Smoothie King Korea – operated by Shinsegae Food – is set to shut down its operations after failing to extend its licensing contract with the US brand owner.

The cafe chain entered the country in 2003 with a store in Myeong-dong and peaked at 305 locations in 2021. An estimated 90 stores remain in operation this year, down from 169 last year. 

Despite its previous success – accounting for 18 per cent of the franchisee’s global sales in its prime – Smoothie King South Korea has struggled to maintain its earlier momentum. 

The brand’s revenue in South Korea has been steadily falling, from US$6.1 million (8.2 billion won) in 2021 to $5.1 billion (6.7 billion won) in 2022 to $4.6 (6.1 billion won) last year. 

“We have been in prolonged negotiations with the US headquarters over the business rights in Korea, but we could not agree on contract renewal terms and received a request to terminate the contract,” said the company. 

Shinsegae said it plans to assist franchisees in transitioning to other brands within its portfolio, with each franchisee receiving separate consultations to explore their options moving forward.

Founded in 1973 by Steve and Cindy Kuhnau, Smoothie King is an American privately held company that operates a chain of retail stores specialising in smoothies.