
London Bagel Museum in Seoul’s Anguk space bustles with guests on this January 2024 file photograph. Korea Instances file
London Bagel Museum, the bakery chain that sparked Korea’s latest bagel craze, is now pursuing a daring growth technique, which has sparked each optimistic and cautious predictions.
Retail trade insiders acknowledge the model’s sustained recognition, however warning that growth doesn’t at all times equate to long-term progress. They level to examples of different once-popular manufacturers whose speedy growth in the end led to a dilution of their model worth.
Based in Seoul’s Anguk neighborhood in 2021, London Bagel Museum shortly grew to become a sizzling spot for each locals and vacationers, attracting crowds with its distinctive British-inspired decor and various bagel flavors.
The bagel maker’s attraction is simple, as evidenced by the lengthy traces forming outdoors its places in Seoul, Suwon and Jeju.
LBM, the model’s operator, posted 36 billion gained and an working revenue of 12.6 billion gained in 2023. In line with studies, a London Bagel Museum department in Lotte World Mall in Jamsil, Songpa District, reached gross sales of 1.5 billion gained ($1 million) by itself.
One of many key drivers behind the model’s success is its exclusivity. Regardless of its rising recognition, LBM operates simply six retailers nationwide, making a notion amongst customers that its bagels are uncommon and extremely coveted.
Nevertheless, latest strikes counsel that LBM is shifting gears. The corporate has been securing investments, opening extra pop-up shops, and even launching on-line gross sales, signaling its intention to develop.
In October, information outlet the Bell mentioned that LBM chosen Financial institution of America because the lead supervisor for the model’s bid to boost as much as 300 billion gained for its international growth. The corporate has reportedly additionally arrange an workplace in Japan.
In August, Market Kurly, a preferred on-line meals market right here, launched gross sales of London Bagel Museum’s merchandise on-line for the primary time. London Bagel Museum additionally held a joint pop-up with meals catering service supplier Hyundai Inexperienced Meals on the Nationwide Meeting earlier this month.
Regardless of these strikes, there are issues about whether or not LBM can preserve its attract because it expands. Comparable chains like Knotted and Shake Shack have demonstrated that speedy market progress in Korea doesn’t at all times translate into sustained gross sales.
“It’s a frequent technique for a preferred meals firm to develop its market, maximize its worth after which exit the market to safe the return of funding,” a market professional mentioned.
“It stays to be seen whether or not London Bagel Museum will maintain seeing the identical recognition alongside its market growth.”