We Do Business In Full Auto [EN]: Chapter 81

Full Auto Business 081

081

The Power of Labor Costs (1)

“CL Convenience Store? The price seems quite steep.”

“Opening a new convenience store brand in this country is practically impossible. Do you know why?”

“Isn’t it due to brand recognition?”

“Hahaha. Exactly. It’s about brand recognition. The ‘Big 3’ convenience store brands have a strong hold on the market. In reality, new convenience store brands keep popping up, but they often close down within a few months. That’s why even large corporations that everyone knows have entered the convenience store business only to incur massive debts and cut their losses.”

“I’m aware of that.”

“If you have a knack for business and want to try your hand at convenience stores, approaching CL Group is the best way to go.”

“Is that information reliable?”

“I’m a founding member of H Group. Most high-level information comes to me. CL Group is currently considering selling their convenience store business.”

“Is there a reason for that?”

“They’re accumulating debt and operating at a loss, so it’s only natural.”

“Debt… Why is that?”

“Do you know CL Group’s corporate philosophy?”

“Transparency and integrity.”

“Exactly, that’s the reason.”

Director Han Cheol-soo explained the dilemma that CL Group was facing.

There were loss-making businesses in other sectors as well, but focusing on convenience stores, the problem was the losses from directly managed stores and the company’s policies.

Convenience stores are largely divided into several structures, based on profit-sharing arrangements depending on the initial investment.

Convenience store owners could invest anywhere from no capital to over 50,000,000 KRW [approximately $37,000 USD], and the profit structure was divided accordingly.

In addition, the profit structure also varied depending on the monthly fees paid.

The margin rate from the head office ranged from 1% to 15%.

Even convenience stores with monthly sales of up to 50,000,000 KRW only left the store owner with around 2,000,000 KRW [approximately $1,500 USD], a profit structure that continues to draw numerous complaints.

In response, CL Group had implemented policies such as increasing financial support to store owners and lowering monthly fees.

Naturally, the profit margin decreased, and the hundreds of stores operating on a trial basis suffered losses due to a lack of systematic management.

When the head office raised the margin rate on goods supplied to the convenience stores to 20%, the head office could no longer bear it and continued to incur losses.

However, this structure could not be reformed before the company went bankrupt.

For these reasons, CL Group was considering selling the convenience store business and investing in other ventures.

Digging deeper into the structure revealed various problems, but even this much was enough to make the head office falter.

“They’ll have to sell it eventually, but various problems will arise. Even if they try to revert to the same format as other established convenience store brands, the existing store owners will undoubtedly resist. And do you think other brands will stand idly by? They’ll likely offer incentives for simply switching the signage.”

“It sounds serious just listening to it.”

“Indeed. But there’s still room for some profit improvement. Since the head office has been sold, the store owners will accept some degree of reform. That way, they might not make a profit right away, but they won’t incur losses either. After that, it’s up to you how you manage it.”

“Hmm.”

I paused to think.

The minimum wage was close to 9,000 KRW [approximately $6.70 USD] , and CL Convenience Store’s hourly wage was around 10,000 KRW [approximately $7.40 USD].

Assuming it runs on full auto 24/7, deploying 500 undead would generate an annual profit of 40 billion KRW [approximately $30 million USD].

Of course, this money would come into my personal account.

I was once again struck by the power of labor costs.

The reason I was trying to get into the convenience store business was because of this.

Upon reaching the 5th Circle [a level of magical power], I would be able to manage approximately 500 to 600 undead. And these would be undead capable of speaking and responding.

Even if they were a bit clumsy, I could pass them off as foreigners, and there shouldn’t be any problems.

40 billion KRW annually!

If I were to run a convenience store, I could also supply lunch boxes and kimchi directly. This meant I could control various planned products as well.

CL Convenience Store had about 10,000 stores nationwide, with about 1,000 of them being directly managed.

Right now, I would be directly managing about 500 stores, but what would happen when I reached the 6th or 7th Circle?

It would develop to the point where it would be enough to call it a one-person enterprise.

If I raised the levels of Soo-jung and Rin as well, the profit margin would increase even further.

I anticipated various problems that would arise from running a company, but the conditions were too attractive to pass up.

“What would the acquisition cost be?”

“Hmm. Roughly around 60 billion KRW [approximately $45 million USD]. However, you have to consider that the debt is at 500%.”

“Debt at 500%…”

“Will you do it?”

“Even if it’s possible, the funds I can manage are less than 50 billion KRW [approximately $37 million USD]. It’s not enough, even with the money I received from subcontracting the US military base expansion project this time.”

“Ah, H Group can provide a loan for that. At a low interest rate, of course.”

“From H Capital?”

“That’s right.”

H Group owned H Card and Capital.

With them managing such enormous funds, if the chairman or Director Han himself stepped in, securing a loan would be easy.

This was an opportunity for me.

I would be acquiring it under conditions that would be absolutely impossible if I didn’t have a close relationship with H Group. In the first place, the opportunity might not have even come my way.

“Then, I’ll ask for your help.”

