Franchise God - Chapter 52
Only Krnovel
Franchise God Episode 052
Chapter 11 Why is Mom there? (2)
“Congratulations. I heard it’s selling like hotcakes.”
“thank you.”
“You said this ramen is made with a lot of golden umbrella mushrooms? I like those mushrooms too.”
“You’re a mushroom fanatic, aren’t you? Of course, you like pine mushrooms the best.”
“Matsutake mushrooms are better for their own flavor, but in soups like ramen, yellow oyster mushrooms are much better. The compatibility is also like that.”
Jeong So-hee felt happy because of Makemiya’s compliment.
“But is the price okay? I bet the price of yellow oyster mushrooms isn’t cheap…….”
“These are mushrooms that CEO Ha Su-yeong personally grows. He has succeeded in drastically lowering the cost of cultivation.”
“okay?”
“Yes, even if we sell them for a thousand won, we still make a lot of profit. Of course, this is thanks to President Ha Su-yeong who supplies the mushrooms at almost the cost price.”
“Then, without that person, the ramen business wouldn’t be able to run.”
“Yes. So, even though he only invested 6.5 billion won, he owns 85% of the shares.”
“85%? Wasn’t CEO Jeon Seong-ryeol at 49%?”
“Ultimately, it has already been discussed that President Jeon Seong-ryeol’s stake will be adjusted to 10%. President Ha Su-yeong made the biggest contribution by providing cheap Hwangbi mushrooms.”
“It’s still surprising.”
Makemiya stuck out his tongue and then suddenly asked.
“So that’s why you didn’t start a separate business and went into investment management.”
“Yes, I saw tremendous potential.”
“You’re still allowing me to include you with such items.”
“She liked the business plan I prepared, but I think it was also important that she was the daughter of JM Foods. She thought that if JM Foods was behind her, it would be easier to block other companies’ attempts.”
“Oh, by the way, I’m behind you too.”
“You two bosses don’t know that I’m behind you.”
Makemiya laughed and then asked again.
“President Ha Soo-young doesn’t participate in management? It seems like he doesn’t have any specific position within the company.”
“Not at all. As the owner, I sometimes nag the staff, but I don’t really interfere with the management itself. I even drew a line from the beginning, saying that management is not under my jurisdiction.”
“What a strange friend you are.”
“CEO Ha Soo-young said he just loves plowing the fields, growing mushrooms, and smelling the soil in the fresh air of the mountains. He said he doesn’t want to get involved in complicated relationships like management.”
“It’s amazing that a young friend of mine already thinks like an old man who has lived through everything in the world.”
Makemiya put the fragrant grilled pine mushrooms in his mouth and asked again.
“But how did they lower the cultivation cost?”
“They said they can’t tell you because it’s a trade secret. In fact, even CEO Jeon Seong-ryeol has never seen the process of growing mushrooms.”
“Hmm.”
“My grandmother sold Mt. Seorak. She put up a barbed wire fence there to keep anyone away and grew mushrooms there. The barbed wire was probably 4 meters high, right?”
“Considering the time when President Ha bought that mountain… it seems like he was already planning to sell the yellow birch mushrooms back then?”
“that’s right.”
“It’s strange that a friend with that level of business sense isn’t actually interested in business.”
“I also often feel like I can’t figure him out. Sometimes he seems like a man his age, other times he seems like an experienced businessman, and so on.”
Makemiya looked on quietly at the tone that seemed to be praising him.
‘Is this it?’
“Why are you looking at me like that?”
“Oh, no. By the way, we’ve been talking about work too much. How are things going with Jinseok these days?”
“…….”
When the story of Makemiya’s son, Jeong Jin-seok, came up, Jeong So-hee’s expression hardened slightly.
At least at the dinner table I didn’t want to talk about that tasteless guy.
“Sir, when we’re alone, can’t we just talk about business investments? We’re supposed to meet Jinseok again tomorrow anyway.”
“Oh, I was reckless. I’m sorry.”
I can’t let my precious daughter-in-law run away.
Makemiya quickly apologized as if nothing had happened and returned to the original topic.
“We’ve pretty much taken over the ramen market. Now we’re going to set up a full-fledged food research and development department and start operating it. There’s a line of people around us who want to join us.”
“What do you expect your sales to be this year?”
“I don’t know. But I think it will easily exceed 700 billion won. We didn’t start in January.”
“We’ll easily hit 1 trillion won next year. How much will the profit be?”
“It’s about 8%.”
Makemiya opened his eyes wide and exclaimed,
“It’s higher than I thought. JM Foods’ profit margin is…”
“It’s around 6%. Taeyangsim is around 4 or 5%. I guess that’s because they spend a lot of money on promotion and advertising.”
“That’s great.”
“Actually, other than filming the CF with actress Jang Hyo-joo and airing the TV commercial, we don’t have any other expenses. Since the products sell out as soon as they are put in the market, we don’t have to spend money on promotional expenses either.”
“One yellow oyster mushroom really hit the jackpot.”
“If it weren’t for that person, this business would never have been this successful in the first place. These days, I’m ashamed of myself for being so confident in business.”
Makemiya smiled faintly.
“Don’t be so humble. I thought your plan was good. If you added my support to it, it would have worked out well in the end.”
“But it definitely can’t reach the current level, right? Isn’t it?”
“Honestly, that’s true. The use of the yellow truffle was such a fraud. Don’t other ramen companies have no chance of competing?”
