Closure of a local burger place loved by Korea University students

Closure of a local burger place loved by Korea University students. July. 29, 2015 07:15. hyuk@donga.com.

There is an unforgettable place for Park Sang-hyeok, who graduated from Korea University in 2012, which reminds him of memories from college. It is "Yeongcheol Burger," a local burger house at the back gate of the school of politics and economy at Korea University in Anam-dong, Seoul. The 29-year-old, who had lived close to the school for two years, had Yeongcheol burgers at least once a day. Even after graduation, Park dropped by the burger house to recall old memories whenever he needs to go near the school. “You can have a burger and a cup of coke for 1,000 won (approx. USD 0.85). The burger house was like a school cafeteria for many less affluent students,” said Park.

Yeongcheol Burger, which was loved by Korea University students and local residents as a specialty of the university, has gone out of business. Severe financial difficulties have led the local burger place to shut down earlier this month. The closure came 15 years after Lee Yeong-cheol, the owner of the burger house, started making burgers on a street stall in 2000.

By selling burgers at 1,000 won, Lee raised brand awareness and developed Yeongcheol Burger into a nation-wide franchise brand. The number of affiliates once reached 80 across the nation and Lee was nicknamed as a "legendary street food vendor." As his business took off, attentions were paid to Lee who was an elementary school drop-out from a poor family. Lee consistently made donations including the scholarship to Korea University as a token of gratitude for being a strong base for his business.

However, Yeongcheol Burger started facing financial challenges from the late 2000s. Lee stuck to 1,000 won for his burgers despite the rise in prices, which was one of the reasons that put his business into a downward spiral. His franchise affiliates lost ground in the market by aggressive marketing from fast food chains and the advent of high-end hand-made burgers amid the well-being trend. In 2009, Yeongcheol Burger launched hand-made burger priced at 4,000 won as a part of the premium marketing. But the customer response was lukewarm. Due to growing deficit and financial difficulties, affiliates closed one by one and lastly, the headquarter in Anam-dong also closed early in July.

Students and local residents expressed regrets at the news. “The Yeongcheol Burger CEO showed great affection to Korea University by making donations to the school and providing burgers for festivals. I feel sorry for (the closure),” said Kwak Hye-yoon, a 26-year-old Korea University student.

Some students say it is an inevitable result caused by a failed business strategy. Korea University student surnamed Lee, 25, said, “Students turned their backs from Yeongcheol Burger when it raised prices. As there are many food stores that sell similar snacks, the burger place had to go out of business since it failed to suit the taste of students.” An official from the Anam Merchant Association said, “Competition has increased since similar small food stores gathered in a small business zone. While other shop owners around the school are suffering financial difficulties, Yeongcheol Burger, which had been in the district for a long time, went out of business.”