The Franchise Proposal

Franchise Proposal
By Sebastian Yoon

Korea has a diverse restaurant culture, but
surprisingly it widely lacks of authentic casual
German kitchen and an attractive selection of
innovative beverages.
Our concept starts with a simple but yet not
realized idea. Bringing German snacks along
with the Currywurst to Itaewon through a
casual dining restaurant. The restaurant
creates a jovial atmosphere that encourages
people to enjoy a great time there.
A great assortment of creative dishes and
trendy beverages proves that German dining
can be exciting and exhilarating.
Cozy Drinking Experience
With Friends

The target group represents both young
professionals, expats and tourists. Especially
female groups are attracted by bars and
restaurants. They love to indulge in great
food with refreshing drinks and have a
unique experience with their friends.
Custom-designed drinks like the banana
wheat beer, cola wheat beer and cherry
wheat beer are what our female guests will
truly enjoy. Additionally our special cocktail
selection made of German liquor surely
pleases everybody else.
Of course the menu also offers several
German light draft beers.
All drinks are served with savory currywurst
dishes and other light snacks that don‘t sit
heavily on our customers stomaches.
The Restaurant For Young & Hip
Women

The concept clearly aims at creating a
comforting dining experience. . It focuses on
selling alcoholic drinks. Authentic and delicious
German snacks are perfect to enjoy with
trendy beer and cocktail variations.
The product range of the restaurant consists of
both savory sausage dishes and Belgian fries
as well as light healthy salads and delicious
baked goods.
The range of beverages offers widely known
brands like coca cola, sprite, fanta and also the
German beer Früh Kölsch, Beer mix drinks and
a extensive range of German cocktails.
Additionally the restaurant serves different
fresh juices like orange juice, apple juice etc..
Outstanding Dishes
And Drinks

Due to its close location to the center of
Itaewon the restaurant will face nearby
competitors such as Mr. Kebab, Subway, Mc
Donalds. Other competitors include various
casual and fine dining restaurants like Vatos or
Between.
Particularly noteworthy is Vatos which quickly
grew into one of the most popular restaurants
in Seoul by infusing Mexican food with Korean
elements. Another essential key to success is
the extensive range of creative alcoholic
beverages.
It recently opened 2 more locations in the area
of Gangnam. Success stories like Vatos clearly
demonstrate the opportunity and potential it
offers to entrepreneurs
A Diverse & Vibrant Area

Cultures adopting flavors from other cultures tend to lean towards the sweet side at first and then mature to the savory and drier
side. Korea has done this to the extreme, as it does many things, with sugared garlic bread, candy coffee drinks, sweet potato
pizza, honey mustard drenched “fusion” food, strawberry and whipped cream sandwiches.
The German Currysauce naturally comes with a pleasant sweet and spicy flavor that meets the taste of Koreans.
Sweet flavored cocktails and beers share the must have’s of successful products.
The Opportunity
High Price- Low Value
A tongue-in-cheek rule in Korean marketing is to just slap a higher price tag on it, and consumers unquestioningly think it’s better.
But with the still sluggish recovery, high household debt, falling, combined with more maturity in taste, consumers will look for
more value in the foods and drinks they buy. Since the Currywurst has been always a quality product to a reasonable price it
definitely reflects its value proposition that goes along with the economical environment. The alcoholic products are pricy but not
expensive.
Market Potential
A significant opportunity is the high diversity of different nationalities and cultural backgrounds of people in Itaewon.
It is a hub for experiencing new impressions in the food serving industry.
In response to this Red Bang will continuously introduce new product concepts to experiment with new ideas and
test them in the store. Those creations are products like a currywurst burger or more traditional dishes like Jägerwurst with Fries.
In addition to general business risk among other things, the risk biggest risk is that customers don’t accept and appreciate the
products & service of the restaurant.

Garosu-gil
- Short lived trends
- Touted by government to prevent drastic decline of customers
- Rising rents and entering of franchises led to downfall
- Few interesting restaurants like Pier 17 are the rare case
- Bland street for fools with more money than taste.
Brunch
- Doesn’t live up to expectations
- Customer preferences tend to real breakfasts
Coffee Shops
- Over-saturation
- Aggressive expansion of Starbucks endangers independent store owners
- CEO’s of Café Bene and Angelinus do not like coffee
Kebab
- Sultan of Kebabs retreats from Korean market due to ownership issues.
- Expansion very difficult
- Niche market Itaewon
Food Trends In Korea – What’s Out

