The fortune of the famous South Korean chef Paik, who is called the second Gordon Ramsay, is falling. One of the reasons was the false labeling of ingredients for dishes as "local production" in his flagship restaurant chain. This is reported by UNN with reference to Bloomberg.
According to the publication, the restaurant chain, which has about 2,900 outlets, has been accused of violations related to the incorrect labeling of some ingredients as local products.
According to the publication, online petitions from citizens last month led to a police investigation.
Although the company did not respond to an email requesting comment on the situation, Paik and she apologized.
"With top priorities in ethical management and food safety, we are conducting a complete overhaul of both the internal system and external facilities," the company said in a statement last month.
As apologies failed to build confidence, judging by the state of affairs with share prices, the chef last week said he would not sign any new television commitments to focus on his business – the restaurant business.
The chain of establishments is trying to regain trust with discounts
Founded in 1994, the restaurant chain offers affordable menus and a relaxed atmosphere. The company owns about 25 brands, including New Maul Restaurant, Hong Kong Banjum and Paik's Coffee.
Due to the recent events and Paik's difficult situation in connection with the damage caused to the franchise, the company offered visitors a temporary 50% discount on its menu to regain customer loyalty.
Thanks to which Paik became famous
Local media have dubbed Paik the South Korean Gordon Ramsay. He took advantage of the success of the Netflix series "Culinary Wars" and in November made it into a blockbuster, which brought him a listing on the shares.
The famous chef also created a following of 6.6 million for his YouTube channel, which publishes food-related videos, from simple recipes that can be recreated at home to trips abroad in search of local cuisine. His popularity has grown thanks to a growing presence in various television cooking shows.
Currently, Paik Chong Won owns 60% of the shares of The Born Korea. Today, this share is estimated at approximately 245 billion won ($174 million), which is less than half (43%) of the peak figure recorded shortly after the listing.