Restrictions on opening new stores for major bread franchises eased, but effectiveness of protecting small and medium-sized stores is questionable = South Korea

The Korea Partnership for Shared Growth has decided to end the confectionery business symbiosis alliance, which restricts the expansion of franchised bakeries by large corporations into areas where small and medium-sized bakeries are located, by 2020.
The government announced that it would extend the ban until August 6, 2019. In addition to SPC Group's Paris Baguette and CJ Foodville's Tous Les Jours, The Born Korea's Baektabang Bread Research Institute has also been affected.
New restrictions on store openings have been put in place. According to the agreement, large FCs can open new stores each year within 5% of the number of stores at the end of the previous fiscal year. In the case of the Tokyo metropolitan area, new store locations are limited to small and medium-sized stores.
The new regulation has relaxed the previous limit of 500 meters to 400 meters from the confectionery shop.
The company explained that by 2019, the number of businesses operating bakeries had increased from 13,577 to 28,070. Therefore, the partnership is expected to help improve sales at small stores with fewer than five employees.
On the other hand, some believe that deregulation will not bring about any change in the market. A variety of distribution channels, such as online stores, convenience stores, and coffee shops, are selling products at the same level as confectionery shops,
This is because consumption patterns are becoming more diverse. An industry insider said, "Even if the store opening limit is relaxed to 100 meters, it will not have a significant impact on the increase in small stores."