Mexican and Ko-Mexican
- Vatos Urban Tacos started it in late 2011,and has seriously exploded.
- Tex-Mex has gotten more mainstream after fits and starts.
- Less beans and cilantro and more orange cheese.
Pop-Up Restaurants
- Rise of pop-ups in 2012.
- Vatos lending out old restaurant space to pop-ups
- Trend will continue to grow
Hongdae – Hapjeong – Sangsu
- Northside is about clubs and cocktails, Southside is about wine and malt Scotch
- Riskier and kookier themed restaurants (Castle Praha, Bonjour Hawai, 360α )
- Hapjeong is where the innovation is happening.
Itaewon
- Place for foreigners. Growth of Restaurant Alley has become popular with Koreans.
- It’s a revived trendy place
Craft Beers
- Thanks to laws changes, the market sees a serious rise in the quality of beer in Korea.
Cocktails
-Young Koreans were competitively training to be sharp precise baristas
- Serious cocktailians with a unique Asian touch.
- Extremely popular amongst the younger generation of Koreans
Food Trends In Korea – What’s In

RED BANG®
The New Sausage In Seoul

>
>Use of Germany’s most recognized
snack, Red Bang’s Currywurst
> Professional and comprehensive
training covering every aspect of
owning and operating a Red Bang®
store
> Support through all stages of the
store building process
> Ongoing training, infrastructure
and marketing support
> Local franchise consultant to help
with ongoing store operations
including; meeting health and safety
regulations and improving
operational effectiveness and
efficiencies by adopting best
practice in stores
> A dedicated store territory
The Benefits Of The
Franchise

>
Red Bang® takes the process of
franchisee selection very seriously.
Our objective is to ensure every
franchisee in the network is
successful, which is why we look for
the following attributes in
potential franchisees:
> A passion, commitment and drive
to succeed
> Strong leadership skills
> Good people skills
> Good administration skills
> Entrepreneurial flair
> An ability to have fun and work in
a young, energetic
and vibrant organization
Are You Red Bang®
Franchise Material?

RED BANG®
THE CURRYWURST RESTAURANT

>
Concept
Red Bang® developed a unique
concept with a real perspective in
South Korea. Below are the key
points that you should consider
before opening the first store.
Income
You are the boss! Your income
depends on different criteria. These
include personal commitment, the
conditions of the location and the
competitive situation.
Entry Fee
Red Bang® charges a one time
payment of ₩ 12 mio. from the
franchisee. It’s a comparatively low
investment for this promising
venture.
Similar franchises charge a good
deal more.
A Look Into Red
Bang’s Model

>
Financing
The investment ideally should
consist of at least 50% equity. In
addition, Red Bang® advises the
franchisee on the selection of
appropriate financing models.
Form Of Enterprise
The franchisee has the option to
choose from acceptable legal forms.
Franchise Fee
The franchise fee is 7% of the
weekly gross sales.
Who Doesn’t Like A
Good Currywurst?

>
Location
Each candidate has the right to
propose a specific area. The
franchisor shall examine this
request and shall, after a
positive location analysis and
determines the area with the
franchisee.
Contract Time
The contract term is 5 years.
Beyond that a binding option
will be given for another 5
years.
Advertising Costs
The advertising fee is 6% of the
current gross sales.
The Delicious Snack
Comes To Korea

>
Manual
Red Bang® has an unmistakable
corporate design. It standardizes a
uniform appearance of all stores. To
strengthen the development of a
strong brand. Red Bang®
implements legally binding
guidelines.
Those are indispensable – for
example regarding the shop
equipment. All the requirements of
Red Bang® The franchisee is given
the manual on signing the contract
and hands it back to franchisor at
the end of the contract.
Investment
The investment amount is individual
and is based on the premises and
equipment features of a store.
Estimations amounts to ₩77 mio. -
₩110 mio. .
The Franchise
With Appeal

Why
Red Bang®?
PROSPECTIVE FRANCHISEE GUIDE

OUR VISION
No1.InPeople,
No1.InSausage

OUR MISSION
SELL MORE CURRYWURST,
HAVE MORE FUN

OUR VISION
OUR GOAL
Customers For Life!

>
The Currywurst is among the top 3
of the most popular foods in
Germany and has been for years
unchallenged No.1 as the best-
selling snack product. The sausage
culture is already very popular in
South Korea. Koreans love to
indulge themselves with all sorts
auf sausages.
The fast-food and take-away
consumption of food is steadily
growing. The reasons for this are
many people's changing
professional situation and the
transformation of the social
structure with the increase of single
households.
Bratwurst and Currywurst have
long since taken its way into fine
dining and continue to become
more popular regardless of age and
in all walks of life. The target group
encompasses young to old, man or
woman, students, drivers, laborers,
artisans up to the manager.
Why Red Bang®?

