Site Search:
 
Speak Korean Now!
Teach English Abroad and Get Paid to see the World!
Korean Job Discussion Forums Forum Index Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Korean government trying to crush chain restaurants
Goto page 1, 2, 3, 4  Next
 
Post new topic   Reply to topic    Korean Job Discussion Forums Forum Index -> General Discussion Forum
View previous topic :: View next topic  
Author Message
dairyairy



Joined: 17 May 2012
Location: South Korea

PostPosted: Mon May 27, 2013 12:39 pm    Post subject: Korean government trying to crush chain restaurants Reply with quote

First they targeted large stores like EMart, LotteMart, Homeplus, and Costco that did nothing wrong other than deliver quality products and services to customers. Now, they've declared war on restaurant chains that have done nothing wrong other than be popular, especially with younger people.
Don't worry, you'll be able to get plenty of recycled leftovers and beef from Australia that is resold as Korean. You know, all the typical service available in small Korean restaurants.

http://koreajoongangdaily.joinsmsn.com/news/article/article.aspx?aid=2972214&cloc=joongangdaily|home|top

Quote:
Conglomerates operating restaurant chains will be able to open new stores within only 100 meters (328 feet) of subway stations, the National Commission for Corporate Partnership (NCCP) decided yesterday.

In nonmetropolitan areas, they can locate within 200 meters of stations

The decision ends three months of discussions regarding regulations on large corporations and mid-sized restaurant operators.

In February, the NCCP designated 14 service industries - including bakeries and restaurants, and two manufacturing businesses - as areas reserved for small enterprises.

The NCCP held its 23rd committee meeting at Seoul Palace Hotel in Banpo-dong, southern Seoul, yesterday and confirmed details defining the restaurant industry and identifying sectors reserved for small enterprises.

Large corporations subject to the new regulation are CJ Foodville, CJ N City, Lotteria, Shinsegae Food, Hyundai Green Food, Hanwha Hotel and Resort, SK Networks, Cheil Industries, Daesung Industrial Corporation, E-Land Park and Everland.

Affected midsize businesses include Amoje, Samlip General Food, Ourhome, Maeil Dairies, Nongshim, Dongwon, Namyang Dairies, SPC, Daesang HS, MPK Group and Orion.

Regulations for franchise restaurants were also tightened so they cannot open new branches within 150 meters of existing small restaurants with annual sales of 48 million won ($42,768) or less.

Large corporations and franchise companies blasted the regulation saying that the excessive rules are killing franchise stores.

�Under such regulations, it�s not too much to say that opening a new store is almost impossible,� said a spokesman for large corporation running a restaurant chain, who declined to be named.

Members of the Korea Franchise Association held demonstrations against the regulation in front of the Palace Hotel.

Some protesters said the NCCP�s measure will only benefit large foreign restaurants and food companies, which are not bound by the regulations.

�Rather than growing local brands to compete with foreign restaurant giants, the NCCP is trying to eradicate the local restaurant businesses,� said a franchise owner.

When the regulations take effect, E-Land Group�s Ashley, Outback Steak Korea�s Outback Steak House, CJ Group�s VIPS, Lotte Group�s TGI Friday�s will be directly hit.

�There were diverse and complex interests of different parties intertwined to establish criteria for defining restaurant industry,� said Yoo Jang-hee, chairman of the NCCP.

Meanwhile, eight conglomerates including Homeplus, CJ O Shopping, and STX Offshore and Shipbuilding received failing grades in terms of shared growth with partner companies.

The NCCP released the shared growth index evaluation of 73 conglomerates.

Back to top
View user's profile Send private message
atwood



Joined: 26 Dec 2009

PostPosted: Mon May 27, 2013 3:50 pm    Post subject: Reply with quote

I fully support the policy of supporting small and mid-sized businesses, but this is going about that bassackwards. Help small businesses develop new products, give such business owners training, make affordable financing available, etc.

Small companies can compete--look at Kuksu Namu, a new chain that opens small restaurants that offer quality food in clean settings.
Back to top
View user's profile Send private message
War Eagle



Joined: 15 Feb 2009

PostPosted: Mon May 27, 2013 3:52 pm    Post subject: Reply with quote

The way I read this is that this is being done to lessen the control of the conglomerates in Korea over an industry that is being deemed more suitable to small business.

I am all for regulations that restrict the growth of these guys. If not in place, they will soon control Korea even more so than they do today. A government being controlled by big business, instead of the other way around, is never a good thing.
Back to top
View user's profile Send private message
FDNY



Joined: 27 Sep 2010

PostPosted: Mon May 27, 2013 4:21 pm    Post subject: Reply with quote

THESE NEW LAWS ARE CRAP

The only people who should be deciding what is what in these circumstances are consumers. If you don't like it, then go to North Korea comrade.
Back to top
View user's profile Send private message
War Eagle



Joined: 15 Feb 2009

PostPosted: Mon May 27, 2013 4:38 pm    Post subject: Reply with quote

FDNY wrote:
THESE NEW LAWS ARE CRAP

The only people who should be deciding what is what in these circumstances are consumers. If you don't like it, then go to North Korea comrade.


