Due to a decline in consumer sentiment, cost-effective 'buffets' have emerged as popular choices.
On the 24th, fintech company Finda analyzed data through its AI commercial district analysis platform ‘OpenUp’ and found that last month, the nationwide food service industry sales amounted to approximately 10.6396 trillion KRW. This represents a 2.16% decrease compared to the same period last year (10.875 trillion KRW). It is also about 8.35% lower than August (11.6086 trillion KRW), reflecting a freeze in consumer sentiment due to the end of the holiday season and high inflation.
Looking at the 17 metropolitan cities and provinces nationwide, 10 regions experienced a decline in sales compared to the same period last year, while 7 regions saw an increase, showing regional disparities. Seoul recorded the largest drop nationwide with a 5.37% decrease in sales and a 5.37% reduction in the number of transactions.
Among the 14 industries across the 17 regions, ‘buffet’ showed the highest sales growth rate. The region with the most significant increase was Ulsan, with a 311.6% rise compared to the same period last year. Following were Chungnam (49.8%), Chungbuk (26.5%), Jeju (25.5%), Incheon (19.6%), and Gyeongbuk (16.2%), all showing buffet sales growth that drove local sales.
When looking at the overall industries, only buffet (23.78%), fast food (6.39%), Japanese cuisine (3.59%), and cafes (0.62%) showed sales growth compared to the same period last year. All other sectors recorded a decline in sales. The average spending per customer increased by 7.16%, 11.25%, and 2.84% respectively for buffet, fast food, and Japanese cuisine, indicating that the main cause was a rise in food prices rather than an increase in transaction volume.
Hwang Chang-hee, head of Finda OpenUp service, said, “Despite the rise in average spending per customer, the sales growth trend in cost-effective sectors such as buffet and fast food continues,” adding, “Since there are significant disparities in food service sales by region and industry, it is advisable for prospective entrepreneurs and self-employed individuals to consistently check trends according to specific industries and timing.”
Meanwhile, OpenUp, acquired by Finda in July 2022, processes over 130 million accumulated sales big data using AI technology to provide highly accurate estimated data. Finda offers the commercial district analysis service completely free on the OpenUp website and updates sales and new store status of commercial districts nationwide every month.
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