10 April 2018

Kim, Sung-yoon, Chosunilbo Daily

Restaurant Industry & Dining TrendKorea 2018

Restaurant Association of Singapore

http://ras.org.sg/

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

www.ircltd.com

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

http://ras.org.sg/

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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/

www.ircltd.com

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

http://ras.org.sg/

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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/

www.ircltd.com

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

http://ras.org.sg/

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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

http://ras.org.sg/

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Franchise M&As

Source: Maeil Daily

http://ras.org.sg/

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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

http://ras.org.sg/

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Premium Hanwoo Dining

Hanwoo(韓牛): top Korean beef

Hanwoo omakase

Western dining service + Korean barbeque

http://ras.org.sg/

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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’

http://ras.org.sg/

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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

http://ras.org.sg/

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Thank you

Sung-Yoon Kim

Senior Staff Writer,

Chosunilbo Daily

gourmet@chosun.com

http://ras.org.sg/