Ourhome Stalled by 'COVID-19', Indefinite Postponement of First Global Foodservice Outlet Opening in China

Published 27 Feb.2020 10:06(KST)

Global First Outlet of Food Service Industry
Opening Indefinitely Postponed as COVID-19 Cases in China Exceed 70,000
Concerns Rise Over Potential Impact on Overall Business in China

Customers are dining at Hansik Midam-gil located in the Transportation Center of Incheon Airport Terminal 2.

[Asia Economy Reporter Choi Saeng-hye] The comprehensive food company Ourhome's first global entry into the dining business has been halted. On the 27th, Ourhome indefinitely postponed the official opening of a Korean restaurant of about 270 pyeong that had a soft opening in downtown Beijing, China. An Ourhome official said, "With the number of confirmed cases of the novel coronavirus (COVID-19) in China exceeding 70,000, it is difficult to proceed with the official opening," adding, "We expect the official opening to be possible once the COVID-19 situation calms down."

The Beijing store is significant as Ourhome's first global dining establishment. When the plan to open a global dining venue was announced, an Ourhome official expressed expectations for a successful launch, saying, "We currently operate over 50 premium restaurants such as 'Kisara' and 'Singkai' domestically, and run food courts like 'Ourhome Foodium' and 'Hansik Midamgil' at Incheon International Airport Terminal 2, accumulating considerable experience in dining services for foreigners." In particular, through this Beijing Korean restaurant, they showed the intention to contribute to expanding the presence of K-food in China by selling Korean set menus imported from Korea that preserve authentic Korean flavors.

However, the industry is concerned that the COVID-19 crisis, spreading as a global disaster not only in China but worldwide, could impact not only dining establishments but also Ourhome's overall business in China. Currently, they operate about 50 consignment and office catering venues in 10 Chinese cities including Beijing, Nanjing, Guangzhou, Tianjin, and Yantai, and had planned to expand about 10 catering venues this year to increase sales by 20%. Meanwhile, there are also forecasts that the COVID-19 situation in China could calm down within a few months.

Researcher Jo Ik-jae of Hi Investment & Securities said, "Although economic activities in China are currently contracted due to city lockdowns, the recent sharp decrease in COVID-19 infections within China increases the likelihood of significant improvement," adding, "Considering that during the past Severe Acute Respiratory Syndrome (SARS) outbreak, consumer confidence indices in China rebounded when the rate of increase in infections slowed, we judge that China's economic activities and psychological indicators will improve from late March."