"Ten Years from Now, We Hope Daily Beer Will Be a Neighborhood Landmark" — Interview with CEO Sangjin Lim
2024
Economic Review
Author
생활맥주
Date
2024-03-09 10:25
Views
4
"We don't want Daily Beer to be remembered as just another franchise brand. Ten years from now, we hope people will find it unusual to see a neighborhood without a Daily Beer location. Our goal is to become a familiar brand that is part of everyday life."
Speaking at Daily Beer headquarters in Yeouido, Seoul, CEO Sangjin Lim reflected on the company's 10th anniversary and shared his vision for the future. Founded in 2014, Daily Beer has grown into one of Korea's leading craft beer franchise brands, offering a wide selection of craft beers developed, brewed, and distributed in collaboration with more than 60 local breweries across the country.
From its first location in Yeouido in 2014, Daily Beer has expanded to more than 250 stores nationwide. The company's tenth anniversary marks a significant milestone, as it prepares for a KOSDAQ listing while also opening its first overseas location.
"Being listed on the stock market means earning recognition as a company with long-term investment value after a rigorous evaluation process," said Lim. "The restaurant industry has traditionally been viewed as an industry that investors tend to avoid. We hope to change that perception."
"Our ultimate goal is to demonstrate that Daily Beer is a company capable of sustainable growth and worthy of long-term investment," he added. "Over the past decade we have continued to grow steadily, and becoming part of the capital market will not only be meaningful for our company but could also serve as a positive example for the broader food and beverage industry."
Except for the COVID-19 pandemic years of 2020 and 2021, Daily Beer has maintained consistent growth since its founding. The company recorded approximately KRW 29.5 billion in revenue last year, an increase of 45 percent compared to the previous year's KRW 20.4 billion.
Lim attributes the company's resilience during the pandemic to its early preparation for delivery services. Daily Beer began developing its delivery strategy in 2016, launched chicken delivery in 2017, and introduced Daily Chicken in 2019 as both a shop-in-shop concept and a dedicated delivery brand within Daily Beer locations.
"Even if a beer brand serves excellent fried chicken, customers may not immediately think of ordering it for delivery," Lim explained. "Fortunately, Daily Chicken has built strong customer loyalty by focusing on product quality and taste, and many customers order our craft beer together with the chicken."
He added that delivery remains optional for franchise owners, with approximately 130 stores currently offering the service.
Expanding Overseas with Singapore as the Starting Point
This year marks an important turning point in Daily Beer's global expansion strategy. The company plans to open its first overseas Daily Beer location in Singapore during the first half of the year, while Daily Chicken is also preparing to launch its first international store.
To support its expansion, Daily Beer established a joint venture with Singapore-based Katrina Group. Daily Chicken will expand through a master franchise agreement with the same partner. At the same time, the company is preparing for direct entry into the U.S. market through its U.S. subsidiary, established in 2021.
"Since 2018, we've participated in nearly every major international franchise exhibition," Lim said. "However, expanding overseas with alcoholic beverages presents unique challenges due to regulations and taxation. After careful consideration, we decided to develop an entirely new concept together with our brewery partners in Singapore."
He added that Daily Beer plans to bring its proprietary yeast strains to Singapore and brew locally using recipes jointly developed with its partners. "For the U.S., our long-term plan is to enter the market through company-owned operations."
Company-Owned Stores Remain the Core Business Model
Lim considers company-owned stores to be a cornerstone of Daily Beer's business strategy. Nearly 20 percent of the company's locations are directly operated by the company, a significantly higher ratio than that of most restaurant franchise brands in Korea.
"We use our company-owned stores in different types of commercial districts to understand changing consumer trends and continuously improve our operations," Lim said. "Because we operate our own stores using the exact same ingredients, pricing, and business conditions as our franchisees, we are able to better understand the challenges they face."
He emphasized that the company continually seeks ways to improve franchise profitability and noted that Daily Beer has never charged franchise owners advertising fees or royalties since the company's founding.
Reflecting on the past decade, Lim recalled the opening of the company's first franchise location in Hannam-dong as one of his most memorable moments.
"I still remember becoming emotional when I saw our first franchise store, a small 10-pyeong location in Hannam, become an incredible success," he said. "At the time, craft beer was largely associated with neighborhoods like Itaewon and Gyeongridan-gil."
