Long Rainy Season and COVID-19... Dining Industry Cries, Online Food Malls Smile During Vacation Season

Foot Traffic to Dining Out Drops Sharply... Buffet-Style Stores Suspend Operations
HMR Demand for Side Dishes Soars Even During Vacation Periods

[Asia Economy Reporter Choi Saeng-hye] The food service industry failed to enjoy the expected summer vacation boom due to the longest-ever 52-day monsoon season and the resurgence of COVID-19. On the other hand, online food malls benefited from this situation, as consumers preferred home-cooked meals over dining out during the holiday season.

According to the food service industry on the 21st, the recent monthly sales of a major corporation-operated A food service brand stood at only 50% compared to the previous year. B food service brand also saw a sharp decline in sales starting from last weekend. A representative of B food service brand stated, "Sales dropped by up to 50% during the notable spread of COVID-19 in March and April. Although sales recovered to 80-90% of the previous year’s level in July, the recent resurgence of COVID-19 centered in the metropolitan area has caused significant damage."

Following the government's strengthened social distancing guidelines, buffet-style restaurants have temporarily ceased operations since the 19th. CJ Foodville temporarily suspended operations at 36 stores of 'VIPS' and 'Seasonal Table.' E-Land Eats halted operations at 109 metropolitan area stores including 'Ashley,' 'Jayeon Byeolgok,' 'Susa,' 'Pizza Mall,' and 'Roun.' Shinsegae Food also temporarily closed four stores including 'Bonobono' and 'Olban.'

Many companies have declared work-from-home policies, impacting restaurants located in major commercial districts such as Yeouido and Gangnam. Restaurants in Myeongdong, which used to attract many tourists, reportedly saw sales drop by up to 90%.

As consumers increasingly preferred home dining over eating out, online malls selling side dishes and home meal replacements (HMR) gained a windfall. Dongwon Home Food’s side dish mall 'The Banchan&' saw a 15% increase in side dish sales over the recent month (July 18 to August 17) compared to the same period last year. During the same period, CJ CheilJedang’s instant rice 'Hetbahn' sales rose by 3.5% month-on-month and 3.9% year-on-year. Meal kit 'Cookit' has been growing monthly sales by over 20% since early this year. Seafood HMR 'Bibigo Grilled Fish' also saw an average monthly sales increase of about 15% since February.

At the side dish mall 'Jip Banchan Yeonguso,' side dish sales grew significantly by 126% during the same period. Especially, the side dish subscription service (regular delivery) 'Silsok Diet,' where consumers can choose the day, frequency, and delivery method, has ranked first in monthly sales, clearly demonstrating the preference for home dining.

On Gmarket, rice sales increased by 27% year-on-year during the same period, and sales of mixed grains grew by 21%. Sales of instant rice and ramen, which are easy to prepare, rose by 5% and 21%, respectively. Frozen and easy-to-cook foods, including instant soup (30%), also saw a 34% increase in sales. Due to heavy rains causing vegetable prices to rise, sales of vegetables available at relatively reasonable prices also increased. Basic vegetables such as garlic (10%), onions (30%), radish (57%), chili peppers (11%), potatoes (15%), and carrots (95%) showed notable growth. In addition to vegetables, orders for kimchi (59%) and various side dishes (46%) surged.

SSG.com also saw an 11% increase in rice sales during this period. Sales of instant rice and ramen rose by 42.6% and 34%, respectively. Instant soup sales increased by 67%, frozen easy-to-cook food sales by 57.4%, and sales of vegetables and side dishes surged by 77.2% and 60%, respectively.

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