Funny. What you are suggesting is akin to an abolition of antitrust laws. Then YOU, my friend, should head to North Korea, where it remains one of the only countries without such regulations.

Food for thought.
Back to top
View user's profile Send private message
atwood



Joined: 26 Dec 2009

PostPosted: Mon May 27, 2013 4:56 pm    Post subject: Reply with quote

War Eagle wrote:
The way I read this is that this is being done to lessen the control of the conglomerates in Korea over an industry that is being deemed more suitable to small business.

I am all for regulations that restrict the growth of these guys. If not in place, they will soon control Korea even more so than they do today. A government being controlled by big business, instead of the other way around, is never a good thing.

Why restrict anyone's growth?

You want to hurt the chaebols, that's easy. Make it easier for foreign companies to do business in Korea.

Why are the small businesses covered under this regulation hurting? Because they provide a substandard product for which they often overcharge. Nobody wants to eat Chinese kimchi in a dirty restaurant. Nobody wants the same old tired, tasteless baked goods local bakeries serve up.
Back to top
View user's profile Send private message
War Eagle



Joined: 15 Feb 2009

PostPosted: Mon May 27, 2013 5:21 pm    Post subject: Reply with quote

atwood wrote:
War Eagle wrote:
The way I read this is that this is being done to lessen the control of the conglomerates in Korea over an industry that is being deemed more suitable to small business.

I am all for regulations that restrict the growth of these guys. If not in place, they will soon control Korea even more so than they do today. A government being controlled by big business, instead of the other way around, is never a good thing.

Why restrict anyone's growth?

You want to hurt the chaebols, that's easy. Make it easier for foreign companies to do business in Korea.

Why are the small businesses covered under this regulation hurting? Because they provide a substandard product for which they often overcharge. Nobody wants to eat Chinese kimchi in a dirty restaurant. Nobody wants the same old tired, tasteless baked goods local bakeries serve up.


I agree with you to a point. I certainly want quality food and service, as we all do. However, big businesses have many advantages over smaller ones to a point where they can virtually run them out of business: lower profit margins to nil to gain market share, dominate the market, then price gouge or price fix to send margins through the roof. In the end, this option is less desirable for the consumer.

While there may be better ways to go about achieving their goal of increased competition in the restaurant industry, I have to commend them for having the right mindset. Ultimately increased competition will lead to better quality and service.


Last edited by War Eagle on Mon May 27, 2013 5:23 pm; edited 1 time in total
Back to top
View user's profile Send private message
nicwr2002



Joined: 17 Aug 2011

PostPosted: Mon May 27, 2013 5:21 pm    Post subject: Reply with quote

I like this actually. I'm tired of seeing a Hodudalk chicken place every block. My favorite family run samgyeopsal place was bought out by some chain restaurant as well. I guess that was the owner's fault who knows. I remember my father saying that when he would travel down the interstate, in America, you could always find those unique restaurants in each city. However, nowadays there's a McDonald's, Wendy's or some other chain store.

In another thread people were complaining about how owner's of buildings and property won't open anything risky and instead open a coffee shop. Maybe this will get people to open up a variety of places instead of that coffee shop.
Back to top
View user's profile Send private message
le-paul



Joined: 07 Apr 2009
Location: dans la chambre

PostPosted: Mon May 27, 2013 5:47 pm    Post subject: Reply with quote

i wish this had been done in england 20/30years back to preserve some of the spirit of small towns and villages. i dont remember last time i saw a toy shop that wasnt called argos..
Back to top
View user's profile Send private message
Airborne9



Joined: 01 Jun 2010

PostPosted: Mon May 27, 2013 6:05 pm    Post subject: Reply with quote

le-paul wrote:
i wish this had been done in england 20/30years back to preserve some of the spirit of small towns and villages. i dont remember last time i saw a toy shop that wasnt called argos..


Second that.

People really high and mighty about free market competition. Okay it delivers cheaper products, but people end up paying for it in other ways, for example, higher taxes due to increased social welfare due to the closure of medium/small business that cant compete with the large conglomerates or chain stores.

I dont know if the regulations that they are proposing will work, But anything to keep a stable, indigenous medium and small enterprise industry is worth it.

or maybe im just another European, Obama loving communist
Back to top
View user's profile Send private message
Swampfox10mm



Joined: 24 Mar 2011

PostPosted: Mon May 27, 2013 6:22 pm    Post subject: Reply with quote

So this only benefits big "outside" companies, but not TGIFriday's, Outback, etc?

