Hotel Chef Starts Kimchi Business
Sends Cafe Coffee Beans and Wedding Hall Flowers to Homes
To Align with Contactless Consumption and Seek Differentiation
[Asia Economy Reporter Jeon Jinyoung] Recently, the hotel industry has been competing with unique services that deliver kimchi, coffee, flowers, and more directly to customers' homes or offer subscriptions based on frequency or duration. This marks a shift from the traditional meal kit business that the entire hotel sector has been involved in, aiming for differentiation. This trend appears to align with the 'contactless consumption' pattern changed by COVID-19 and to increase brand awareness.
According to the hotel industry on the 20th, a representative unique business currently underway is kimchi, with Walkerhill and Chosun Hotel focusing on it. Walkerhill operates a premium kimchi called 'Walkerhill Supex,' which the hotel chef personally prepares daily. For an annual delivery subscription priced at 1.34 million KRW, 2kg of kimchi is delivered twice a month, totaling 48kg per year, directly to the customer's home. The current number of subscription accounts has increased by 50% compared to last year, reaching around 600, showing popularity, with the main purchasing age group being those in their 40s and above. Chosun Hotel & Resort sells a total of 22 types of kimchi, including the premium brand 'Chosun Hotel Kimchi' and the popular brand 'Peacock Chosun Hotel Kimchi.' From January to October this year, cumulative sales increased by 25% compared to the previous year. A Chosun Hotel representative stated, "Considering the nature of kimchi, which rarely has new products, this is a meaningful performance."
Hotel coffee beans and coffee subscription services are also popular. Signiel Seoul offers a subscription service for hotel private brand (PB) products that were previously only available at Signiel brand hotels. The coffee master carefully selects ‘Signiel 79’ and ‘Signiel 123 Blend Coffee,’ which are bundled and delivered monthly to subscribers' preferred locations. The subscription fee is 864,000 KRW annually, which is a 20% discount compared to regular purchase prices. Westin Chosun Seoul and Grand Chosun Busan operate monthly coffee subscription services, allowing customers to choose between 15 or 25 cups per month. Dragon City also provides a subscription service where, upon payment, subscribers can enjoy 30 cups of coffee per month at the caf?. A Dragon City representative said, “Subscribers include not only long-term hotel guests but also a high proportion of nearby office workers. Many people continue to renew their subscriptions once they start.”
Hotels famous for weddings are introducing flower services. Chosun Hotel & Resort’s flower shop 'Gyeokmul Gongbu' currently delivers seasonally appropriate plants every two weeks through two branches. Similarly, Glad’s 'The Saint,' which is in charge of hotel wedding flowers, delivers flowers including vases and flower preservatives to homes every other Wednesday. The current cumulative number of subscription accounts is around 100, with sales particularly high during spring and family month seasons.
The hotel industry is putting effort into these unique businesses to keep pace with the contactless consumption pattern caused by COVID-19 and to establish competitiveness for each hotel. An industry insider said, “Unlike the meal kit business that everyone is entering, hotels are leveraging their strengths in food and beverage or wedding sectors to seek differentiation. The increase in regular delivery services is also due to the strengthened contactless consumption pattern after COVID-19, which has led to more consideration of services hotels can offer beyond just accommodation.”
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