Baemin 'Hangureut' Service Gains Popularity

Targeting the Growing Single-Person Household Market

Baemin's 'Hangureut' service has shown strong results just over a month after its launch. The strategy of eliminating the minimum order amount and making it easier to order single-serving meals, aimed at the increasing number of single-person households, is being credited for the success. Baemin is expanding its support for small-amount orders, such as waiving commissions and providing delivery fee subsidies, so 'Hangureut' is expected to not only benefit consumers but also help improve the actual profits of partner restaurants.

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According to Woowa Brothers, the operator of Baemin, as of the fourth week of June, the number of orders in the 'Hangureut' category had increased about 12 times compared to the first week of May, when the service was first launched. The company explained that the service is rapidly gaining popularity, with weekly order numbers rising sharply. The number of partner restaurants offering Hangureut also increased by 2.6 times in June compared to the previous month.

The main reason for Hangureut's popularity is its improved user experience, which allows anyone to easily and quickly order a single serving. Previously, consumers had to search for single-serving menus themselves or add unnecessary items to meet the minimum order amount. Baemin went beyond simply grouping single-serving menus together; it eliminated the minimum order requirement and revamped the user interface (UI) to make menu navigation easier. Now, customers can order their desired single-serving menu items with just a few clicks.

Exemption of brokerage fee under 10,000 won and differential support for delivery fees

Improved profitability for partner restaurants is also expected. While delivery demand from single-person households has continued to rise, the commission burden for small-amount orders has been a significant obstacle for restaurants. For example, when the order amount was 10,000 won, the burden rate for business owners, including brokerage fees and rider delivery fees, exceeded 40%. However, Baemin recently announced that it will exempt brokerage fees for orders under 10,000 won, provide differential support for delivery fees, and offer tiered brokerage fee support for orders under 15,000 won. Over the next three years, Baemin plans to provide up to 300 billion won in support, which is expected to significantly ease the burden on restaurant owners.

Industry sources predict that for 10,000-won orders, the owner burden rate will decrease by more than 14 percentage points compared to before. A food service industry official said, "Self-employed owners in low-unit-price sectors such as cafes and snack bars now have an opportunity to generate new sales," adding, "Some owners are planning various customized menus, such as half-chicken for one person and side menu sets."

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The rising demand for 'honbap' (eating alone) due to the increase in single-person households, which Baemin is targeting, is confirmed by various surveys. The number of single-person households nationwide surpassed 10 million last year and continues to grow. In particular, among young people aged 25 to 36?the main user base of delivery apps?one in four lives alone, according to a recent survey by Open Survey. Excluding housing costs, this group spends the most on food purchases and dining out. In the same survey, 54% responded that they usually get their meals through delivery or takeout. A Baemin representative stated, "Hangureut is a service that was inevitably introduced in response to the increase in single-person households and the resulting changes in dining demand," adding, "Since customers who use the service once tend to use it repeatedly, we will continue to improve the user environment and expand our marketing efforts."