Friday, December 27th, 2013
SEOUL, KOREA - According to survey results on service industries published by the National Statistical Office on December 26, small business owners doing franchise businesses selling fried chicken, patisserie, and the like are earning 2 million won a month on average in 2012.
Of the monthly sales income of 20 million won, as much as 60 percent is paid to the franchiser in the form of food ingredients and other charges. The rest of 40 percent goes to store rental payment, employee salaries, and utilities, with the remaining take-home profit a bit over 2 million won.
In annual terms, self-employed franchisees earned 232.7 million won, with a 24.5-million operating profit (operating profit ratio of 10.5%). Although their average sales revenue is no small amount, their net profit was only 2.05 million won a month.
The franchisees engaged in the business of restaurant and hospitality, including coffee shops, fried chicken restaurants, and bakeries, earned an average of 1.89 million won a month. Those in the business of sports and leisure such as karaoke bars and indoor golf clubs earned only 1.19 million won. The retail business including convenience stores had the monthly net income of 2.46 million won. Those businesses with higher monthly income included wholesalers (2.75 million won) and auto repair shops (2.62 million won).