"Filling a Bag with Cheap Bread" '1000 Won Bread' Selling 2,000 Pieces a Day [Report]

Surging Prices Draw Crowds to 1000-Won Bakery
Generous Shelf Life...Low Margin, High Volume Strategy
Experts Call It a Typical Case of Recession-Driven Consumption

"At least 150 customers visit every day. You can say we sell about 2,000 pieces daily."

At around 11 a.m. on the 11th, I visited a 1000-won bakery inside Dongdaemun History & Culture Park Station in Seoul. The store owner, Mr. Choi (61), poured a pile of bread onto the counter just before lunchtime. Until last year, Mr. Choi sold clothing here. However, as it became difficult to get even one customer a day, he started selling bread in a corner of the store last winter.

Before long, the 1000-won bread became the store’s best-selling product. Mr. Choi smiled and said, "Now, bread sales exceed clothing sales. Customers take their time deciding when buying clothes, but they fill a bag with bread without hesitation."

A 1000-won bakery operating at Dongdaemun History & Culture Park in Seoul on the 10th.
Photo by Lee Ji-eun

Recently, due to high inflation, the 1000-won bakery has been bustling with customers. As the average lunch cost exceeds 10,000 won, a phenomenon called lunchflation (lunch price inflation) has intensified, leading more people to seek affordable meals.

At the 1000-won bakery located near Jonggak Station in Seoul, customers began gathering in small groups as lunchtime approached. Here, packaged bread supplied by a well-known food company is sold for between 1000 and 1200 won.

All products have ample shelf life remaining, and merchants explain that they buy in bulk from suppliers and sell at low margins but high volume. The profit margin per bread is between 200 and 300 won, and stores in prime locations sometimes sell over 1,000 pieces daily.

Bagged bread sold at a 1,000 won bakery inside Jonggak Station in Seoul on the 10th.
Photo by Lee Ji-eun

Mr. Hyun (41), who used to sell fish-shaped bread (Bungeoppang) at a store in Jonggak Station, switched to a 1000-won bakery business at the end of last year. His store also sees about 100 customers daily. Mr. Hyun said, "Customers range from office workers to seniors. Recently, rumors that 1000-won bread sales are booming have led to many new stores opening, increasing competition."

The surge in 1000-won bakeries is linked to rising dining-out prices. On the 6th, Statistics Korea reported that dining-out prices rose 2.8% year-on-year last month. Dining-out prices have exceeded the consumer price inflation rate for 36 consecutive months. Lunch costs have also surpassed 10,000 won. According to SikSin, a food tech company operating a mobile meal voucher service, the average lunch payment at general restaurants nationwide in the first quarter recently reached 10,096 won. Last year’s first quarter lunch cost was only around 9,500 won, marking an increase of nearly 600 won in one year.

As high inflation persists, 1000-won bread has become a welcome option for citizens. It allows people to have a meal at one-tenth the cost of dining out. Especially near university campuses, 1000-won bakeries attract many students with tight budgets. On this day, more than 20 customers visited a 1000-won bakery in front of Sungshin Women’s University Station just in the morning.

A university student, Mr. Kang (23), whom I met in front of the bakery, said, "When I get tired of triangle kimbap, I eat 1000-won bread for a meal. Near universities, meals now cost about 10,000 won, so when my allowance is tight, I often buy packaged bread. I also buy it frequently as a snack to take home."

On the 10th, customers are choosing bread in front of the 1000-won bakery inside Jonggak Station.
[Photo by Lee Ji-eun]

Experts explain that the popularity of 1000-won bakeries is a typical consumption pattern observed during economic downturns. During recessions, consumers tend to seek cheaper products when purchasing essentials like food.

Professor Lee Young-ae of the Consumer Studies Department at Incheon National University explained, "During recessions, purchases of both high-end and low-end products continue, but mid-priced product purchases decrease. Consumers look for cost-effective food products they consume regularly, while luxury goods, which are considered value consumption, continue to be purchased despite price increases. This results in a kind of consumption polarization."