Jeong So-hee said with an expression that seemed to make her happy just thinking about it.
“Still, there’s one thing I’m thankful for, Jinseok.”
“What is that?”
Makemiya asked with shining eyes as if he was going to lean in.
Has our prospective daughter-in-law finally developed a romantic attraction to our son?
“Thanks to Jinseok, my father and brother don’t know at all.”
“what?”
“I am the Vice President of Prime Company.”
“So, what?”
“Yes, I’m so focused on meeting Jinseok that I don’t even know what my daughter is doing. If I just made one phone call, I would know right away.”
Jeong So-hee added with a shrug.
“I guess this is what they mean by darkness under the lamp. It’s just fun to watch.”
“When do you plan on revealing it?”
“Are we just going to keep staying like this?”
“Jaemin will get hurt later.”
“Father, you can be hurt a little. I’ve been hurt so much over the years.”
The idea is to just keep quiet until they find out first.
“These days, my father is probably worried that he and my brother sold the old factory for nothing and that he only helped raise strong competitors. It’s really funny when you listen to him quietly.”
“They say that if a daughter-in-law harbors resentment, frost will fall in May or June.”
“I’m not your daughter-in-law?”
“A daughter who is like a daughter-in-law, or a daughter-in-law who is like a daughter. I like either one.”
* * *
“We jumped into this with that in mind from the beginning. We calculated that we could sweep away the ramen market.”
In front of his father and JM Foods CEO, Jeong Jae-min, Managing Director Jeong Seo-jin made his argument with a stern expression.
“Sales have already exceeded 60 million units. Even if we lose 5,000 won per unit, that’s a loss of 300 billion won.
“There’s no way a company with capital of 26.5 billion won could afford that.”
“Yes, let’s say you got the yellow birch mushrooms at a cheap price. Then, aren’t you selling them at a slight loss right now?”
“Father, stop playing the happiness circuit. Those guys are clearly selling while leaving a margin. If not, then it’s time to start reducing the quantity and raising the price so that there is enough inventory.”
“…….”
“But there’s no sign of that at all. There’s no sign of raising prices or reducing quantities. Rather, they’re increasing shipments as if they were waiting for the market share to surpass half.”
“Are you sure?”
“I’m absolutely not selling it at a loss. There is a route to get the yellow birch mushrooms cheaply. Please take a look at this.”
Jeong Seo-jin explained, handing over a summarized report.
“Not long ago, Seohae Foods purchased 100 tons of Hwangbi mushrooms from a single distributor.”
“A single distributor? We could never have known about a supplier like that.”
“It’s not that big of a company. It was originally a small agricultural product distribution company with annual sales of about 9 billion won. It’s called Seongryeol Distribution Co., Ltd.”
Jeong Jae-min searched his memory for a name that sounded familiar.
Jeong Seo-jin provided additional explanation.
“This company became famous for its stable supply of pine mushrooms even when they were not in season.”
“Oh, I remember. I think Seongjin (Makemiya’s Korean name) said that once.”
“……father.”
“why?”
“The company that bought our old factory was Seongryeol Distribution. Did you forget?”
“…….”
It’s a deal worth only 4 billion.
Since Jeong Jae-min wasn’t particularly interested in who bought the old factory, he forgot about it even after receiving the report.
They were satisfied with just selling the old factory that was a headache, and did not put much stock in the name of Seongryeol Distribution.
Moreover, the name of the new company that swept the market with Hwangbi Mushroom Ramen was a completely separate company called Prime Company.
“Seohae Foods purchased 100 tons of Hwangbi mushrooms from Seongryeol Distribution?”
“And Sungryul Distribution bought our old factory and established a new food company called Prime Company. To be exact, it was the owner of Sungryul Distribution who did it. Even now, the two are separate corporations.”
Jeong Jae-min seemed to finally see the blueprint.
A distribution company with the ability to supply 100 tons of yellow oyster mushrooms at once created a ramen food company and is making and selling ramen noodles laden with yellow oyster mushrooms?
“Does this mean that Seongryeol Distribution succeeded in mass producing Hwangbi Mushroom Ramen, or rather, in reducing the production price?”
“Look at the situation. There is no other explanation. Of course, we will have to look into it in more detail separately.”
“Wow, that’s ridiculous. How difficult is it to grow yellow oyster mushrooms? It costs a lot of money to create an environment in which they can grow well. Do you just create an environment and that’s it? The money that goes into growing and managing them is not small either.”
“I know that too. Even if you put two in a pack of ramen and sell it for a thousand won, it’s hard to lower the unit price enough to make a profit. It would be worth it to lower the unit price by at least a hundred times.”
Although it is not as good as pine mushrooms, it is not treated as a high-quality ingredient for nothing.
The price of 100,000 won per kilo is too high for ordinary people to afford.
“Seojin-ah, look into it carefully. Find out whether Seongryeol Distribution has really succeeded in lowering the cultivation cost, where the mushroom farm is, and anything else you need to know.”
“I have already instructed you to do so. I am also waiting for the information to come in.”
“Good job. What about other companies?”
“It seems like most of them haven’t figured out the situation yet, but we can’t let our guard down. Especially since Seohae Foods bought 100 tons of Hwangbi mushrooms. Taeyangsim may have information faster than us.”
“Perhaps the fact that Seohae Foods purchased 100 tons of yellow oyster mushrooms was a sign of far-sightedness. There’s no way a subsidiary wouldn’t know what its parent company did.”
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