Fear of Crowds... Foot Traffic at Buffet and Airport Food Outlets Drops Sharply Amid 'New Coronavirus' Panic

From Family Restaurants to Hotel Buffets, Customer Numbers Decline
Over 150 Food and Beverage Outlets at Incheon Airport Hit Hard in Sales
Prolonged Crisis Feared... "Urgent Need for Solutions"

More than 150 food and beverage outlets at Incheon Airport have recently experienced a significant decline in sales and customer numbers due to the COVID-19 pandemic, leading to worsening business conditions day by day.

[Asia Economy Reporter Choi Saeng-hye] As the number of confirmed cases of the novel coronavirus infection (Wuhan pneumonia) continues to rise domestically, the damage to the dining industry is gradually becoming visible. In particular, buffet restaurants where many people gather and airport food and beverage establishments frequented by tourists from various countries are taking a direct hit, with noticeable decreases in customer numbers and sales.

According to the related industry on the 10th, CJ Foodville's buffet restaurant VIPS has seen a slight decrease in customers at stores located in shopping malls and stations with heavy foot traffic since the appearance of confirmed domestic cases of the novel coronavirus. Stores inside Incheon Airport have experienced about a 30% drop in customer numbers.

E-Land Eats' Ashley has also confirmed a decline in sales and customer numbers. MP Group's Mr. Pizza-operated buffet stores have seen an increase in delivery orders while the number of in-store customers has decreased.

The number of customers visiting hotel buffets has also declined. In the case of The Plaza Hotel by Hanwha Hotels & Resorts, the number of buffet visitors decreased by about 10-15% after the novel coronavirus issue. A representative from Courtyard by Marriott Seoul Times Square stated, "It is difficult to ascertain exact figures, but buffet visitors have noticeably decreased since last week," adding, "Subjectively, lunch and dinner customers have dropped by about half." Le Meridien Seoul's buffet Chef's Palette, which was visited by the 19th confirmed case of the novel coronavirus, even had to close temporarily on the 6th and 7th, suffering a blow to sales.

More than 150 food and beverage stores located in Incheon Airport are also experiencing worsening business conditions as sales and customer numbers have sharply declined due to the novel coronavirus situation. A company A, operating concession businesses in Incheon Airport Terminals 1 and 2, reported a 10.8% decrease in customer numbers from the same period last year between the 20th of last month and the 4th of this month. A company A's representative said, "If the situation prolongs, the damage is expected to become even greater."

Company B also saw a 10% decrease in sales at Incheon Airport Terminals 1 and 2 from the 30th of last month to the 5th of this month compared to usual. Company C, which operates food and beverage stores mainly in the arrival hall of Terminal 1, experienced nearly a 30% drop in sales over the ten days from the end of last month to recently compared to the same period the previous month. A representative from company C said, "This is a serious situation where we must consider not only shortening business hours but also suspending operations."

Amid growing concerns among tenants about the prolonged situation, voices are emerging that Incheon International Airport Corporation should reduce rent as a measure to share the burden. During the Middle East Respiratory Syndrome (MERS) outbreak in 2015, Incheon Airport Corporation reduced tenant rents by 10% and has a precedent of temporarily lowering rents when airport passenger numbers decline.

Meanwhile, the Ministry of Agriculture, Food and Rural Affairs and the Korea Foodservice Industry Association have launched a "business damage survey" targeting 600 restaurants and franchises located in 16 metropolitan cities and provinces nationwide since the 5th. The plan is to estimate the scale of business damage and sales losses caused by the novel coronavirus situation and to prepare support measures.