[Report] Yongsan Hotspot Capturing 'MZ Taste'... Office Workers' Lunch 'Open Run'

I'Park Mall's Operating Profit Last Year Up 40% Compared to Pre-Pandemic
F&B Expansion Strategy... Doubled Number of Stores
F&B Specialized Stores Targeting 2030 Entered
Proportion of Customers in Their 20s Doubled Rapidly

On the early afternoon of the 30th of last month, I visited the Yongsan branch of I'Park Mall in Yongsan-gu, Seoul. Taste Park, where restaurants within I'Park Mall are gathered, was filled with office workers from nearby office complexes who came to have lunch. With local residents also out for an outing on this warm day, despite it being a weekday afternoon, some restaurants even had long waiting lines.

Cafes and dessert specialty shops located throughout Taste Park and the mall were also packed with customers, leaving almost no empty seats. They were enjoying coffee and desserts while overlooking the scenery outside the window, savoring the leisure of a weekday afternoon.

It was also noticeable that most of the customers visiting cafes and dessert specialty shops in I'Park Mall that day were young people in their 20s and 30s. Although Yongsan Station attracts a large flow of people of all ages, the area where cafes are concentrated was dominated by customers in their 20s and 30s, far outnumbering middle-aged and older customers.

Exterior view of I'PARK Mall The Garden. [Photo by HDC I'PARK Mall]

I'Park Mall in Yongsan is capturing the tastes of the 2030 generation. This is due to increasing food and beverage (F&B) stores such as restaurants, cafes, and dessert specialty shops after the COVID-19 pandemic. By expanding F&B stores beyond being just a shopping mall for shopping, it succeeded in differentiation and also improved its performance.

According to I'Park Mall on the 1st, the Yongsan branch focused on F&B stores as a key point for attracting customers during and after the pandemic. Stores that closed due to decreased customer demand or previously unused spaces were converted into F&B stores. In this process, the scale of F&B stores also increased compared to before. At the end of 2019, before the pandemic, there were about 60 F&B stores in Yongsan I'Park Mall, but by the end of last year, the number had increased to 117. This means the number of stores more than doubled.

Specialized F&B stores by space have also been newly established. Old Ferry Donut, located on the 4th floor where cafes are concentrated, is a brand that I'Park Mall succeeded in introducing for the first time among large shopping malls. Old Ferry Donut, which gained popularity mainly through social media (SNS), also opened a store at I'Park Mall Gocheok branch, making it available only at two I'Park Malls among large malls. Specialized stores by space are also a source of pride for I'Park Mall. In Fashion Park, 'Mulino Espresso Bar,' a popular espresso specialty shop from Hannam-dong, welcomes customers who have finished shopping for clothes, and in Living Park, a furniture and living specialty store area, 'Go Cafe,' a coffee specialty shop operated by the furniture brand Gotre, is located, allowing customers to enjoy furniture and coffee together.

A view of the Gocafe store located in Living Park, a furniture and living store at I'Park Mall Yongsan branch.
[Photo by Lee Myunghwan]

Pop-up stores dedicated solely to F&B are also located throughout the mall. On that day, the pop-up space on the 6th floor of Taste Park was operating a pop-up store of 'Unbalance,' a French dessert canel? specialty shop. I'Park Mall introduced about 200 F&B pop-up stores throughout last year. I'Park Mall is holding a pop-up event until the 30th of next month, showcasing about 20 desserts in a two-month relay. Through this event, I'Park Mall plans to introduce new desserts from around the world every week.

Customers in their 20s and 30s visiting I'Park Mall expressed satisfaction with the variety of F&B stores. Lee Ji-eun (25), who lives near Yongsan I'Park Mall and visits often, said, "I like reading books in cafes, so I come to I'Park Mall frequently. Since there are more cafes than other places, there are many options, so I tend to come often. There are also many restaurants, so it's convenient to have a meal." Park (27), an office worker who took a day off to watch a movie here, explained, "(I'Park Mall) has many restaurants, so it's easy to decide on a menu. There are also many cafes, so there is plenty of space to sit and rest, which makes me come often."

This expansion strategy of F&B stores has proven effective, greatly improving performance. After recovering to pre-pandemic levels, it achieved results exceeding those levels. Last year, I'Park Mall recorded sales of 139.5 billion KRW, which is 15.7% higher than 120.6 billion KRW in 2019 before the pandemic. Last year's operating profit (54.2 billion KRW) also increased by about 42% compared to 38.3 billion KRW in 2019.

F&B stores have played a key role in driving performance improvement. In 2022, when I'Park Mall began actively expanding F&B stores, sales in the F&B sector increased by 46% compared to the previous year. The quarterly F&B sales growth rate in 2022 (compared to the same period the previous year) was also in the 40% range, with a 64% growth rate in the third quarter alone. Last year's sales growth rate was also recorded at 30%.

The F&B expansion strategy also led to a rapid increase in the number of 2030 customers, the main target. As of the end of last year, 60% of members registered in the I'Park Mall membership were in their 20s and 30s, accounting for the majority. In particular, the proportion of customers in their 20s increased from 9% in 2021 to 21% last year, more than doubling. Among generations other than the 2030 group, the composition was 26% in their 40s, 10% in their 50s, 3% in their 60s and 70s, and 1% under 20 years old.

An I'Park Mall official said, "We were able to attract many customers by introducing various brands in line with recent food trends. We will continue to upgrade to provide differentiated experiences to customers not only in F&B but also in fashion, living, entertainment, and other areas."