"No More Unnecessary Fried Dumplings: Baemin Bets on 'Hangureut' for Single-Portion Orders"

Targeting the Growing Single-Person Household Market, "Hangureut" Service Gains Popularity
Fee Support for Small-Amount Orders Creates New Revenue Opportunities for Small Business Owners

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Baemin's "Hangureut" service has shown results just over a month after its launch. The service, which targets the growing number of single-person households by removing the minimum order amount and making it convenient to order single-portion meals, has been well received. As Baemin expands its support for small-amount order fees and delivery charges, "Hangureut" is expected to not only enhance consumer convenience but also help improve the actual profits of participating restaurants.

According to Woowa Brothers, the operator of Baemin, as of the fourth week of June, the number of orders in the "Hangureut" category had increased about 12-fold compared to the first week of May, when the service was first launched. The company explained that the service is rapidly gaining popularity, with order volumes rising sharply each week. The number of restaurants participating in Hangureut also increased by 2.6 times in June compared to the previous month.

The main reason for Hangureut's popularity is its improved user experience, which allows anyone to easily and quickly order a single portion. Previously, customers had to manually search for single-portion menus or add unnecessary items to meet the minimum order amount. Baemin went beyond simply grouping single-portion menus, eliminating the minimum order requirement and revamping the user interface (UI) to make menu navigation easier. Now, customers can order their desired single-portion meal with just a few clicks.

The service is also expected to improve the profits of participating restaurants. While delivery demand from single-person households has continued to rise, the high commission burden for small-amount orders has been a major obstacle for restaurants. For example, when a customer placed a 10,000 won order, the business owner’s burden rate, including the intermediary fee and rider delivery fee, exceeded 40%. However, Baemin recently announced plans to exempt intermediary fees for orders under 10,000 won, provide tiered support for delivery fees, and offer differentiated intermediary fee support for orders up to 15,000 won. Over the next three years, the company will provide up to 300 billion won in support, which is expected to significantly ease the burden on business owners. Industry insiders estimate that for 10,000 won orders, the business owner’s burden rate will decrease by more than 14 percentage points compared to before. A food service industry official said, "Self-employed owners in low-priced sectors such as cafes and snack bars now have an opportunity to generate new sales," adding, "Some owners are planning various customized menus, such as half-portion chicken for one person and side menu sets."

The growing demand for "honbap" (eating alone) among single-person households, which Baemin is targeting, is also confirmed by various surveys. The number of single-person households nationwide surpassed 10 million last year and continues to rise. In particular, according to a recent survey by Open Survey, one in four young people aged 25 to 36?the main user group of delivery apps?are living alone. Excluding housing costs, this group spends the most on food purchases and dining out. In the same survey, 54% of respondents said they usually get their meals through delivery or takeout. A Baemin representative stated, "Hangureut is a service that was inevitably introduced in response to the increase in single-person households and the resulting changes in dining demand," and added, "Since customers who use the service once tend to use it repeatedly, we will continue to improve the user experience and expand our marketing efforts."