>
Despite the growing popularity,
the Currywurst is not yet widely
available in Seoul. For the first time
the franchise offers entrepreneurs a
unique opportunity to make the
Currywurst popular in Korea.
A first class product builds the
foundation for a sustainable and
growing success
Red Bang® Currywurst naturally
comes from a particular region and
is produced according to a
traditional recipe specifically and
only for us. Manufactured by
leading butchers with an excellent
reputation and expertise.
Selected ingredients, careful
processing and experience ensure
the unique taste. Our special sauce,
according to a secret recipe, refines
the sausage to the original .
A German
Success Story

>
Lease a memorable name. When
starting a Red Bang® franchise the
franchisee uses the Red Bang®
name and the concept. Especially
the idea and the uniqueness of fresh
German sausages in the quick
service restaurant industry creates
value both for the franchisee and
customers.
The franchisor trains and supervises
the Red Bang® franchisee. The
whole thing costs an initial fee and
a monthly royalty fee. Red Bang® is
a classic franchising system. The
concept has a binding framework in
which you are moving.
Strong company between the
individual stores originates
primarily through the defined
corporate identity and high quality
standards. The manuals set the
framework of guidelines and
contractual agreements.
Build Your Future
With Red Bang

>
The franchisee independently sells
products, pays fees for the use of
uniform equipment, the Red Bang®
name, the outside/ inside appearance
and the sophisticated idea by
implementing appropriate know-how
.
The franchisee is a lawful distributor
in his own name and on its own
account. The Red Bang Co,. Ltd.
concentrates on the construction and
expansion of a developed business
model named Red Bang®.
The operation of Red Bang® stores is
for the most part the franchise
partners responsibility. Reference will
be the flagship store in Itaewon,
Sinchon, Hongdae or Gangnam
Seoul.a
Synergies Create
A Win-Win Situation

>
Lease a memorable name. When
starting a Red Bang® franchise the
franchisee uses the Red Bang®
name and the concept. Especially
the idea and the uniqueness of fresh
German sausages in the quick
service restaurant industry creates
value both for the franchisee and
customers.
The franchisor trains and supervises
the Red Bang® franchisee. The
whole thing costs an initial fee and
a monthly royalty fee. Red Bang® is
a classic franchising system. The
concept has a binding framework in
which you are moving.
Strong company between the
individual stores originates
primarily through the defined
corporate identity and high quality
standards. The manuals set the
framework of guidelines and
contractual agreements.
Great Partnerships
Are Keys To Success

>
The second pillar of our conceptual
orientation is continuity.
The concept includes a continuous
expansion with a manageable
growth. Red Bang Co., Ltd. values
long term-partnerships and trust
building over shareholder value or
ruthless profit maximization.
The people behind Red Bang®
have +30 years experience in
the German sausages culture.
They know the strengths and
weaknesses of various fresh
sausage concepts and have deep
knowledge about it.
The personnel expenditure, in a
classic franchise system,
empirically costs a quarter of the
gross revenue.
The goal is to sell fresh German
sausages with this specification.
Thriving
Through Continuity

>
>Compact design of the stores
>Unique and compelling brand
image
> Predefined handling and
procedures according to operation
manual
> Manageable product range
> "to Go" business essential part
> Processes and procedures are
clearly defined
> Sausages with sauces, salads,
fries and baked good are based on
convenience
> Drinks made by premix or
postmix systems and the packaging
is reduced to a minimum
>Franchise concept with first mover
advantage
>Deeply established sausages
culture in Korea and affinity for
German products
>Low entry barrier
The Steps
To Success

>
The individual franchisees must
have the opportunity to make a
profit with moderate capital
expenditures.
The distinctive points of the Red
Bang® concept are:
1 Comforting and spacious stores
2 Possible “take out” system
3 High quality product creations
with fusion elements
4 Entertaining character of hot
curry powder concept
5“ Beat the Korean Dragon
Challenge”
– Winner dines for free
6 Regular deals on products
7 Limited personnel
8 Little logistics and warehouse
9 High margins on the products.
10 Small start-up capital. A large
part of the equipment
can be financed by a leasing
contract
Return On Investment

>
It is important to create synergies
between franchisor and licensee.
A classic win-win-situation makes
both franchisor and franchisee
strong against potential competitors
and be able to build enough
substance to overcome potential
hazards and risks.
Franchise partner rights:
>Take over of the finished store
>The right to use the trademark,
patents and to sell the products
profitably
>To operate more Red Bang®
locations
>Gets an assured quality
>Marketing, advertising and
continuous image building
Duties:
>Timely payment of fees and
royalties
>Responsibility for compliance with
quality standards and training of
employees
>Warehouse management with
storage for everyday needs
Rights & Duties

>
Franchisor Rights:
>Follows the main interest of
expansion , thus strengthens the
brand
> Gets a unique franchise fee for
each opened store
> Receives weekly fee 7 % of
gross sales of the stores
> Has copyright, patents and
proprietary rights
> Is partner with the franchisee and
partly with landlords
and promotional materials
> Approves the store locations
Duties:
> Must ensure the global
expansion
> Must use the advertising budget
> Buys the planning resources and
equipment
> Creates the new store and makes
it ready for use
> School staff
> Checks the quality standards
> Develops the concept
continuously
> Stores spare parts, marketing
materials, sales materials,
packaging, sauces, flour, etc.
Rights & Duties

