CJ Foodville, the franchise business unit of local food giant CJ Group, announced Monday it would limit the number of its Tous les Jours chain bakeries to meet people’s demands for shared growth with smaller bakeries.

The decision ― the first of its kind ― by the nation’s No. 2 bakery chain came amid intensifying disputes between bakery chain stores owned by conglomerates and mom-and-pop shops in the same neighborhood.

Conglomerates’ bakery chains, armed with price competitiveness based on mass production and celebrity marketing, have been booming nationwide in recent years, pushing many smaller ones into bankruptcy.

As of last year, the number of Tous les Jours stores was 1,281 compared to 3,095 of the No. 1 bakery chain Paris Baguette operated by SPC Group.

Following the demand by the Korea Bakery Association, CJ said it would maintain the current number of stores, predicting some negative impact both in the fierce street rivalry with SPC and future profits.

“The decision was made in order to fulfill our social responsibility for shared growth despite some loss in profits,” said CJ Foodville CEO Heo Min-heoi.

Instead of limiting operation in Korea, he said the company would further step up efforts for the global success of its franchise business.

Currently, Tous les Jours, which is the No. 1 bakery brand in Southeast Asian countries such as Vietnam, is eyeing to expand its presence in China and the United States.

“We aim to increase the number of stores to some 4,000 globally to become a global franchise chain such as McDonald’s and Yum!,” the CEO said.

Other than the bakery chain, CJ Foodville is spreading four homegrown brands, including bibimbap chain Bibigo, steakhouse VIPS and specialty coffee chain A Twosome Place, to 10 countries globally.

By Lee Ji-yoon (jylee@heraldcorp.com)