Sales of mid- to low-priced buffet restaurants ranging from 20,000 to 50,000 won , such as ‘Ashley’ and ‘VIPS’, are soaring. With the skyrocketing cost of dining out, buffets are recognized as a ‘cost-effective (excellent performance-to-price) dining place’, and demand for groups such as company dinners is pouring in. Those who went through business suspension and restructuring due to Corona 19 are recently switching to aggressive management, such as upgrading stores and opening additional stores.
○ Mid-priced buffet revivalAccording to E-Land on the 22nd, the average monthly sales of all 58 stores of ‘Ashley’ operated by E-Land Eats was 330 million won this year (current standard), up 17.5% from last year’s average monthly sales of 280 million won. This is a level that far exceeds the 220 million won in 2019 before the outbreak of Corona 19. An official from E-Land explained, “In new cities, you have to wait for more than an hour even on weekday evenings.” ‘VIPS’, operated by
CJ Foodville, saw a 50% increase in sales per store this year compared to 2019. From mid-April to the 14th of this month, when ‘Family Month’ gatherings are concentrated, sales per store increased by 70%.
○Reflective profit from soaring food costsThe revival of Ashley and VIPS is largely attributable to demand for eating out after the endemic (endemic of infectious diseases). In addition, regular restaurants such as meat restaurants are also enjoying the reflection effect of a sharp rise in meal prices. Mid-priced buffet restaurants offer a variety of meals as well as coffee and desserts at
20,000 to 50,000 won per person per adult. Another attractive point is that many stores offer unlimited wine and beer service, allowing you to drink alcoholic beverages to your heart’s content.
According to the ‘Participation Price’, a comprehensive price information portal of the Korea Consumer Agency, naengmyeon is 11,000 won per bowl, pork belly (200g) is 20,000 won, and jajangmyeon is 7,000 won.
○Attack management transitionBuffet restaurants are one of the representative industries hit hard by COVID-19. Shinsegae Food’s Korean buffet, Orban, closed its business in 2021. Season’s Table, operated by CJ Foodville, also closed its last store, the COEX Mall in Seoul, in April of last year.
Ashley, the number one buffet restaurant, has also been downsizing its stores. The number of Ashley stores, which exceeded 100 in 2018, decreased to 58 last year. However, as the demand for buffets surged this year, the opening strategy changed drastically먹튀검증.
It plans to aggressively expand to new cities and major commercial districts, increasing the number of stores from the current 62 to 80 by the end of the year. The menu has also diversified. The salad bar menu has been expanded from 80 items to a total of 200 items.
CJ Foodville is competing with gentrification. Instead of reducing the number of stores from 41 in 2019 to the current 28, it chose to transform all stores into “premiumization.” All stores offer unlimited beer and wine. An official from CJ Foodville explained, “Since the provision of unlimited alcoholic beverages, additional orders such as steaks have increased, resulting in an overall increase in sales.”