As Customers Stop Visiting Bars... Restaurants Offer "Tearful Alcohol Discounts"

Restaurant Soju and Beer Prices Continue to Fall
Low-Priced Pojangmacha Bars Gain Popularity Amid Recession
Regular Restaurants Join in With Alcohol Discounts

As people feeling the burden of dining-out prices due to the economic downturn avoid going to bars, restaurants have started lowering alcohol prices, creating a 'price reversal' phenomenon.

Soju is displayed on the liquor sales shelf at Hanaro Mart Yangjae Branch in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

According to the 'March 2025 Consumer Price Trends' released by Statistics Korea on the 6th, the price of soju (dining out) last month fell by 1.3% compared to the same month last year, marking seven consecutive months of decline since September 2024 (-0.6%). The price fluctuation rate for beer (dining out) was also -0.7%. Beer (dining out) has similarly shown a downward trend for four consecutive months since December 2024 (-0.5%).

The soju (dining out) and beer (dining out) categories reflect the prices of alcoholic beverages sold at general restaurants. The decline in soju (dining out) prices compared to the same month last year has occurred only once since the related statistics began in January 2000, which was in July 2005 (-0.8%), and the negative trend in beer (dining out) prices is the first in about 26 years since July-November 1999.

Their 'price reversal' is even more distinctive when compared to other items. The dining-out price inflation rate has exceeded the overall inflation rate for 46 consecutive months since June 2021. The price of other beverages (dining out), which includes drinks like cola and cider, rose by 1.3% last month, and the price of makgeolli (dining out), an alcoholic beverage like soju and beer, also increased by 2.5%.

Although alcohol producers lowered their wholesale prices in December 2023, the prices of soju and beer at restaurants only slowed down but did not turn negative at that time. Experts analyze that more establishments have started operating with losses on alcohol prices, offering half-price soju or free beer to attract customers. Due to the recession and a decrease in customers, prices of soju and beer, which have relatively higher profit margins, were cut. It is practically difficult to lower main menu prices because of the increased burden of food material costs and labor costs.

Low-priced pojangmacha-style bars, considered 'recession-type bars,' are also gaining popularity. One pojangmacha-style bar, which started operations at the end of 2023 and gained popularity by offering beer at 1,900 won per glass and chicken wings at 900 won per piece, has recently expanded to over 180 branches. A meat restaurant franchise offering soju and beer at 2,000 won has also opened more than 220 branches recently, doubling its locations in just over a year. As these places gain popularity, nearby restaurants have been forced to lower their alcohol prices as well, leading to a widespread discount phenomenon on soju and beer prices.