Restaurant Industry & Dining Trend Korea...
Transcript of Restaurant Industry & Dining Trend Korea...
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10 April 2018
Kim, Sung-yoon, Chosunilbo Daily
Restaurant Industry & Dining TrendKorea 2018
Restaurant Association of Singapore
http://ras.org.sg/
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Who am I?
Sung-Yoon Kim
• The Chosunilbo Daily: largest daily / 1 million copies daily
• Senior staff writer since 2000; food writer for 15 years
• Master, Food Culture and Communications, University of Gastronomic Sciences, Italy (Slowfood International)
Books:
• ‘Italy Travel Scrapbook’
• ‘Foods of the World’
• ‘Seasonal Delicacies of Korea’
• ‘Coffee Story’
http://ras.org.sg/20170811사찰음식정관스님.pdfhttp://news.chosun.com/site/data/html_dir/2018/04/09/2018040900118.html
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Number of restaurant business: 675,199 (16% of # of total business)Restaurants (including D&B) 1 per 76 people
2007 2008 2009 2011 2012 2013 2014 2016
Drinks and Beaverage 153,630 156,282 158,649 167,386 173,493 176,488 183,661 192,108
Restaurants 423,628 420,708 421,856 439,794 451,338 459,252 467,229 483,091
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Number of Restaurants in Korea
Source: Korea Food Service Industry Association
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Business Size by Employee Number
Less than 5 Employees: 87%
87%
10%
2%
0%
0%
Less than 5 5~9 10~19 20~49 More than 50
Source: Korea Food Service Industry Association
http://ras.org.sg/
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Average revenue per restaurant per year: 137 Million KRW (2016)
Restaurant (Chain) Size by revenue
Source: Korea Rural Economic Institute
40.60%
29.40%
26.50%
3.50%
Korean Restaurants by Revenue
100~500 Less than 50 50 ~ 100 More than 500
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Korean Food is the most popular: 53%
Restaurants by Cuisine – number of restaurants
53%
3%2%
1%
9%
19%
13%
Korean Restaurants by Cuisine
Korean Chinese Western Japanese Non-alcohol Beverage Drinks Others
Source: Korea Food Service Industry Association
http://ras.org.sg/
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Franchise Industry Value in 2016: US$ 94.7 billion
Franchises Dominated by Food Service
Source: Fair Trade Commission
75%
7%
18%
Franchises in 2016: Total - 4,268
Food Service Retail Services
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Industry Overview
Restaurant boom: 500,000 restaurants (2010) to 675,000 (2018)
Restaurant industry: 192 trillion KRW (US$ 169 billion) in 2017
21 companies: revenue bigger than 1 trillion KRW in 2016
CJ Cheiljedang: largest with 4.9 trillion KRW
CJ Foodville: largest restaurant operator with 1% market share
Anti-corruption law: depressing the industry since 2016
Franchises: 5,273 brands & 218,997 franchise stores
Restrictions on large franchises/chains: opening door for entrepreneurs
Large chains & brands looking overseas for opportunities
Saturated domestic market: driving Korean companies offshore
http://ras.org.sg/http://www.cj.co.kr/cj-kr/brandshttps://www.cjfoodville.co.kr/brand/brandintro.asp
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Social Changes Push Industry to Change
• Shift from ‘well-fed’ to ‘well-being’
• Rising income driving the industry: more options, cheap to premium
• Sophisticated consumers: willing to pay more for
better, newer cuisines & experiences
• Food safety, cleanliness paramount importance
• Avoiding additives & preservatives
• Kosher & Halal: becoming familiar
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Exodus: International Franchises
Pizza Hut Korea & KFC Korea: sold off to Korean investment company
McDonalds: looking to sell its business
Local brands: taking market share from international brands
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Franchise M&As
Source: Maeil Daily
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Food Delivery
Restaurants with delivery service: 5.9%
Chinese: 15.3%
Fried chicken: 26.8%
Pizza/Hamburger /Sandwich: 32.9%
Biggest food delivery brand: Baedal Minjok
Source: Korea Food Service Industry Association
http://ras.org.sg/http://www.paikdabang.com/paiks/menu.asp
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Value for Money
Recession as Norm
Cost-effectiveness
Polarization: fine dining or cheap eateries/CVS
Big size beverages: Paik’s Coffee
http://ras.org.sg/http://www.paikdabang.com/paiks/menu.asp
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Dine Alone, Drink Alone
Increase of one-person household & spending
Personal lifestyle undisturbed by others
Social dining
HMR & semi-dining
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Korean Cuisine: New Trendy Dining Option
Modern Korean & Michelin Guide
Korean buffet restaurant
Western deserts with Korean elements
Traditional drinks
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Revival of the Chinese
From cheap delivery food to premium dining
American Chinese
Chinese cuisine from Mainland China
From Greater China: Singapore, Hong Kong, Taiwan
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Sweet Tooth, Growing Sweeter
Dessert sector continue growing
Small luxury
Dessert marketing: department stores, convenience stores
Macaron, eclair, gelato & soft ice cream
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Premium Hanwoo Dining
Hanwoo(韓牛): top Korean beef
Hanwoo omakase
Western dining service + Korean barbeque
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Premium Hanwoo Dining
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Bread the New Rice‘Bob(cooked rice)=Meal’ no more
Koreans consuming less and less rice
Bread consumed more and more at the same time
Bread considered before as ‘dessert’ ‘snack’; now as ‘bob’
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Foreign Cuisines: Going FurtherMore knowledge & experience
Japan: gatpo, sushi
Taiwan: bubble tea, mango shaved ice, castella, pineapple cake, nougat cracker
Singapore: Bee Cheng Hiang, chilli crab, Crystal Jade, bakku teh
Italy: Piedmontese, Neapolitan, Sicilian, Fiorentine
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Thank you
Sung-Yoon Kim
Senior Staff Writer,
Chosunilbo Daily
http://ras.org.sg/