>
During rush hour, the handling of kitchen
equipment is easy and without problems.
The optimization of processes are crucial
ways to be economically successful.
Red Bang® conducts the planning of work
processes and margin calculation and
trains the franchisee to internalize all
processes in the store for their success.
Turnover, break-even and profitability -
these are all important terms from the
financial world. It is important for us, that
your commitment is worthwhile.
Our precise calculations become your
success model. For now, a customized
business plan will be created and
developed.
The Workflow

Surely you have been wondering what
the name Red Bang means. Well, Red
Bang® is a metaphor for the famous
Currywurst and the unique experience it
stands for. It also means “Red Place” in
Korean. Truly ambiguous: What is Red
Bang® for you?
The name represents all important
aspects of the dining experience. From
imaginary expectations to the real
fulfillment. It is just takes a step inside a
Red Bang® store. The 8 different hot curry
powders create a delicious and hot
explosion in your mouth.
Become a part of our strategy and
actively build the foundation of your
success. Ideas are checked immediately
and implemented if possible.
Red Bang® is a trademark. The
conception and orientation is a protected
brand.
The Brand Red Bang®

>
The corporate design of Red Bang® is clearly
defined. The restaurant aims to produce a
comforting sense of belonging and to stand out
from the mainstream chains. Our concept is
based on expansion. To establish Red Bang® in
Korea, we focus on strong growth especially at
the beginning
To achieve this, we have elaborated “Pioneer
deals":
special royalty fee discounts for the first signed
contracts as a franchisee. Be there from the
beginning and benefit from the Red Bang®
concept.
Together with you, a clear company philosophy
and an unique offer we want to successfully
develop the brand. Be the first in your area,
region or city, that offers fresh German
sausages to a fair price. Enjoy it in the store or
simply take out it.
The Brand Red Bang®

>
Red Bang® is a brand that
continuously develops as a
marketing tool. The corporate
requirements are a sustaining
element in the concept.
The customer should be able to
recognize products and stores
worldwide. The brand image and
customer identification is vital for
the success. Red Bang® has an
elaborate but manageable
product range. "We can not do
everything.
We make what we are best at.
We are definitely not a sundry
shop. A clear and structured
specialization helps us making
dishes people really enjoy.
With Focus And
Passion

>
With Red Bang® we offer you an
attractive and profitable system. We
support you where we can.
Now we are looking for
independent, entrepreneurial
minded partner(s). who come with
staff or management experience.
The franchisee is responsible, that
his crew is professionally trained
and complies with quality standards
and procedures.
Come And Join
Our Journey

>
The potential franchisee can greatly
influence the setup time. A Red Bang®
store can be realized within six weeks at
an already existing selected location.
• Experience has shown that the site
selection and the signing of a lease
contract are the most effortful tasks.
• The financing is usually quickly decided
,clarified and arranged.
• Similarly, the qualification of the
potential franchisee.
Construction Time

Expression of interest
Selection of
store location
Calculating and
assure financing
Undersigning of
lease contract
Training staff
locally
Assessment of
potential franchise
partner
Opening and
marketing

>
TASK ONE
>EXPLANATION
DEFINE CONDITIONS FOR THE
CURRYWURST EXPERIMENT
>DISCUSS QUANTITY OF
CURRYWURST, SAUCE,
EQUIPMENT WITH INVESTORS
AND THE TEAM
>SET DATE AND LOCATION
>LAUNCH EXPERIMENT AT
DIFFERENT LOCATIONS
>POINT OF SALES: STREETS &
PUBLIC PLACES
GATHER DATA FROM CUSTOMERS
DURING EXPERIMENT AND
ASSESS VIABALITY OF BUSINESS
MODEL
The Experiment1-3 WEEKS
The
Currywurst
EXPERIMENT

TASK TWO
>EXPLANATION
CONTROLL AND ASSESS PERFORMANCE
OF THE EXPERIMENT
>DISCUSS RESULTS OF EXPERIMENT WITH
INVESTORS AND TEAM
>PROPOSE OPTIMIZATION OF BUSINESS
MODEL IF NECESSARY
INITIATE THE LEAD TIME PHASE
The Test Phase

TIMELINE – FIRST STORE
1-3 Weeks
THELEADTIME
Month 1
2-6 Weeks
STORESELECTION
ANDDECISIONMAKING
Month 2
6 Weeks
LAUNCH&
6WEEKIN-STORE
TRAINING
Month 3 Month 4
EVALUATION