“Hahaha. There’s no need to put it that way. Just think of it as an old man’s desire to forge a deeper relationship with you.”

“You’re too kind.”

I stood up and bowed to Director Han.

If Director Han used his influence, there was a high possibility that this matter would be resolved somehow.

Han Cheol-soo was not a man of his word.

“Take care!”

“I’ll give you good news soon.”

He escorted me to the harbor.

The benefits I gained today were considerable.

As he left, Rin slowly approached.

“Are you going to run a convenience store?”

“Yeah.”

“It seems like you’re planning to run it on full auto… Does that mean you’re going to absorb all the labor costs?”

“If I run 500 undead 24/7, I can bring in about 40 billion KRW annually.”

“Wow! Are labor costs that expensive?”

“Think about it. At 10,000 KRW per hour, that’s 240,000 KRW [approximately $180 USD] per person for 24 hours, right?”

“That’s right.”

“What happens with 500 people, and what happens when that accumulates for a year? It becomes an unimaginable amount of money.”

“You’re really something with your quick thinking.”

“What was that?”

“Ahem. Should I lend you some more of my quick thinking?”

“What is it?”

“How about subjugating the black mages scattered around the world one by one?”

“Huh? There are more black mages?”

“Surely you didn’t think we were the only ones, did you?”

This was new information.

There were more black mages?

Rin smiled faintly.

“I can’t be the only one living as a slave, can I? Among the black mages, there are many in the 4th Circle and quite a few in the 5th Circle, so if you subjugate them one by one, you can build an auto empire, don’t you think?”

Suddenly, my heart started racing.

Indeed, it had been a long time since black magic was spread, and it wouldn’t be strange if it had spread widely by now.

I had Rin, a black mage, under my command closer than I thought.

“Do some research.”

“Hehe. Then, can I quit working here?”

“That won’t do. Only you move. Take out about five of them.”

“Tch. You’re so stingy.”

“What was that, you punk?”

“Aww, I’m just saying.”

Rin curled her tail as I subtly raised my fist.

I left Beomdo and headed to Yeongjong Island.

I got in the car parked at the harbor and headed straight to Seoul because I had to resolve one issue with NK [a company or organization].

I had to take over the businesses that were acquiring and directly managing convenience stores.

My undead would be entering there, so I needed forged IDs.

Of course, a Korean identity was a bit difficult, so I had to disguise them as foreigners, which were easier to forge.

What would happen if I ran a business without identification?

It might be okay for a few days, but if something went wrong, I could get caught.

If it was revealed that I was running a business with undead instead of humans… It was a terrifying thought just imagining it.

The convenience store business was only possible under the assumption that I reached the 5th Circle.

I had to reach the 5th Circle no matter what this time. To expand the business into convenience stores and broaden it further.

After that, if I gathered the black mages one by one, I would be able to open the era of true auto business.

Ahn Seong-cheol was waiting in front of NK headquarters.

“Oh, President. I’m following the news closely.”

Ahn Seong-cheol bowed 90 degrees.

He must have known in advance that I had joined hands with the United States and that I would now have connections all over the world.

So it was no surprise that Ahn Seong-cheol was acting this way.

“It’s nothing much.”

“Nothing much? The whole world is in an uproar right now. Many people are saying it’s almost a weapon of war. Besides, it can be used in numerous difficult constructions and various missions… It’s a hot issue in many ways.”

I just gave a bitter smile.

The money was so enormous that I had to go there in person.

The 25 billion KRW [approximately $18.5 million USD] I received there and the 45 billion KRW [approximately $33.5 million USD] I would receive from the US military base expansion project this time amounted to 70 billion KRW [approximately $52 million USD]. Adding that to the money I already had was enormous, but there were so many places to use it that my available funds were around 50 billion KRW [approximately $37 million USD].

Of course, the cost of producing IDs was also included in the money that would be used in various places.

“I came because I have a favor to ask.”

“Hahaha! Aren’t we the President’s friends? Please, tell me anything without hesitation.”

“It’s not a normal request.”

“Ah, is that so? Then let’s go to the secret room.”

I entered the secret room and faced Ahn Seong-cheol.

He handed me a cup of coffee.

“It’s instant coffee. You like instant coffee, right?”

“I appreciate you considering my tastes.”

Drinking the coffee made me feel a little more awake.

Ahn Seong-cheol lowered his voice.

“Do you need more bombs?”

“I don’t need weapons anymore.”

“Then…?”

“I need forged IDs. A Korean identity would be a bit difficult, so a foreign identity.”

“Hahaha! That’s not a difficult task at all. How many do you need?”

“Hmm. For now, 600.”

“……”

Ahn Seong-cheol suddenly shook his head.

He wondered if he had misheard.

“Six?”

“Six hundred.”

“Uh… Are you planning a coup?”

“Hahaha! Of course not.”

“Then what are you going to do with so many IDs…”

“I have a use for them. I’m going to start a convenience store business this time. You can think of it as related to hiring employees.”

“Ah, I see. You startled me for no reason. I thought you were going to create an army or something.”

Ahn Seong-cheol was really sweating cold.

What on earth does this guy think I am?