YG Entertainment, a subsidiary of YG Entertainment, has invested KRW 15 billion to Haimarrow food services to, a KOSDAQ listed company operating a fast food restaurant ‘Mom’s Touch’ in cooperation with IBK Capital. Even with the stagnation of the fast-food market, sales and operating profit growth seem to have bet on double-digit growth every year.
YG Investments and IBK Capital announced on Dec 24 that they decided to invest in the CBG, which is a 15 billion won worth food service issued by the Haimarrow Food Service.
YG Investments and IBK Capital form the ‘YG-IBKC Lifestyle Value Up Fund’ to participate in the investment.
“This investment seems to be purely a financial investment, betting on the growth potential of food services as a hippocampus rather than a strategic objective,” an industry source said.
Known as “Thigh Burger”, Mom’s Touch has attracted attention as a strategy to reduce the rent burden by opening a store inside the alley instead of putting out a store on a busy street. Advertising and marketing costs were also minimized. Instead, they lowered the price of hamburgers by 20% and threw them at a price ratio (price-quality).
According to the financial information company F & G Guide, Foodservice sales of Seahorse this year is expected to increase 27.59% to 257.6 billion won. Operating profit is also expected to increase 26.63% to W21.4bn.