>
TASK ONE
>EXPLANATION
DEFINE DESIGN, EQUIPMENT,
SUPPLIERS& OTHER RESOURCES
>DISCUSS STORE DESIGN, MENU
ITEMS, FIXINGS, EQUIPMENT,
PRICING& COSTS WITH INVESTORS
AND THE TEAM.
>OPTIMIZE CONCEPT IF NECESSARY
IDENTIFY POTENTIAL SUPPLIERS
AND CREATE PURCHASE PLAN
Get Ready
For Red Bang The
Lead Time
1-3 WEEKS

TASK TWO
>EXPLANATION
IDENTIFY LOCAL SUPPLIERS
>MEET WITH THE FOUNDER OF BAKERS
TABLE AND OTHER SUPPLIERS TO
PROPOSE COOPERATION
>DEVELOP PRODUCT CONCEPT AND
ADAPT IT TO FINANCIAL PLAN
ACCORDINGLGY
DETERMINE STRATEGIC PARTNERSHIPS
>SPECIFY TERMS OF PARTNERSHIP
>REDUCE COSTS AS MUCH AS POSSIBLE
>CREATE PURCHASE PLAN
Time To Become Serious

>
TASK ONE
>EXPLANATION
STORE SELECTION
>MEET WITH INVESTORS AND
THE TEAM TO DISCUSS
AVAILABLE STORES AND REVIEW
DATA
>SUBJECT TO THE OUTCOME OF
THIS MEETING: A DECISION ON
FURTHER PROGRESSING WILL BE
MADE
DUE DILIGENCE ON LANDLORDS
AND PROPERTIES
Preparation Is
Everything2-6 WEEKS
Store
Selection
DECISIONMAKING

>
Store Selection &
Decision Making
TASK TWO
>EXPLANATION
STORE SELECTION
>VISIT AVAILABLE STORES, ANALYZE
STORE DATA AND DECIDE WHICH STORE
MATCHES ALL REQUIREMENTS
STRATEGIC AND FINANCIAL PLANNING
>PRESENT AND DISCUSS FINANCIAL
FORECASTING WITH INVESTORS AND
THE TEAM
FUNDS
>GET NEEDED CAPITAL FROM INVESTORS
>FUNDS NEED TO COVER STORE FIT OUT,
LEGAL FEES, WORKING CAPITAL

>
TASK
> EXPLANATION
LAUNCH OF RED BANG STORE
> DISCUSS PROGRESS WITH
INVESTORS AND TEAM FOR
OPERATIONAL APPROVAL
BEGIN TRAINING & OPERATION
> FULFILL ALL ACTVITITIES REQUIRED
TO OPERATE THE STORE
ASSESS PERFORMANCE
> MONITOR SALES, CUSTOMER
ENGAGEMENT AND MILESTONES
It’s Time To Grill
Some Sausages
Launch
6 WEEKS
IN-STORE TRAINING

>
TASK ONE
>EXPLANATION
STORE SELECTION
>MEET WITH INVESTORS AND THE
TEAM TO EVALUATE AVAILABLE
DATA
>SUBJECT TO THE OUTCOME OF
THIS MEETING: A DECISION ON
FURTHER PROGRESSING WILL BE
MADE
IMPLEMENTATION OF BUSINESS
STRATEGY & MARKETING DURING
1st YEAR OF OPERATION
Evaluate Objectives
& ProceedYEAR 1
Success Builds On
Commitment
AND PASSION

Program
Outline
THE JOIN THE
DOTS PROGRAM
>Theoretical
hands on practice
at all stations
within the store’s
circle of operation
>Introduction to
duties involved in
opening and
closing a store
Week
IN-STORE
TRAINING SKILLS
DEVELOPMENT
> Develop skills
learnt
during the Join
the
Dots Program
> Opening the
store - PRP
> Customer
Service
> Product Quality
> Food Safety -
Time
and Temperature
Controls
> Safety and
Security
Week
w
IN-STORE
TRAINING
SKILLS
DEVELOPMENT
> Develop the
skills learnt during
the Join the Dots
Program
> Close the store
- Cleaning and
Administration
> Food Safety
- Cleaning and
Sanitation
> Equipment
Maintenance
>Sales Building
and Cost Controls
Week
STORE
MANAGEMENT
TRAINING
> Selection,
Training
and Retaining a
Team
> Sales Building -
Local
Store Marketing
Strategies
> Team Building -
Fish!
> Growing Profits
- Cost Control
> Leadership Skills
Week
SHIFT
SUPERVISOR
TRAINING -
HANDLING
THE RUSH
> Refine your
skills to
manage the
team
during the rush
while
controlling costs
> Flawless
Execution
- Product Service
and Image
> Leadership and
Communication
> Employee
Relations
Week

