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Chocolateria San Churro opens Korean outlet

Sarah Stowe

Melbourne-based food franchise Chocolateria San Churro has stepped into the international scene with a store in Seoul, South Korea, just four years after the company opened the doors to its first outlet in Fitzroy.

The Korean launch has taken more than 18 months of planning and research and Mark Attard, CEO of Chocolateria San Churro, told Franchising it will be the springboard for the region.

“We’ve had a few enquiries from Asia, particularly China. But we did our due diligence and found Korea was a style leader that China looks to for trends in new fashion and eating styles.

“We pulled out of a deal with China to set up this joint venture. Koreans are quite savvy about coffee and a chocolate cafe seemed the next logical step. It’s an opportunity to be a category leader.”

Three or four stores are planned for this year and Attard confirmed there is room for the brand to grow beyond Seoul through a master franchise arrangement.

“Companies are quite conservative in their approach and want to see the business in place. So we’ve put our money where our mouth is.”

The Korean joint venture partner is running the new store like a franchise to prove the model works, explained Attard.

The new outlet incorporates the design changes unveiled in the latest stores open in Victoria’s Southland, and Subiaco and Leederville in Western Australia.

Chocolateria San Churro has 21 outlets across Western Australia, Victoria, New South Wales and Queensland, with plans for another five this year.

And expansion is not limited to these shores. Attard said sites in New Zealand have already been earmarked and India is the next major overseas development, later in 2010.

“The master franchise has been sold in India,” he said. “There is one site planned in Bombay and an office in Science City Road in Ahmedabad, in a new retail precinct, an affluent area.”