Restaurant Generosity Turns Stingy Amid High Inflation... Is 'Kimchi Self-Service' Becoming a Thing of the Past?

Q3 Foodservice Industry Ingredient Costs Hit Record High
Price of Chinese Kimchi Also Rises... Up 52% Compared to Same Month Last Year

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gyehwa, Intern] The cost level of ingredients in the dining-out industry reached another record high in the third quarter of this year. Despite the recovery trend in the dining-out market, the burden on dining establishments such as Korean restaurants is increasing due to consecutive cost hikes.

The ingredient cost index for the dining industry in the third quarter was 145.89, up 0.71 points from the previous quarter. It has been rising for seven consecutive quarters since the first quarter of last year, setting new quarterly records each time.

By sector, Korean cuisine restaurants recorded the highest at 148.41. This was followed by foreign cuisine restaurants (147.59), institutional cafeterias (146.61), other simple restaurants (146.47), pubs (144.42), catering services (142.04), and non-alcoholic beverage establishments (137.21). This figure represents the cost level of ingredients compared to the same period last year; a value above 100 indicates an increase in costs.

As a result, more self-employed business owners are finding it difficult to serve kimchi as a side dish. On top of this, the price of Chinese-made kimchi has also risen, increasing the burden further.

Price comparison site Danawa surveyed the average consumer purchase price of 20 types of 10kg whole cabbage kimchi (10 domestic, 10 imported) distributed through online malls. The price of domestic whole cabbage kimchi in October rose from 40,846 KRW to 52,467 KRW compared to the same month last year, an increase of 11,621 KRW (28%). Imported whole cabbage kimchi also surged significantly from 12,605 KRW to 19,127 KRW, a rise of 6,522 KRW (52%). The shortage of domestic kimchi has driven demand toward imported kimchi, causing a sharp increase in the price of imported kimchi.

Even with the supply of autumn cabbage, kimchi prices are expected to remain high. Prices of other kimchi ingredients such as chili peppers, garlic, and salt have also risen by up to 50%. In the chili powder market, domestic products saw a larger increase. For a 1kg product, domestic chili powder rose 14% from 25,867 KRW to 29,460 KRW, while imported chili powder increased 7% from 9,214 KRW to 9,855 KRW.

A self-employed restaurant owner, Mr. A, said on the online community 'Apeunikka Sajangida' ("Because it hurts, I am a boss"), "Domestic kimchi prices have become so expensive that it is hard to even consider buying it." He added, "Chinese kimchi used to be around 12,000 KRW per 10kg, but recently it has risen to 18,000 KRW." He continued, "Customers don't like Chinese kimchi, so I am considering removing kimchi from the menu and replacing it with other dishes." He also mentioned, "To save costs even a little, we recently changed from self-service kimchi to having staff serve it directly."

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