The Dining Industry Rebounds After 3 Years... Sales Soar as Gatherings and Company Dinners Increase

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The dining-out industry, which had contracted due to COVID-19, is showing signs of recovery as gatherings and company dinners increase following the lifting of social distancing measures, marking the first quarterly rebound in three years this year.

According to the Korea Agro-Fisheries & Food Trade Corporation on the 28th, the domestic dining-out industry's sales in the first quarter of this year amounted to 24.7431 trillion KRW, an increase of 16.3% compared to the same period last year. Sales in the dining-out industry, which were around 25.6958 trillion KRW in the first quarter of 2019 before the outbreak of COVID-19, steadily declined to 23.0279 trillion KRW in 2020 and 21.2667 trillion KRW last year, but rebounded this year for the first time in three years. The number of dining establishments, which was 677,123 in March 2019, increased to 702,021 as of last March.

During the same period, the average sales per store also increased. The average sales of dining establishments, which had decreased to 10.66 million KRW in the first quarter of last year after the spread of COVID-19, recorded 11.92 million KRW in the first quarter of this year, showing signs of recovery. This is an 11.8% increase compared to the same period last year. However, it still has not reached the pre-COVID-19 level of 12.78 million KRW in 2019.

As dining demand recovers, the industry's outlook is also brightening. According to CJ Foodville, since the lifting of social distancing on the 18th of last month until the 5th of this month, sales at Vips increased by 70% compared to the same period a year ago. Group reservations for six or more people also increased by about 30% this month.

At La Grillia, an Italian restaurant operated by SPC Group, sales and the number of visitors increased by 20% and 15%, respectively, compared to the same period last year from the 1st of this month to the day before. An SPC official stated, "Since the lifting of social distancing, sales and visitor numbers have increased significantly," adding, "Waiting times during meal hours have lengthened by more than 10 minutes compared to usual, and inquiries for group seating have more than doubled as gatherings increase."

The easing of social distancing and seasonal factors leading to increased outdoor activities are interpreted as overall improvements in the dining-out market. Kim Sang-hee, a researcher at the Korea Foodservice Industry Research Institute, analyzed, "As the transition of COVID-19 to an endemic becomes visible, a significant recovery in the dining-out industry is expected," and added, "With daily life becoming possible again, the proportion of offline restaurant sales will continue to increase."