BUSINESS
TRAINING
> Business
requirements
and compliance
management
procedures
> Local Store
Marketing
Strategies
> Cost Controls
- Growing Profits
> Rostering
> Selection,
Training
and Retaining
> Maintaining
High Standards
> Food Safety
Supervisor
Training
Week
WEEK OFF
> Miscellaneous
tasks, if required
> Store setup,
if required
Week
SUPERVISOR
TRAINING -
HANDLING
THE RUSH
(Your store)
> Handover -
Market
Manager /
Franchise
Consultant
> Shift
Management
- supported by
Franchise Trainer
Week
STORE
MANAGEMENT
TRAINING
(Your store)
> Handover -
Market
Manager /
Franchise
Consultant
> Store
Management
- supported by
Franchise Trainer
Week
Your trainers will consist of a variety of
people all equipped to help you gain the
skills and knowledge you will require to
run your own Red Bang® store.
These include:
Your franchise consultant who will set up
your training schedule, meet with you
weekly and assess your progress.
A franchise trainer will be assigned to you
for the last four weeks of the program, to
train you in your own store.
These trainers will be your resource and
should assist you to refine the skills you
have acquired during the initial four weeks
of training. Each person will have valuable
knowledge to share about his or her job,
listen carefully and learn what you can!
PROGRAM TRAINERS

>
OUR MOTTO
>At Red Bang® we understand
each store is different in shape, size,
look and feel, which is why
we have a variety of store designs
and layouts to make sure your
store has the look and feel which is
right for you.
NOW
>Our store design is being rolled
out across Korea as new stores
open or old stores require
refurbishment.
FUTURE
>Here are some examples of store
layouts and image designs to give
you an understanding of
what Red Bang® stores will look
like now and in the future.
Design As
A Concept

>
Itaewon A Vibrant
& Metropolitan Area
THE LOCATION

The Red Bang Store
COMFORTING AND STYLISH, IT’S NOT JUST THE FOOD

Capacity:
40 People
- 8 Tables
- Bar
- Kitchen
- Toilet
Cost:
~5 mio rent
~75 mio deposit
~100 mio. premium
~350k gas
~350k electricity
80m² Floorplan

Capacity:
80 People
- 8 Tables
- Bar
- Kitchen
- Toilet
Cost:
~9 mio rent
~100 mio deposit
~120 mio. premium
~500K gas
~500k electricity
120m² Floorplan

>
Red Bang’s marketing department
is responsible for all internal and
external marketing of Red Bang
Korea.
PROMOTIONS
> New product development
COMMUNICATIONS AND PR
> Generating a positive local and
national presence
> Public relations support
> Social media communication:
Facebook, YouTube,
Twitter, Google Plus, Instragam.
ONLINE DIGITAL
> Red Bang’s website
> Online ordering
> E-recruitment website
> Search engine marketing and
search engine optimization
>Social media development and
management
Marketing

>
ADVERTISING
> OTV advertising
> utdoor advertising e.g.
Billboards, Bus Signage,
Posters etc.
> Radio advertising
PRODUCTION AND PRINT
> POS (point of sale) material
> Local store marketing (LSM)
production, print and
distributions
> Box topper flyers – production
and print
On a local level, you will be
expected to undertake
additional local
marketing including, sponsorship
and supplementary
box topper flyer distribution
MARKETING TEAM
The Marketing Team consists of
five divisions: Promotions,
communications, digital, product
development and product and
Sales Analysis.
.
Clever Marketing
Pays Off

>
CHIEF MARKETING OPERATOR
Responsible for the marketing
strategy and programs in South
Korea and Asia. This role involves
managing a direct marketing team,
plus agencies and suppliers across
Korea and Asia.
PROMOTIONS
In charge of executing marketing
campaigns inline with the national
promotional rollout including the
coordination of the print, TVC’s,
LSM and point of sale work and
managing the advertising and
production budgets.
COMMUNICATIONS
Responsible for the management of
Red Bang’s internal and external
communications materials,
including the execution of PR plans,
investor relations, media releases
and media statements locally and
nationally. Additionally the team
works closely with the digital team
on all of Red Bang’s Social Media
Platforms
Aus Liebe Zur Wurst

>
DIGITAL
In charge of executing online
marketing campaigns including
updating the iPhone, website and
eStore (online ordering), creating
eClub emails, social networking
strategies and liaising with other
departments. Improves usper
experience overall.
PRODUCT DEVELOPMENT
Responsible for driving product
development at Red Bang’s by;
developing, testing and tasting
new products and enhancing the
current menu.
PRODUCT & SALES ANALYSIS
Provides day to day analysis of
pricing, promotions and products.
Manages research and analytical
projects to provide in depth
insight and analysis to corporate
management and franchisees in
order to assist in key strategic
decision making.
The True Bestseller
From Germany

