Restaurant Owner Tearfully Thanks One Table Guest... Six Months of Corona Shock "Petition to Save Us"

Nielsen "COVID Shock Lasts Over 6 Months... Restaurants and Coffee Shops Hit Hard"
Food Service Industry Research Institute, 5th Survey Results "95.2% Responded Decrease in Customers"
Loan Support Also Difficult, Struggling... From Temporary Closure to Uncertain Path to Permanent Closure

Due to the impact of the novel coronavirus disease (COVID-19), a temporary closure notice is posted at a small business store in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Lee Seon-ae] On the afternoon of the 13th, at a baekban (set meal) restaurant in Namdaemun. The restaurant owner repeatedly bowed, expressing gratitude to the customer who visited after a long time. When the customer asked for more side dishes, he said, "I will give you anything," bowing once again. When the customer said it was too much, he replied, "It's food that would be thrown away if it stays too long," adding, "I would be grateful if you eat until you're full." The owner, Mr. Lee, said, "Even when there are really no customers, it's so empty that I can't help but feel so glad," and tearfully added, "Just having someone come in during these times is truly something to be thankful for." He continued, "Several nearby stores have closed temporarily, but we are still holding on," and lamented, "It's terrible to endure even one month in this state, and I have no idea how we will survive six months."

Mr. Lee, who runs a coffee shop in Jongno, posted a notice of 'temporary closure' and stopped operations starting last week. He disinfected the place and even sent photos to regular customers showing the disinfection, but no one came. He said, "After working for 10 years, I took a big step and opened this cafe last summer, but to be in this situation in less than a year, I just can't smile," and added, "I'm worried about the rent, but I also feel it's wrong to keep the door open all day, so I decided to temporarily close."

With the spread of the novel coronavirus infection (COVID-19) surpassing 8,000 confirmed cases, self-employed business owners are taking a direct hit. The food service industry, including coffee shops and restaurants, is suffering the most.

According to Nielsen Korea, as the COVID-19 crisis alert was raised to a severe level, social distancing measures such as refraining from going out and dining out have caused a decline in the franchise industry, a representative dining market. In particular, nationwide, the number of payment transactions at cafes dropped by 16%, and in Daegu, where confirmed cases are concentrated, it fell by 39%. The decrease was more pronounced in non-stock food sectors like cafes compared to stock food items such as hamburgers, chicken, and pizza (comparing week 7 to week 8 of 2020).

This phenomenon was also clearly revealed in five surveys conducted by the Korea Foodservice Industry Research Institute. Since the first confirmed case on January 20, customer numbers at dining establishments have steadily declined. In a survey conducted over four days from March 3 to 6 targeting 600 member establishments of the Korea Foodservice Association, 95.2% of food service businesses responded that customer numbers decreased after the domestic COVID-19 cases emerged. The cumulative customer decrease rate across all businesses was confirmed to be 65.8%. In the fourth survey conducted from February 25 to 28, the customer decrease rate was 59.2%. Among the food service businesses participating in the survey, 95.2% responded that customer numbers declined after the first confirmed case.

In the third survey conducted from February 18 to 21, customer numbers decreased by 32.7%. In the second survey conducted from February 11 to 14, 83.0% of restaurants responded that customer numbers had decreased over the past three weeks. In the first survey conducted from February 4 to 7, 85.7% of respondents said customer numbers had declined. The institute explained, "The average customer decrease rates after confirmed cases were 29.1% in the first survey, 26.1% in the second, 32.7% in the third, 59.2% in the fourth, and 65.8% in the fifth," adding, "Since the announcement of the 31st confirmed case in Daegu on February 18, dining usage rates have significantly worsened."

A baekban restaurant in Pildong is considering closing down. The owner, Mr. Lee, said, "Daily earnings are only about 50,000 won, so I let go of the part-time server," and added, "After serving one table, I have to pay attention to disinfection again, so I plan to close for a while, but I think I will eventually close the business."

A temporary closure notice is posted at a restaurant in Jongno-gu, Seoul, due to the impact of the novel coronavirus disease (COVID-19). Photo by Hyunmin Kim kimhyun81@

Although difficulties are increasing, it is actually hard to get loans. The Credit Guarantee Foundation has stepped in to provide financial support to small business owners in trouble, but due to a flood of applications, it takes a month and a half just to get a consultation. Mr. Kim, who runs a jokbal (pig's trotters) restaurant in Daegu, said, "I applied for a support loan, but I haven't been able to get a call back for over a week, and it's driving me crazy," adding, "I borrowed money from the bank because I lacked startup funds, but in a situation that's practically 'business suspended,' it's very hard to pay the interest," with a bitter smile.

A petition has even appeared on the Blue House website. The author, who said they run a convenience store, stated, "I believe that true win-win measures are those that guarantee the minimum survival of franchise store owners when disasters like COVID-19 occur," and said, "If franchise store owners could be supported with even a temporary special distribution rate during the COVID-19 crisis period, it would be a great help to them." He emphasized, "I hope that through open discussions with the management of large franchise headquarters, a special COVID-19 franchise win-win plan can be developed so that headquarters and franchisees can coexist."

Choi Kyung-hee, CEO of Nielsen Korea, said, "Based on past experiences with Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (MERS), the impact related to COVID-19 is expected to last more than six months, leading to instability in macroeconomic indicators, contraction of the Fast Moving Consumer Goods (FMCG) market, and changes in consumer lifestyles and consumption patterns," adding, "Especially, the contraction in consumption related to outdoor activities is not only in Daegu, where confirmed cases are concentrated, but overall social anxiety is gradually transforming consumers into untact (contactless) home dwellers. Considering this, it is important to prepare mid- to short-term measures to minimize the impact of consumption contraction."

This content was produced with the assistance of AI translation services.