"Lunch Over 10,000 Won"… Tightening Belts Amid 'Lunchflation'

Office Workers Seek Lunchboxes and Fast Food Due to Dining Out Costs
Second Round of Dining Price Hikes Expected in Second Half of Year
Sandwiches and Hamburgers See Consecutive Price Increases

As dining-out prices soar, more office workers are seeking relatively affordable meals. Photo shows a restaurant district in Myeongdong, Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Hyunju Park] #. Baek (26), an office worker, stopped visiting his usual coffee franchise store on his way to work. Instead, he now uses low-cost coffee franchises or office pantry coffee. He, who once said "finding good restaurants was the joy of lunchtime," has also given that up and now settles for lunch at the company cafeteria or inexpensive Korean set meal restaurants.

As lunch prices exceed 10,000 won and 'lunchflation' (lunch + inflation) continues, more office workers are tightening their belts. They are opting for relatively affordable meals such as convenience store lunch boxes or fast food.

According to GS25 convenience store, lunch box sales from the 1st to the 7th of this month increased by 49.8% compared to the same period last year. Considering that lunch box sales in July last year grew about 15% compared to July 2020, this means sales have more than tripled compared to two years ago.

Hamburger franchise Mom's Touch also saw a 23.3% increase in lunchtime sales in the second quarter compared to the previous year. This is a 29.8% increase compared to the previous quarter.

The so-called 'lunch box tribe' who prepare their own lunch boxes has also grown. On the 12th, Wemakeprice announced that sales of lunch box-related products increased by more than 80% compared to the same period last year over the past three months (April 8 to July 7). Looking at products individually, sales of lunch box containers increased by 50%, while demand for airtight containers and thermal lunch boxes rose by 83% and 12%, respectively. Sales of lunch box spoon sets also increased by 60%. Lunch box bags (55%) were also sold in large numbers. Among these, lunch box bags with thermal insulation features saw a 60% increase in sales.

As the prices of raw materials such as flour and cooking oil have soared, there is a forecast that food prices will rise once more in the second half of this year. The photo shows lunch boxes and other food items displayed at a convenience store in Seoul. [Image source=Yonhap News]

However, as food price hikes are expected once again in the second half of this year, office workers' sighs are growing deeper. Related industries foresee that price increases in the dining-out sector are inevitable due to soaring raw material costs such as flour and edible oils.

Sandwich franchise Subway raised the prices of its main product line, 15cm sandwiches, by an average of 5.8% starting from the 12th. The 15cm sandwiches increased by an average of 333 won, and the 30cm sandwiches by 883 won. Subway had also raised the price of 15cm sandwiches by an average of 283 won in January.

Hamburger franchise Lotteria raised product prices by an average of 5.5% starting from the 16th of last month, following a price increase in December last year. KFC also raised product prices by 100 to 200 won in January, and further increased prices by 200 to 400 won on the 12th.

Meanwhile, the dining-out price index in June rose 8.0% compared to the same period last year. This is the highest increase in 29 years and 9 months since October 1992 (8.8%).

Accordingly, prices of common people's food items such as jajangmyeon, kalguksu, and gimbap all rose in the first half of this year. According to the Korea Consumer Agency's comprehensive price information portal 'Chamgagyeok' on the 15th, the item with the highest price increase in Seoul in June was jajangmyeon, which rose 8.5% from the average price at the beginning of the year (5,769 won) to 6,262 won.

Kalguksu rose 6.4% from 7,769 won to 8,269 won, and gimbap increased 6.3% to 2,946 won, nearly reaching 3,000 won. Naengmyeon, which was 9,808 won in January, rose 4.7% to 10,269 won in June, and samgyeopsal (based on 200g) also increased by 4.7%. Kimchi jjigae set meals and samgyetang also rose by 4.4% and 4.0%, respectively.

Experts predict that as inflation continues, consumption patterns that reduce spending will appear in the second half of the year as well. Professor Eunhee Lee of Inha University's Department of Consumer Studies explained, "As prices rise and economic outlook becomes uncertain, consumers are adopting strategies to reduce spending. Consumers also have a pessimistic view of the economic outlook for the second half, so consumer sentiment is likely to remain subdued."

Professor Lee added, "The current price increases are caused by a combination of factors including food security issues due to war, poor harvests, and disruptions in international logistics caused by COVID-19. As raw material prices rise, product prices inevitably increase. It is highly likely that prices will continue to rise in the second half of the year."

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