Affordable Meals Sell Well Amid 'Lunchflation'... "Even Cheaper"

Actively Utilizing Morning, Lunch Hours, and Discount Promotion Periods
Increased Sales of Affordable Ready-to-Eat Foods at Large Supermarkets and Convenience Stores

The scene of Myeongdong Food Alley in Seoul on June 14. / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Hyewon] Since the end of last year, prices of fast food items such as hamburgers and pizza have been continuously rising, leading to a surge in demand for affordable "value-for-money menus." Consumers are actively taking advantage of morning or lunchtime hours and discount promotion periods to enjoy the same food menus at lower prices.

According to the industry on the 6th, Lotteria's lunchtime sales in the second quarter of this year increased by 5% compared to the previous quarter, and the number of customers during the same period rose by 13%. In particular, sales of the relatively affordable lunch promotion menu increased by 10% compared to the previous quarter.

Hansot Dosirak, which has employed a "value-for-money" strategy since its early days, recently saw a significant increase in sales among office workers who feel the heavy burden of rapidly rising dining-out costs. According to Hansot, lunchtime (11 a.m. to 2 p.m.) sales in office districts densely populated with office workers in June increased by 23% compared to the same period last year. More than 70% of Hansot Dosirak's entire menu is priced under 5,000 won, with over 60% of the main menu items priced between 4,000 and 5,000 won. Menus priced in the 3,000 won range account for 12% of the total menu.

Sales of inexpensive ready-to-eat foods at large supermarkets and convenience stores are also gradually increasing. Homeplus, which operates a large supermarket "Deli" corner offering a variety of items such as sandwiches, sushi, and hamburger steaks, announced that lunchtime (11 a.m. to 2 p.m.) sales at the deli corner from June 18 to July 17 this year increased by 49% compared to the same period last year. The best-selling products during this period were the 4,990 won cheese hamburger steak and the 7,990 won sandwich picnic box.

The single-serving pizza brand 'GoPizza' is running the 'GoPizza Power Time' promotion to help consumers who find dining out burdensome amid high inflation enjoy pizza without price worries by offering three types of pizza and a cola set at discounted prices.

This promotion is a time sale that offers one popular pizza and a cola for 6,000 won every day from 12 p.m. to 5 p.m.

An industry insider said, "As prices of dining-out foods such as chicken, sashimi, cold noodles, and pizza continue to rise across the board, consumer demand is increasingly shifting toward foods at even slightly lower prices." According to Statistics Korea, the dining-out price inflation rate last month was 8.4%, the highest increase in 29 years and 9 months since October 1992 (8.8%). This is due to the cumulative effect of rising ingredient costs caused by surging international oil and grain prices. The price of chicken, a representative dining-out menu, rose by 11.4%, and sashimi also increased by 10.7%.