"Lunchflation, Unbearable"... Convenience Stores Bustle During Lunch Hours

by Kim Yuri

Published 08 Jul.2022 11:10(KST)

CU·GS25 Convenience Store Lunchbox Sales Surge 50% This Month
High Inflation + Rainy Season + Heatwave... "Choosing Convenient Lunchboxes Over Dining Out"
Relatively Affordable Burger Franchise Meals Also See Increased Visits
Industry Emphasizes 'Cost-Effective' Marketing with Summer Health Lunchboxes and Differentiated Products

A customer is looking at the collaboration product "Jang Jin-woo Curry Lunchbox," a popular restaurant item, at Emart24.

[Asia Economy Reporter Yuri Kim] "With a bowl of naengmyeon costing over 16,000 won, I came out for a simple lunch but was startled by the unexpectedly high price and hesitated."

As 'lunchflation' (lunch + inflation) intensifies, office workers during lunchtime are heading to convenience stores. More workers are stopping by relatively cheaper hamburger franchises or even bringing packed lunches from home. The industry is responding by launching unique lunchbox menus such as summer health foods and participating in major lunchbox promotions to attract customers.

According to the convenience store industry on the 8th, CU's lunchbox sales from the 1st to the 7th of this month surged 52.3% compared to the same period last year. GS25's lunchbox sales growth rate also approached 50%, at 49.8%. With persistent high prices and added heat waves, more people are enjoying convenience store lunchboxes instead of dining out, leading to a significant increase in lunchbox sales. Seven Eleven and Emart24 also saw lunchbox sales rise by 40% and 43%, respectively.

Last month, CU's lunchbox subscription coupon usage soared 97.9% year-on-year. For 4,000 won per month, customers can purchase lunchboxes 10 times over 30 days at a 20% discounted price. Seven Eleven also saw a significant increase in usage of its lunchbox subscription service, which offers five lunchboxes with a 30% discount for 2,000 won.

Amid soaring dining-out prices, visits to burger franchises have also increased. According to Mom's Touch, sales during lunchtime from 11 a.m. to 2 p.m. in the second quarter (April to June) rose 23.3% compared to the same period last year, and increased 29.8% compared to the first quarter. Burgers priced between 3,000 and 4,000 won, such as the Cyburger, ranked high in popularity.

The average set menu price for these burgers is 6,100 won, which is cheaper than the average prices of representative Seoul dining-out dishes recently announced by the Korea Consumer Agency, such as Kalguksu (8,269 won), Bibimbap (9,192 won), and Kimchi Jjigae set meal (7,385 won). Market Kurly also reported that due to the unprecedented high prices, second-quarter sales of cup lunchboxes increased 1.6 times compared to the first quarter. Sales of donburi and gimbap, which reduce hassle by microwave cooking, rose 1.4 times and 1.3 times, respectively. Sandwich sales, often chosen as a substitute for a lunch meal, increased 1.4 times.

The industry expects many to continue seeking cost-effective lunches amid the 'lunchflation butterfly effect' and is focusing on product differentiation.

GS25 launched 'health food lunchboxes' ahead of the first heat wave of summer. They introduced new health food menu items such as whole freshwater eel lunchboxes and longevity ginseng chicken soup priced in the mid-10,000 won range, aiming to offer affordable health food lunchboxes conveniently.

CU released a series of plum-flavored ready meals earlier this month, including the 'Plum Bulgogi Set Lunchbox,' designed to stimulate appetites in midsummer. Prices range from 1,500 to 4,800 won, all under 5,000 won.

Emart24 differentiated its lunchboxes by the rice included. Emart24 stated, "Starting this month, we are selling 10 popular lunchboxes made with the premium rice variety 'Ilpummi.' We are also offering various lunchboxes in collaboration with popular restaurants, such as the 'Bulgogi Cheese Curry Lunchbox' and 'Spam Cheese Curry Lunchbox,' featuring the signature curry from 'Jang Jin-woo Restaurant.'"