24-Hour Restaurants with Lights Off, Cafes Without Coffee... Only Small Business Owners Are Frustrated

Food Franchise Industry "Franchise Owners and Self-Employed Suffer Greatly but No Measures Taken"
Restaurants and Bars "Will Follow Quarantine Guidelines to Prevent COVID-19 Spread... Sales Impact Is Unavoidable"

A Baskin-Robbins store located at Gaebong Station. A notice is posted in the store stating that only takeout and delivery are available after 9 PM. Photo by Lee Seon-ae lsa@

[Asia Economy Reporter Lee Seon-ae] "Sorry. We are only open until 12 o'clock today." Around 11 p.m. on the 29th, at a 24-hour Sundaeguk (Korean blood sausage soup) restaurant in Jongno. Out of about 20 tables for four people, only four tables had customers, and all of them left the store before midnight. The store owner, Mr. Lee, said, "Usually, we close the store at 2 to 3 a.m., but since we have to close at 9 p.m. starting from the 30th, we ended business at midnight," adding, "Since it is an important time to prevent the spread of the novel coronavirus infection (COVID-19), we will strictly follow the quarantine guidelines." He choked up, saying, "Still, honestly, I feel very overwhelmed about how to manage rent and other expenses."

From the 30th to September 6th, general restaurants, rest stops, and bakeries in the metropolitan area are prohibited from allowing the consumption of food and beverages inside the store from 9 p.m. to 5 a.m. the next day. During this time, only takeout and delivery are allowed. Franchise-type coffee and beverage specialty stores, where many people gather and stay for long periods, are prohibited from allowing food and beverage consumption inside the store regardless of the time. Only takeout or delivery is allowed. The government's 'Strengthened Metropolitan Area Quarantine Measures' focus on restricting the operation of restaurants and cafes where group infections have occurred, aiming to minimize the use by metropolitan residents and slow down the speed of infection as much as possible.

Self-employed food service business owners could not hide their disheartened expressions. Mr. Kim, the owner of a pub in Daehangno, said, "Usually, there are no empty tables on weekend nights, but since COVID-19 started, less than 50% of the tables have been filled," adding, "Recently, as the number of confirmed cases in the metropolitan area increased, we could only serve 2 to 3 tables at most, and now we have to give up night and early morning operations for the time being, so it feels hopeless." He continued, "We need to consider delivery services, but honestly, sales do not come in," adding, "It might be better to close the store for a while."

Mr. Lee, the owner of a nearby 24-hour Haejangguk (hangover soup) restaurant, said, "Although the sales decline is overwhelming, I think the safety of the people is more important than the economic impact, so we will follow the quarantine guidelines well," adding, "I hope no one operates past midnight just because they are not caught by inspections, and everyone follows the rules well so that we can overcome this quickly."

The coffee franchise industry could not hide their bewilderment. They know that strengthened quarantine measures must be followed to prevent the spread of COVID-19, but they complained that it is practically equivalent to a shutdown order due to concerns about sales decline. In particular, there were many voices worried more about the damage to franchisees than to the headquarters.

An industry official said, "Franchisees are self-employed food service business owners," adding, "Although franchise headquarters or companies will also be affected, the biggest concern is the damage to franchisees who operate the stores." Another official said, "Since preventing the spread of COVID-19 is important, we will instruct the store owners well to follow the quarantine guidelines," adding, "We will prepare measures to minimize sales decline."

The coffee franchise industry plans to strive to compensate for sales through delivery services. Among coffee franchises, those offering delivery services include Coffee Bean, Hollys, and Angel-in-us. Coffee Bean provides delivery services at 171 out of its 290 stores, and Hollys also offers delivery through Baemin Riders. The industry expects that more franchise brands will enter the delivery service market to endure the COVID-19 era.

Meanwhile, if quarantine rules are violated, the facility may be subject to a ban on gatherings, or the business owner or users may be fined up to 3 million won. In case of confirmed cases, compensation claims can be made not only for hospitalization and treatment costs but also for quarantine expenses.

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