Restaurant Industry Sales Reach 250 Million Won, Up 41% from Five Years Ago

The annual average sales of restaurant businesses have surpassed 250 million won, showing a 41% increase compared to five years ago.

The Ministry of Agriculture, Food and Rural Affairs and the Korea Rural Economic Institute announced the results of the "2025 Restaurant Business Management Status Survey" on March 29, 2026.

A visitor attending the '2025 Second Half IFS Franchise Startup Industry Expo' is looking around the kitchenware booth. Photo by Dongju Yoon

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This survey was conducted through in-person interviews with 3,138 restaurant businesses nationwide from August to October 2025. It also analyzed changes over the past five years.

◆ 41.4% Sales Growth in Five Years... 1.4% Increase in the Most Recent Year = According to 2024 performance, the average annual sales per restaurant reached 255.26 million won, which is a 41.4% increase compared to 180.54 million won in 2021.

The number of customers visiting restaurants has also increased noticeably. In 2025, the average daily number of customers per business was 53.0, which is 1.27 times higher than five years ago (41.8 in 2021). The average amount spent per customer has also steadily increased, influenced by rising prices.

However, the year-on-year growth rate of annual average sales was only 1.4% from 2023 to 2024, indicating a sharp slowdown in growth. The restaurant industry maintained external growth by raising prices to cope with cost pressures, but recently, the decline in real purchasing power caused by high interest rates and high inflation has led to stagnation in sales growth.

In particular, the gap in sales based on business type is widening. Franchise businesses posted sales of 330 million won, about 1.5 times higher than non-franchise businesses, which recorded 230 million won.

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Over the past five years, the sales gap between franchise businesses, which achieved stable growth thanks to brand awareness, and non-franchise businesses has widened from 70 million won to more than 100 million won. Joint purchasing of raw materials and brand marketing have proven effective in defending sales during economic downturns.

◆ Operating Margin Falls to 8.7% = The biggest challenge for the restaurant industry has been deteriorating profitability. While sales increased 41.4% over the past five years, operating costs rose even faster by 46.7%. As a result, the operating margin fell from 12.1% in 2020 to 8.7% in 2024.

A representative from the Korea Rural Economic Institute said, "The main drivers of cost increases have been rising labor and ingredient costs, with the proportion of ingredient costs surging from 36.3% to 40.7%. This demonstrates a typical pattern of so-called recessionary growth, where sales rise but actual profits decrease under high inflation."

◆ Smart Restaurants Triple in Number: 'Value for Money & Efficiency' = The restaurant industry is seeking ways to survive by reducing labor costs and improving operational efficiency. The adoption rate of unmanned order systems, such as kiosks and table ordering, has increased nearly threefold from 4.5% in 2021 to 13.0% in 2025, accelerating the digital transformation (DX) aimed at addressing labor shortages and cost reduction.

The proportion of businesses using delivery apps (30.0%) and third-party delivery services (29.4%) remains steady, highlighting the normalization of digital platforms and delivery services.

The way ingredients are purchased is also shifting toward value for money and efficiency. The proportion of purchasing raw ingredients that require in-store preparation decreased from 73.3% in 2021 to 66.1% in 2025, while the proportion of purchasing pre-processed ingredients, which can be cooked immediately and save labor costs, increased significantly from 23.0% to 29.3%.

The Ministry of Agriculture, Food and Rural Affairs plans to strengthen the competitiveness of the restaurant industry and support sustainable growth through measures such as introducing food tech, supporting digital transformation, ensuring management stability, securing a stable supply of raw materials, and supporting labor supply.

Jung Kyungseok, Director General for Food Industry Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "Although we have achieved quantitative growth, reaching an era of 250 million won in sales, the actual substance has become more vulnerable due to rising costs. The government will fully support scientific, data-driven decision-making and stable raw material supply so that the restaurant industry can enhance its competitiveness and achieve sustainable growth."

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