[뉴스토마토 유태영 기자] E-Land was once one of the leading companies in not only fashion but also restaurant trends.
In 2017, E-Land Group considered selling its restaurant division to reduce its debt ratio. E-Land Park’s restaurant division, which operated the family restaurant ‘Ashley’ and the Korean buffet ‘Jayeonbyeolgok’, accounted for 700 billion won of the company’s 800 billion won in sales. There were about 550 restaurant brand stores nationwide.
In 2019, E-Land Group split the E-Land Park restaurant business division and created a new corporation called E-Land Eats. E-Land Park owns 100% of the shares.
E-Land Eats currently operates 15 restaurant brands, including △Ashley, △Jayeonbyeolgok, △Pizza Mall, and △Roun Shabu-Shabu.
E-Land’s Ashley opened its first store in Bundang in 2003 and successfully established itself by targeting consumers with a salad bar. She once competed against global family restaurant brands Bennigan’s, Sizzler and Outback on low prices.
After launching Ashley, E-Land launched sister brands such as Ashley Classic and Ashley W, but are currently unified as Ashley Queens. As Ashley established itself as a representative restaurant brand, the number of stores operating across the country from over 140 at the time decreased to about 50. This is similar to the number of stores operating in 2009.
As Ashley, the representative brand, is at a standstill, E-Land Eats’ performance is also at a standstill. E-Land Eats recorded sales of 232 billion won and an operating loss of 63.8 billion won in 2020, the year following the spin-off. In 2021, sales were 200.8 billion won and an operating loss was 19.4 billion won. In 2022, it turned into a surplus with sales of 253.6 billion won and operating profit of 6 billion won, but these figures are far from sufficient to make up for the operating deficit in 2020.
As deficits accumulated, E-Land Eats’ debt ratio exceeded 800%. ‘Debt ratio’ is the ratio of total debt divided by equity capital.
According to the E-Land Eats audit report, the debt ratio in 2022 was 825.37%. As of 2021, the debt ratio has soared to a whopping 3538%.
In addition, Jayeonbyeolgok, Pizza Mall, and Loun Shabu Shabu do not have any clear differences compared to competing brands, darkening E-Land Eats’ future sales growth prospects.
E-Land Eats’ sluggish performance contrasts with the actions of The Born Korea, led by broadcaster Baek Jong-won. The Born Korea is evaluated as leading the market by successfully establishing new brands while stably operating existing brands.
‘E-Land Eats’ falls behind the dining trend
The Born Korea’s total sales on a consolidated basis in 2022 are 282.2 billion won. This figure is approximately 30 billion won higher than E-Land Eats’ sales during the same period. Three years ago, in 2019, The Born Korea’s sales were only 139.1 billion won, but sales more than doubled in three years. This is in contrast to the fact that E-Land Eats was unable to escape from an operating deficit during the same period.
The Born Korea is currently in the process of franchising 25 brands. In addition to Hanshin Pocha, Hong Kong Banjeom 0410, Saemaeul Restaurant, Baek Dabang, and Bonga, which have been in business for over 20 years, new brands such as Baek Boy Pizza and Li Chun Market that are in line with the latest dining trends are evaluated to be successfully established. there is.
Ashley’s store. Photo = E-Land Eats
On the other hand, most of the restaurant brands currently in operation at E-Land Eats were brands that had been in operation before the spin-off. Pizza Mall was introduced in 1994, Ashley was introduced in 2003, Loun Shabu Shabu was introduced in 2012, and Jayeonbyeolgok was introduced in 2014.
Lee Jong-woo, a professor of business administration at Ajou University, said, “Most of the restaurant brand stores operated by E-Land Eats are operated in a way that provides a variety of menus rather than a menu specialized in one type, focusing on large stores located in convenient transportation locations.” However, as of 2023, consumers are looking for cost-effectiveness. “They are picky and only want to pay for the food they want to eat,” he said.
He further explained, “The biggest drawback of E-Land Eats’ Ashleyna Jayeonbyeolgok is that you cannot eat the food you want after paying a relatively large amount of money.”
Eo Yun-seon, a professor at the Department of Hotel and Tourism Management at Sejong Cyber University, said, “Family restaurants such as Ashley and Jayeonbyeolgok were popular dining places in the 2010s,” adding, “However, as consumers have become more sophisticated and specialized in the restaurant industry, the dining trend has clearly changed.” said.
He added, “If you want to survive among existing family restaurants, you may not be able to see it in five years unless you have a specialized menu.”
Reporter Yoo Tae-young ty@etomato.com
This article was finally confirmed and revised by Kang Young-kwan, Industry 2 Department Manager, in accordance with News Tomato’s reporting standards and code of ethics.
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2023-10-16 21:00:00
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