[Exclusive] Korean Buffet Leader 'Gyejeol Bapsang' Exits History... Complete Store Withdrawal

Seasonal Table COEX Mall Branch to Close on 30th This Month
Last Offline Store... Brand to Be Maintained
"Store Operation Not Profitable, Focus on Online Sales"
Korean Buffet Past Its Prime Gradually Developing Ready-to-Eat Meal Business

CJ Foodville Korean Buffet Brand Gyejeol Bapsang COEX Mall Branch. Photo by CJ Foodville

[Asia Economy Reporter Song Seung-yoon] CJ Foodville has made the final decision to withdraw the offline stores of its Korean buffet brand, Gyejeol Bapsang.(Refer to Asia Economy March 18 issue, pages 1 and 6, article ‘The Decline of Korean Buffets’)

According to industry sources on the 15th, CJ Foodville’s Korean buffet brand Gyejeol Bapsang will completely withdraw its offline stores by the end of this month, March 30. The COEX Mall branch in Samseong-dong, Gangnam-gu, Seoul, was the last remaining store in Korea. The contract for this store was set to expire in June, but the company decided not to renew it and opted to close the store slightly ahead of the contract end date.

Although all stores will disappear, the Gyejeol Bapsang brand will be retained and shifted mainly to delivery services and RMR (Ready Meal Restaurant) products. Gyejeol Bapsang peaked in 2017 with 54 stores but will completely vanish within just six years. It was the first Korean buffet brand launched by a large corporation.

CJ Foodville had been deliberating whether to maintain the stores. However, judging that the growth of the Korean buffet market has slowed, they concluded to exit the offline business and focus their capabilities on online sales. The decline in popularity of Korean buffets and the lack of profitability in store operations also contributed. A CJ Foodville representative said, "Unlike other industries, it is difficult to set high prices for Korean buffets, and with the expansion of the non-face-to-face dining market, it was judged that generating profits from offline stores is not easy. While maintaining the brand identity, we plan to continuously offer the menu items previously available in stores through online sales channels, changing only the customer contact point."

Korean buffets were at their peak in the mid-2010s. However, changes in dining trends, the increase in single-person households, and the COVID-19 pandemic created an environment where survival became difficult. Along with the trend of home-cooked meals, dining trends split into fine dining and local popular restaurants focusing on cost-effectiveness. During the early to mid stages of the COVID-19 crisis, buffets were designated as high-risk facilities and had to suspend operations. Naturally, customers began to avoid buffets. Being designated as a suitable industry for small and medium enterprises, which imposed restrictions on new store openings, also made it difficult to open new locations.

E-Land Eats’ Jayeon Byeolgok also peaked with 46 stores in 2016 but now only has 4 stores remaining. Although the number briefly increased to 6 with the opening of 2 additional stores recently, some locations were renewed as shabu-shabu specialty buffet brands. Shinsegae Food’s Olban operated 15 stores in 2017 but exited the offline business early and has long since developed into an HMR (Home Meal Replacement) specialized brand. Most other remaining companies are also closing unprofitable offline stores and entering the online and HMR markets.

An industry insider said, "The trend has shifted from eating a variety of dishes to seeking out quality restaurants, and price competitiveness has also declined. Except for some hotels or premium buffets, pure Korean buffets are likely to almost disappear within the next few years."