NewsStocksThe Born Korea partners with Canada's Sunray Group to expand North American restaurant business

The Born Korea partners with Canada's Sunray Group to expand North American restaurant business

Author: Korea Herald Business·

Key Takeaways

  • The Born Korea signed a memorandum of understanding with Sunray Group, a Canadian hotel and real estate company that operates about 80 hotels under brands including Marriott, Hilton and Hyatt.
  • Under the agreement, a Sunray-operated store in Markham in the Greater Toronto Area will be converted into a The Born Korea restaurant, with the brand and operating plan still being determined.
  • The Born Korea is working with a global food company to begin US production of business-to-business sauces for its Chinese chain Hong Kong Banjum, starting with sweet-and-sour pork sauce.
  • The company plans to use the US partner's production facilities as a key supply hub for North America to cut logistics costs and shorten supply lead times.
  • Paik Jong-won met with two major Canadian food distribution companies about expanding local sales of TBK sauces, and the company is jointly developing home meal replacement products for North American consumers.
The Born Korea partners with Canada's Sunray Group to expand North American restaurant business

A global push by The Born Korea and its CEO, Paik Jong-won, is taking shape through initiatives spanning restaurant brands, local sauce production and distribution networks across North America.

The Born Korea said Tuesday that Paik recently signed a memorandum of understanding with Sunray Group, a major Canadian hotel and real estate company, for cooperation in the restaurant business. The signing came during Paik's business trip to North America, which began Aug. 2 and is part of the company's broader push into the region. The Born Korea built its business at home on a multi-brand portfolio of franchise restaurants, from Chinese chain Hong Kong Banjum to cafe and casual-dining concepts, and Paik, one of South Korea's best-known chefs and television personalities, has fronted the company's efforts to take those brands overseas. The North American push also comes as Korean food and culture have found wider international audiences, giving Korean restaurant and packaged-food brands greater visibility abroad.

Sunray Group operates about 80 hotels in Canada under brands including Marriott, Hilton and Hyatt. Under the agreement, the two companies plan to convert a Sunray-operated store in Markham, in the Greater Toronto Area, into a restaurant under one of The Born Korea's brands, and are working on selecting the brand and drawing up detailed plans for the store's operation. The brand choice and operating plan for the Markham location will offer an early indication of how the company adapts its domestic concepts for Canadian consumers.

Starting with the Markham project, the two sides are also considering introducing additional The Born Korea restaurant brands at hotels and commercial facilities owned by Sunray. Partnering with an established hotel and real estate operator provides access to locations and a local operating counterpart, often among the practical hurdles of overseas restaurant expansion, though the agreement remains a memorandum of understanding rather than a finalized deal.

During his trip to Canada, Paik also met with executives from two major food distribution companies to discuss expanding sales and local distribution of The Born Korea, or TBK, sauces and other products.

In the United States, The Born Korea said it is working with a global food company on local production of the business-to-business sauces used at its Chinese food chain, Hong Kong Banjum. Production will begin with the brand's sweet-and-sour pork sauce and eventually extend to other key sauces used at The Born Korea's restaurants.

The Born Korea plans to use the US partner's production facilities as a key supply hub for its expansion across North America, aiming to reduce logistics costs and shorten supply lead times while establishing a stable supply system capable of supporting the growth of its restaurants and distribution business in the US and Canada.

The company is additionally working with the global firm on the joint development of home meal replacement products targeting North American consumers. Home meal replacements are convenient, largely pre-prepared meals sold to consumers rather than food-service businesses. Among the milestones ahead are the brand decision for the Markham store, the start of US production of Hong Kong Banjum's sweet-and-sour pork sauce, and any follow-on distribution agreements arising from Paik's meetings in Canada.

"Business opportunities that CEO Paik Jong-won identified firsthand overseas are leading to concrete partnerships with local companies," said a The Born Korea official. "By combining The Born Korea's brand and product development capabilities with the production and distribution networks of local companies, we will continue to expand our global business achievements, from restaurant openings to product production and distribution."