Tanghulu fades, Dubai chocolate arrives... Startup boom riding fleeting trends

Riding the Popularity Wave, Startup Boom
71 Ice Cream Stores Opened
Experts Advise "Avoid Premature Startups"

#On the 29th, Dubai chocolates began to be displayed in the showcase of a dessert shop located in Donam-dong, Seongbuk-gu, Seoul. This shop sells a limited quantity of 30 Dubai chocolates in four rounds every day from 2 PM. When the chocolates run out, customers must wait two hours to purchase in the next round. A university student, Mr. Lee (27), living near Donam-dong, said, "I pass by the shop every day hoping to buy some, but I always come up empty-handed," adding, "The showcase is empty shortly after the chocolates are put out."

On the 29th, a sign indicating the shipping time for Dubai chocolate was placed in front of a dessert shop in Donam-dong, Seongbuk-gu, Seoul. The photo (right) shows the Dubai chocolate product from Fix Dessert Chocolatier. [Image source=Photo by Lee Ji-eun, Fix Dessert Chocolatier screenshot]

Recently, as Dubai chocolates and yogurt ice cream have gained popularity mainly among the MZ generation (Millennials + Generation Z), more shop owners are rushing to launch these menu items or start businesses. However, due to the short trend cycle of desserts, there are concerns that deciding to start a business by riding a fleeting trend could lead to closure.

The popularity of these two desserts is also reflected in statistics. According to Google Trends, which measures search volume, Dubai chocolates ranked 2nd and yogurt ice cream franchise brands ranked 5th among dessert-related search terms from July last year to this month. Dubai chocolates surpassed the Google search volume of tanghulu starting last month.

It is analyzed that YouTube short-form content and social networking services (SNS) like Instagram have become the mediums of trend. In the case of Dubai chocolates, popularity began after a dessert review YouTuber posted a video making chocolates released by a confectionery company in Dubai, United Arab Emirates. The yogurt ice cream franchise became a popular dessert as sharing homemade recipes on SNS turned into a trend.

The dessert popularity is leading to actual business startups. According to local administrative licensing data from the Ministry of the Interior and Safety on the 30th, the number of yogurt ice cream franchise stores, which was only two in 2018, increased to 71 startups this year, totaling 327 stores.

However, there are many concerns about startups riding fleeting trends. Many dessert shops that started based on SNS popularity have repeatedly faced closures. Tanghulu is a representative case. According to local administrative licensing data, 35 tanghulu stores opened from the beginning of this year to this month, while 19 stores closed. In the same period last year, 330 stores opened and 69 closed. The number of newly opened stores drastically decreased within just one year.

Previously popular fresh fruit juice and brown sugar bubble tea stores followed a similar pattern. A brown sugar bubble tea franchise that had grown to 52 stores in 2020 shrank to 26 in 2021 and further dropped to 13 this year. A fresh fruit juice franchise that opened 95 stores in 2016 did not open any new stores this year.

Experts advise refraining from premature startups as MZ generation trends are created and spread based on SNS, resulting in short trend cycles.

Professor Eunhee Lee of Inha University’s Department of Consumer Studies explained, "The MZ generation is a group that engages in a kind of 'ditto consumption,' buying products that specific individuals purchase on SNS," adding, "The trend cycle is short, matching the SNS characteristic of enthusiasm for fresh and novel items."

She continued, "Starting a business by riding such trends can lead to quick closures like the tanghulu case," emphasizing, "Instead of opening a shop based solely on popularity, focusing on the qualitative aspects of desserts is necessary to operate with a long-term perspective."