"Accumulated Food Waste and Unsettled Staff Positions"... Buffets and Restaurants in COVID Panic

Buffet Brand Suspends Operations... Massive Losses Inevitable with Focused Sales in Seoul Metropolitan Area
Cafes and Other Dining Outlets in 'Temporary Closure' State... Recent Sales Down 80%, Foot Traffic Plummets

On the 19th, the government strengthened social distancing measures in the Seoul metropolitan area to curb the explosive spread of the novel coronavirus infection (COVID-19). Gatherings and events with more than 50 people indoors and more than 100 people outdoors are, in principle, prohibited until the 30th of this month. This applies not only to exhibitions, public hearings, commemorative ceremonies, and recruitment exams but also to private gatherings such as weddings, alumni meetings, 60th birthday parties, funerals, and first birthday parties, which cannot be held with many people present. Twelve types of high-risk facilities will be closed. These facilities include clubs, room salons, and other entertainment bars, colatecs, danran bars, emotional bars, hunting pochas, karaoke rooms, indoor standing concert halls, indoor group exercise (intense GX types), buffets (including those in wedding halls), PC rooms, direct sales promotion centers, and large academies (with 300 or more people). The photo shows the scene of the Youth Street in Jonggak, Seoul, on that day. Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Seon-ae] The dining industry has fallen into a state of panic due to the resurgence of the novel coronavirus infection (COVID-19). Buffets are struggling not only with massive losses caused by the sudden 'COVID-19 shutdown' but also with issues regarding the status of their employees and are scrambling to devise countermeasures. General restaurants and franchise dining outlets have seen customer visits abruptly stop, effectively facing a state of temporary closure.

According to the industry on the 20th, buffet restaurant brands such as VIPS, Gyejeol Bapsang, Ashley, and Olban have completely suspended operations at their metropolitan area stores since the previous day. This is due to the government designating buffet restaurants as 'high-risk facilities' subject to business suspension.

CJ Foodville closed a total of 36 stores located in Seoul, Gyeonggi, and Incheon, including VIPS and Gyejeol Bapsang. Among VIPS' 41 stores nationwide, 29 are affected, and among Gyejeol Bapsang's 13 stores, 12 are affected, making losses inevitable. E-Land Eats temporarily suspended operations at a total of 109 stores across five brands: Ashley, Jayeon Byeolgok, Pizza Mall, Rowoon, and Susa. Shinsegae Food also halted operations at three Bonobono stores and two Olban stores.

Initially, operations are suspended until the end of August, but since the situation is unpredictable, the closures are expected to be prolonged, making significant losses unavoidable for each company. Due to the sudden business suspension, all prepared ingredients must be discarded. Although the stores are closed, monthly rent remains the responsibility of the companies. Additionally, there is deep concern about the status of employees at the affected stores. A buffet industry official said, "If necessary, idle personnel will be sent to support and be dispatched to other brand stores that are operational, but in reality, since there are no customers and the stores are quiet, additional staffing is not needed," adding, "We are deeply concerned about the status of employees who are left in limbo," sighing.

Hotels located in the metropolitan area, such as Seoul Shilla Hotel, Lotte Hotel, Shinsegae Chosun Hotel, and The Plaza, also simultaneously began suspending operations on the same day. Although the hotel industry faced considerable difficulties in the first half of this year due to a decrease in tourists, the food and beverage sector, centered on buffets, performed relatively well. However, with the resurgence of COVID-19 leading to the suspension of buffet restaurants, a deterioration in performance has become unavoidable. There is considerable concern about how to respond to guests who have already reserved and paid for 'breakfast buffet packages.' A hotel industry official stated, "We are considering serving breakfast to guests."

Dining brand stores operated by large corporations are practically in a state of temporary closure. Recently, confirmed COVID-19 cases among employees of several dining brands, as well as confirmed cases visiting stores in Seoul and Gyeonggi, have made cafes and other dining outlets a focal point of cluster infections, causing them to be avoided. Lotte Ria, McDonald's, and Hollys Coffee are conducting disinfection and sterilization of stores and mandating mask-wearing for employees, but there seems to be no effective way to prevent sales decline. An industry official lamented, "With the continuous occurrence of cafe-related confirmed cases, the dining industry is in a state of emergency," adding, "Recent sales have dropped by about 80% compared to the previous week."

The groans of restaurant owners are also loud. Kim, who runs a Korean restaurant in Myeongdong, said, "Since social distancing level 2 was implemented in the metropolitan area, customer visits have stopped as if by a lie, and earning 100,000 won a day is difficult," adding, "I lost my business due to COVID-19 in the first half of the year, then the long rainy season came, and now COVID-19 is holding me back again," showing a distressed expression. Kim continued, "I have no means to endure any longer and am considering closing the business like other nearby stores." Park, who ran a restaurant in Itaewon for five years, closed his store during the Itaewon club cluster infection incident. Park said, "The COVID-19 turmoil is still ongoing, but I think it was a wise choice to close the store quickly before losses grew," adding, "I lost a lot of money, but I am not considering starting a business for the time being." As of the end of July, the total number of self-employed people in Korea was 5,548,000, down by 127,000 (2.2%) from 5,675,000 in July last year. Unless the spread of COVID-19 slows down in the second half of the year, closures of self-employed businesses, especially in dining and lodging industries, are expected to increase further.