The Rebellion of Local Bakeries… 'Sungsimdang' Surpasses 193.7 Billion Won in Sales Last Year

Sungsimdang, a representative bakery in Daejeon, recorded its highest sales ever last year, achieving higher operating profit than the large franchise brand Tous les Jours for two consecutive years.

According to a financial disclosure by the Financial Supervisory Service on the 5th, Sungsimdang's sales for 2023 reached 193.7 billion won, a 56% increase from the previous year (124.3 billion won). During the same period, operating profit also rose to 47.8 billion won, marking a 50% increase from the previous year (31.5 billion won).

Sungsimdang's sales growth has shown a steep upward trend in recent years. Sales, which were only 48.8 billion won in 2020, increased to 62.8 billion won in 2021, 81.7 billion won in 2022, and surpassed 124.3 billion won in 2023, marking its first year to exceed 100 billion won in annual sales.

In terms of operating profit, Sungsimdang has outperformed the franchise industry. Its operating profit increased from 15.4 billion won in 2022 to 31.5 billion won in 2023, surpassing CJ Foodville (21.4 billion won), which operates Tous les Jours, for the first time.

Last year, CJ Foodville's operating profit was 29.86 billion won, widening the profit gap with Sungsimdang. As of the end of last year, Sungsimdang had 16 stores, while Tous les Jours had over 1,300 locations.

Sungsimdang, which started in Daejeon in 1956, has grown while maintaining its local roots for a long time. The opening of a branch at Daejeon Station in 2012 marked its leap into a 'national bakery', with signature products like 'Fried Soboro' and 'Pantalong Chives Bread' becoming essential purchases among tourists.

Subsequently, during Pope Francis's visit to South Korea in 2014, Sungsimdang's ciabatta and baguette were featured for breakfast, further enhancing the brand's awareness.

Recently, seasonal limited cakes like 'Strawberry Shiru' and 'Mango Shiru', filled with seasonal fruits, have gained immense popularity, leading to a phenomenon of 'open run' with customers lining up even before the opening. These products are praised for their hotel-grade quality, all for under 50,000 won.

Sungsimdang adheres to the principle of not opening stores outside Daejeon and is also known for donating all leftover bread according to its 'produced on the same day, sold on the same day' policy.

This operational philosophy and regional identity have transformed Sungsimdang into a cultural landmark rather than just a bakery. Sungsimdang has been selected as part of the Ministry of Culture, Sports and Tourism's 'Local 100' and has received the 'Local Culture Award', which is only granted to three venues.

Image source: Sungsimdang Daejeon Station Branch / News1, Instagram 'sungsimdang_cakebouique', Photo = Insight