Color me confused?
Back to top
View user's profile Send private message Visit poster's website
Waygeek



Joined: 27 Feb 2013

PostPosted: Mon May 27, 2013 6:44 pm    Post subject: Re: Korean government trying to crush chain restaurants Reply with quote

dairyairy wrote:

Don't worry, you'll be able to get plenty of recycled leftovers and beef from Australia that is resold as Korean. You know, all the typical service available in small Korean restaurants.


Why is it that every legitimate news story gets a racist comment spin on it when it is regurgitated by a Daves member? The news story is almost always worth discussing, but instead, rational non-racists have to spend the time telling the OP to get a life.

Do we remember the BSE/CJD scare in England? It lasted almost a decade and many died. The pork scare in Ireland two years ago? Where it was found that rotten vegetables weren't even being taken out of their plastic packaging before being ground up and fed to pigs? And I could sit here for a whole day and talk about the scary things the US does to its meat (they're the worst at it no doubt). Selling Australian meat in restaurants is hardly a major offence. I often see Aussie meat in the big chains; I know it is, because it has a big sticker on it.

Having said that the big stores closures annoy the hell out of me, and I think it's ridiculous and doesn't work.


Last edited by Waygeek on Mon May 27, 2013 6:53 pm; edited 1 time in total
Back to top
View user's profile Send private message
FDNY



Joined: 27 Sep 2010

PostPosted: Mon May 27, 2013 6:46 pm    Post subject: Reply with quote

You people seem to think big business and multinational corporations are some evil manifestations of uncontrolled greed, manipulation and the ultimate downfall of everything we hold dear and close to our hearts. ABSOLUTE RUBBISH! The biggest corporations on the planet could be eradicated in a matter of months very easily. How? DON'T BUY THEIR STUFF! But low and behold people would rather shop at large, innovative, comfortable, cheap stores with a large selection of both domestic and international goods. So, the only reason these corporations are flourishing is because the MAJORITY of consumers want them. So myself, and the rest of the majority, would be grateful if the government didn't pass laws to protect the myopic, selfish and backwards few who pine for OBSOLETE and INEFFICIENT business models.
Back to top
View user's profile Send private message
atwood



Joined: 26 Dec 2009

PostPosted: Mon May 27, 2013 6:59 pm    Post subject: Reply with quote

nicwr2002 wrote:
I like this actually. I'm tired of seeing a Hodudalk chicken place every block. My favorite family run samgyeopsal place was bought out by some chain restaurant as well. I guess that was the owner's fault who knows. I remember my father saying that when he would travel down the interstate, in America, you could always find those unique restaurants in each city. However, nowadays there's a McDonald's, Wendy's or some other chain store.

In another thread people were complaining about how owner's of buildings and property won't open anything risky and instead open a coffee shop. Maybe this will get people to open up a variety of places instead of that coffee shop.

Why don't you think he sold out at a big profit? It could have been the best thing that ever happened to him.

There are still plenty of unique restaurants in the U.S. But, yea, people over the years have chosen McDonald's and the like over greasy spoons where you had no idea how clean, etc. the food was when traveling.

Of course, in Korea the little restaurants you're referring to are usually the farthest thing from unique.
Back to top
View user's profile Send private message
Steelrails



Joined: 12 Mar 2009
Location: Earth, Solar System

PostPosted: Mon May 27, 2013 7:21 pm    Post subject: Reply with quote

I eat at mom and pop restaurants for quality, and I eat at McDonald's because I want McDonald's. Business models have nothing to do with it, taste does.

There's times for protectionism, I'm not sure restaurants are one of them. Food is one of those things that people will pay a little more for it tastes better.

To sorta go with what atwood is saying, there are better ways to help small restaurants compete. Another idea would be to offer tax credits or subsidies to small restaurants to remodel and put on a cleaner look with a new sign.

In my town, the most popular spot is a locally owned and operated. The guy took a fairly standard Korean BBQ joint, remodeled it so that it was all table seating, put a couple of TVs up that always have the baseball game on, and decided to openly market the fact that he was selling Australian beef, but it costs half as much as everywhere else. His marinades are great and he provides that thing restaurants need- atmosphere. Whistle blows and guys pour in to watch the game and eat, and families come in for an affordable beef dinner. Chain restaurant down the block? Closed down. If restaurants fail it's because their food or atmosphere or both suck. It's seldom if ever because a TGIFriday's opened next door.

However I will say that when it comes to these topics, sometimes Dave's posters have a tendency to project their own desires or the products that they wish were available onto the issue and don't have the interests of the Korean people at heart.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Korean Job Discussion Forums Forum Index -> General Discussion Forum All times are GMT - 8 Hours
Goto page 1, 2, 3, 4  Next
Page 1 of 4

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


This page is maintained by the one and only Dave Sperling.
Contact Dave's ESL Cafe
Copyright © 2018 Dave Sperling. All Rights Reserved.

Powered by phpBB © 2001, 2002 phpBB Group

TEFL International Supports Dave's ESL Cafe
TEFL Courses, TESOL Course, English Teaching Jobs - TEFL International