1st STEP: CHOOSE YOUR SAUSAGE
2nd STEP: CHOOSE YOUR SPICE LEVEL
3rd STEP: CHOOSE YOUR SIDE DISH
4th STEP: CHOOSE YOUR DRINK
FINALLY: ENJOY YOUR BRATWURST!
Currywurst…………8,000₩
Thüringer…………...8,000₩
Frankfurter……….....8,000₩
Debreziner………....8,000₩
Currywurst…………8,000₩
Wiener……………...8,000₩
Nürnberger………...8,000₩
Debreziner………....8,000₩
Countrypotatos..…5,000₩
Cucumber Salad...5,000₩
Pastasalad………...5,000₩
Mixed Salad…….....5,000₩
Countrypotatos..…5,000₩
French Fries...……....5,000₩
Pastasalad………....5,000₩
Potato Salad...….....5,000₩
Banana Weizen..…8,000₩
Alster...……………....8,000₩
Aperol Spritz.……...8,000₩
BeHugo…….……....8,000₩
Afri-Cola sug.free..3,000₩
Bionade…………....3,000₩
LemonAde………..3,000₩
Weizen…………..…8,000₩
Pils...…………….…...8,000₩
Helles.……...................8,000₩
Gaffel Kölsch……...8,000₩
Afri-Cola…………..3,000₩
Fritz cider…..……....3,000₩
Fassbrause.………..3,000₩

>
Health Conscious
Red Bang® reflects our passion for
the sausage and high quality in
every offered product. Our products
are delivered only by select local
suppliers that strictly adhere to the
recipes and guidelines of Red Bang®.
Sustained quality, controlled
cultivation, respective breeding and
absolute freshness are guaranteed.
Red Bang® differentiates itself from
all the other fast food restaurants in
Korea, by bringing German quality
food, variety and taste back into the
fast food business.
Our Sausages
Our sausages are low-fat but still full
of flavor. Red Bang® believes that
sausages can be delicious as well as
low in fat. The best example: Our
chicken sausage is made with real
meat but contains less than 3% fat - a
world record! Our customers can
choose between five variations of
sausages: original sausage (Pork),
Veal sausage, Beef sausage, Poultry
sausage and low-fat sausage.
Product Information

>
Our Curries
We have 8 different options of
curry for our customers. Ranging
from "very mild" to "extremely
hot“, everyone will find a
favorite curry.
Best of all, curry is a very
healthy spice! Our absolutely
unique spice blends contain
hibiscus flower, cardamom,
jasmine flower, vanilla, orange
zest, lemongrass, cinnamon
flower, ginger, garlic, curcuma,
paprika, and chili.
We abandon flavor enhancers
and artificial aromas to give
our customers a truly pure
pleasure.
Our Spices Can
Delight You Or
Make You Sweat

>
Our Sauces
Red Bang® offers their original sauce
that is a sensation for your taste
buds. Seasoned after a secret recipe,
the tomato sauce is the foundation
for our curry variations.
Alternatively, we offer a natural
currysauce - made from pure
tomatoes puree and strained organic
tomatoes, without any flavor
enhancements.
Our hot currysauce will be the
challenger for everyone who wants
to try it out. Just a few can withstand
the hot and spicy “Korean Dragon”
Are You Ready To
Meet The Korean
Dragon?

>
Quality Conscious
The taste of fresh German sausage is unmistakable.
Red Bang® works with selected butchers to prepare
and refine its sausages with delicious sauces.
The dishes match to a contemporary, German cuisine.
“Natural and fresh products of the highest quality to
a fair price”
Behind Red Bang® are German founders.
It all started with the passion for German sausages -
especially the Currywurst- a clear vision and a committed
team.
Red Bang® participates in the fresh sausage market and
builds a solid company- and infrastructure.
Fresh & Tasty
Quality Products