"Instead, we chose to open stores in residential neighborhoods rather than only in major commercial districts. Our first company-owned store in Yeouido was also located in a residential shopping complex. From the beginning, our goal has been to make great craft beer accessible close to where people live, and that philosophy continues to define the Daily Beer brand today."
Speaking at Daily Beer headquarters in Yeouido, Seoul, CEO Sangjin Lim reflected on the company's 10th anniversary and shared his vision for the future. Founded in 2014, Daily Beer has grown into one of Korea's leading craft beer franchise brands, offering a wide selection of craft beers developed, brewed, and distributed in collaboration with more than 60 local breweries across the country.
From its first location in Yeouido in 2014, Daily Beer has expanded to more than 250 stores nationwide. The company's tenth anniversary marks a significant milestone, as it prepares for a KOSDAQ listing while also opening its first overseas location.
"Being listed on the stock market means earning recognition as a company with long-term investment value after a rigorous evaluation process," said Lim. "The restaurant industry has traditionally been viewed as an industry that investors tend to avoid. We hope to change that perception."
"Our ultimate goal is to demonstrate that Daily Beer is a company capable of sustainable growth and worthy of long-term investment," he added. "Over the past decade we have continued to grow steadily, and becoming part of the capital market will not only be meaningful for our company but could also serve as a positive example for the broader food and beverage industry."
Except for the COVID-19 pandemic years of 2020 and 2021, Daily Beer has maintained consistent growth since its founding. The company recorded approximately KRW 29.5 billion in revenue last year, an increase of 45 percent compared to the previous year's KRW 20.4 billion.
Lim attributes the company's resilience during the pandemic to its early preparation for delivery services. Daily Beer began developing its delivery strategy in 2016, launched chicken delivery in 2017, and introduced Daily Chicken in 2019 as both a shop-in-shop concept and a dedicated delivery brand within Daily Beer locations.
"Even if a beer brand serves excellent fried chicken, customers may not immediately think of ordering it for delivery," Lim explained. "Fortunately, Daily Chicken has built strong customer loyalty by focusing on product quality and taste, and many customers order our craft beer together with the chicken."
He added that delivery remains optional for franchise owners, with approximately 130 stores currently offering the service.
Expanding Overseas with Singapore as the Starting Point
This year marks an important turning point in Daily Beer's global expansion strategy. The company plans to open its first overseas Daily Beer location in Singapore during the first half of the year, while Daily Chicken is also preparing to launch its first international store.
To support its expansion, Daily Beer established a joint venture with Singapore-based Katrina Group. Daily Chicken will expand through a master franchise agreement with the same partner. At the same time, the company is preparing for direct entry into the U.S. market through its U.S. subsidiary, established in 2021.
"Since 2018, we've participated in nearly every major international franchise exhibition," Lim said. "However, expanding overseas with alcoholic beverages presents unique challenges due to regulations and taxation. After careful consideration, we decided to develop an entirely new concept together with our brewery partners in Singapore."
He added that Daily Beer plans to bring its proprietary yeast strains to Singapore and brew locally using recipes jointly developed with its partners. "For the U.S., our long-term plan is to enter the market through company-owned operations."
Company-Owned Stores Remain the Core Business Model
Lim considers company-owned stores to be a cornerstone of Daily Beer's business strategy. Nearly 20 percent of the company's locations are directly operated by the company, a significantly higher ratio than that of most restaurant franchise brands in Korea.
"We use our company-owned stores in different types of commercial districts to understand changing consumer trends and continuously improve our operations," Lim said. "Because we operate our own stores using the exact same ingredients, pricing, and business conditions as our franchisees, we are able to better understand the challenges they face."
He emphasized that the company continually seeks ways to improve franchise profitability and noted that Daily Beer has never charged franchise owners advertising fees or royalties since the company's founding.
Reflecting on the past decade, Lim recalled the opening of the company's first franchise location in Hannam-dong as one of his most memorable moments.
"I still remember becoming emotional when I saw our first franchise store, a small 10-pyeong location in Hannam, become an incredible success," he said. "At the time, craft beer was largely associated with neighborhoods like Itaewon and Gyeongridan-gil."
"Instead, we chose to open stores in residential neighborhoods rather than only in major commercial districts. Our first company-owned store in Yeouido was also located in a residential shopping complex. From the beginning, our goal has been to make great craft beer accessible close to where people live, and that philosophy continues to define the Daily Beer brand today."