizza franchises here have been grappling with worsening profitability as more and more Koreans look for cheaper alternatives, according to industry analysts Monday.The increasing wellbeing trend and soaring delivery costs, as a result of minimum wage hikes and higher raw materials prices, have discouraged many consumers from ordering pizza from large franchises, they said. According to audit reports released by the Financial Supervisory Service, MP Group, which owns Korea's pizza franchise Mr. Pizza, saw its sales plunge 17 percent to 119.8 billion won ($101 million) in 2018 from the previous year. The company has been losing money for the last four years, recording a 380 million won operating loss last year.A series of controversies involving former chairman Jung Woo-hyun, who was jailed for physically assaulting a company security guard, precipitated a downward spiral. The incident adversely impacted the brand and the number of stores dropped from 411 in 2015 to 277 in 2018. The company's management troubles mounted and franchises expressed frustration.MP Gro