THE BANGER
Product Concept
SLICED SAUSAGE
WITH CURRYSAUCE ON TOP
SELECT CURRY OF YOUR CHOICE
FROM 1 TO 8
+1 BUN OR FRIES

THE BRATProduct Concept
SAUSAGE IN ONE PIECE
ON A BUN WITH TOPPINGS
RED & GREEN PEPPER
GLACED ONION
SAUERKRAUT
KIMCHI

THE BELGIAN
Product Concept
THE SPECIAL FRIES
SELECT SAUCE OF
YOUR CHOICE FROM
CURRYSAUCE TO
MAYONNAISE

THE MASHER
Product Concept
MASHED POTATOES WITH
GLACED ONIONS
BACON
SPICES

THEORIGINAL
Product Concept
POTATOE SALAD WITH
GLACED ONIONS
MAYONNAISE
BACON
OPTIONAL:
WASABI, KIMCHI

THE KRAUT
Product Concept
COLE SLAW SALAD WITH
WHITE CABBAGE
DRESSING
KIMCHI
ONION
APPLE

THE ORIGINAL
BREZEL
Product Concept

LONG JOHN
Product Concept
BOCKWURST WITH
BAGUETTE
MUSTARD
KETCHUP
+ SODA

THE KRAKAUER
ProductConcept
KRAUKAUER WITH
A ROLL
KETCHUP
MAYO
+SODA

THE MEATBALLProductConcept FRIKADELLE WITH
POTATO SALAD
OR FRIES
MUSTARD; KETCHUO
+SODA

THE WIENER
Product Concept
SCHNITYEL WITH
POTATO SALAD
OR FRIES
MUSTARD; KETCHUO
+SODA

LONG JOHN SET I
BOCKWURST WITH
NOODLE SALAD
MUSTARD; KETCHUO
+SODA

LONG JOHN SET II
Product Concept
BOCKWURST WITH
POTATO SALAD
MUSTARD; KETCHUO
+SODA

>
HOT CURRYSAUCE WILL CERTAINLY DO ITS JOB
MENU
ALWAYS SHOULD
PUSH BEVERAGES

>
Average Quick-
Service-Restaurant
Food costs 26-32%

>
Average Quick-
Service-Restaurant
Food costs 26-32%
MC DONALDS & BURGER KING 26%-27%38% OF FOOD SALES
ARE TO-GO
TAKE OUT IS A $160 BILLION DOLLAR INDUSTRY

>
Red Bang® focuses on a consciously
manageable, well-thought dish
assortment with aromatic sauces.
>We offer the best snack from
Germany supply and enrich the
Korean snack culture. We let others
make Burgers or bake Pizza.
>The funding depends on your
equity, is managed individually and
also can be supported with leasing.
Entry & Goals

>
>Store Floor Area: 40 m² - 80 m²
>Capital requirements: ₩76 mio. - to ₩110 mio.
>Details:
Initial Franchise Fee ₩ 12 mio.
Fit Out-/ Renovation ₩ 15 mio.
Fittings ₩ 45 mio.
Outdoor Advertising ₩ 2.5 mio.
Initial Order ₩ 1.5 mio.
>Ongoing Franchise Fee: 7% of gross sales weekly
>Advertising Fee: Maximum 6% of sales towards
national advertising
>Trading Hours:
Opening hours are typically seven days a week from
10:00 am to 4:00 am (Sun – Thurs) and
10:00 am to 06:00 am (Fri – Sat)
>Investment required:
Varies dependent upon individual circumstances including;
landlords site contributions, size of the premises, level and
type of equipment and can range from ~ ₩ 70 mio. – ₩110
mio.
Franchise Model Grab

>
Allocation Of Cost Small Store Time Of Payment
Franchise Fee
Fit Out-/Renovation
Fittings
Outdoor Advertising
Initial Order
Monthly Franchise Fee
Estimated Investment
₩ 12 mio.
₩ 15 mio.
₩ 45 mio.
₩ 2.5mio.
₩ 1.5mio.
5%
₩ 76 mio.
On signing the contract
Installments during the
construction phase
When ordering the fittings
See above
Within 2 weeks after ordering
15th of the following month
Allocation Of Cost Medium Store Time Of Payment
Franchise Fee
Fit Out-/Renovation
Fittings
Outdoor Advertising
Initial Order
₩ 12 mio.
₩ 22 mio.
₩ 52 mio.
₩ 3 mio.
₩ 2 mio.
5%
₩ 91 mio.
construction phase
See above
Allocation Of Cost Big Store Time Of Payment
Franchise Fee
Fit Out-/Renovation
Fittings
Outdoor Advertising
Initial Order
₩ 12 mio.
₩ 30 mio.
₩ 60 mio.
₩ 4.5mio.
₩ 3 mio.
5%
₩ 109 mio.
construction phase
See above

Red Bang Small Store
Break Even is to be expected within the first 7 months

Assumptions

Fixed Cost

Investment Plan

Pricelist

Key Points
• Space requirement: 40m2 to 80m2
• Classic franchise concept
• Store concept with minimal staff effort
• Fresh, speed and cleanliness are based on the
concept
• Simple processes and workflows
• Low cost of goods
• German casual, modern kitchen
• Sophisticated marketing concept with continuity and
substance
• Expansion options
• Uniqueness in “take out” business and “Curry
Challenge”
• Company focuses on continuity, not shareholder
value
• No air infrastructure needed no odor emissions
• Unique marketing presence with Red Bang® concept
• Young, unique and innovative

Contact
Red Bang Co,. Ltd.
Gangnam-Gu
Seoul
South Korea
Tel. +89 20 9123 8452
Fax. +89 10 3103 8519
Email:info@redbang.com
Hompage:www.redbang.com

For more information see the financial plan in the appendix
Thanks for your attention

The Franchise Proposal

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The Franchise Proposal