Recession Thrivers: How the TaKorean Business Model Positions Owners To Succeed Despite Economic Conditions

TaKorean, the emerging Korean-inspired taco concept, has laid the foundation for recession resistance in its processes and operational systems. As talks of a recession swirl, TaKorean owners are confident in their ability to survive through a recession and thrive despite it.

“Our system allows for the cross-utilization of employees, we’re able to operate at a lot of different volume levels with similar payroll metrics, and our ingredients and cooking methods yield little to no waste,” explained Mike Lenard, CEO of TaKorean. “When we’re facing a constantly changing business environment, we’re able to succeed because our entire approach is built to adjust and adapt to varied needs on a daily basis. We do it all of the time.”

A prime differentiator for TaKorean owners is the sheer level of advancement available within the systems. Since its inception, TaKorean has been ahead of the times. At its birth, it brought Korean-inspired dishes to a food scene that had yet to see such offerings, and it has since made the transition from a food truck model to a brick-and-mortar one.

When the COVID-19 pandemic arose, the leadership team was not left scrambling to adapt as it had already perfected its unique offerings and laid the groundwork for multiple streams of revenue that would continue to drive business through shutdowns and restrictions.

Similarly, with a recession on the horizon, the brand’s leadership is not left scrambling to reduce costs, increase efficiencies or strategize ways to maintain restaurant-level traffic. Rather, it developed all of these resources and methods before they were necessary, meaning that franchisees can invest confidently, knowing that the business plan provided will guide them through times of uncertainty --- as it has been proven to do in the past.

“We have put so much emphasis on building up our systems; we are one of the few restaurants that have integrated our processes into our systems so well,” explained Lukas Umana, president. “The pandemic happened, and we were able to reopen. Nothing changed for us. People began to struggle with labor and supply chain, and our simplicity kept us from having those issues. While everyone else is trying to catch up, our business trucks along every time.”

A substantial amount of cost control occurs in TaKorean’s ingredient list and sourcing. With just 22 perishable items kept on hand and a thoughtful ordering approach, there is nearly zero spoilage that occurs inside the restaurant, minimizing losses.

Additionally, TaKorean leverages a small-batch cooking philosophy which maintains the best flavors for guests while allowing staff to control production based on demand.

“At the end of the night or during slower periods, we’re able to control the amount of food we make, so there is little to no waste on a daily basis,” Lukas added.

“At moderate volumes, or even low volumes, you’ll never have an issue selling through your inventory,” Mike added. “Every time you order, you can adjust to whatever the trends may have been the prior week and order less or more of each ingredient. The way we order food makes it virtually impossible not to sell through everything before it goes bad.”

Eric Lenard, director of development, proceeded to explain how this model contrasts with more traditional restaurant approaches. In some cases, a single restaurant will order 20 pounds of a given ingredient that absolutely must be sold within a few days. If no one ordered that entree, the chef is left to improvise or cut their losses.

“That sort of dilemma just isn’t in our model,” he said.

While TaKorean’s back-of-house model positions owners well for success, what it offers to guests serves to maintain or even increase unit-level volume during times of uncertainty. A visit to TaKorean provides not only consistency and dependability to guests, it also allows couples and families to go out for a reasonably priced meal and feel that they still had an experience. In a recession, as guests are seeking value in their purchases, TaKorean provides just that by combining new flavors, fresh, colorful food, customizable offerings and the feeling of trying something new into a single meal.

“The experience we offer is a special one, certainly at our price point,” Mike added. “Because of this, during a recession, we can actually end up being busier than one might think, which requires us to be nimble — a trait that has long been established. There are certain businesses that will thrive during a recession and need to have the mindset of being prepared to ramp up operations when the time comes, and TaKorean absolutely falls into that category.”

On all fronts, TaKorean offers value. For franchisees, an affordable initial investment provides access to a robust support system and operational playbook that has been optimized over time. As guests realize the uniqueness of the concept and experience, demand is driven up further, drawing in additional volume, creating repeat consumers and driving owners’ revenues up further.

“Dependability and consistency are what people need for our concept to become a go-to spot,” Lukas said. “And that’s what we provide. People know they’re going to get a delicious, consistent meal from us every single time, and that is all thanks to our systems.”

TaKorean, a fast-casual Korean-inspired concept with Latin-American influence, was founded by Mike Lenard in 2010 to bring a fresh twist on Korean flavors to the Washington, DC food scene. Its “build your own” bowl and taco concept allows guests to create memorable meals, catered to their specific preferences by combining the restaurant’s colorful, fresh, and delicious ingredients. Originally founded as a mobile vending concept, Lenard and his team have grown the brand into a local chain of brick-and-mortar locations and, as of 2022, are eager to offer the opportunity to franchise the concept.

The investment required to open a TaKorean restaurant ranges from $215,500–$781,500, including a $40,000 franchise fee ($20,000 for veterans). Visit www.takoreanfranchise.