Dining-Out Prices Up 2.8% Year-on-Year
Home Parties Gain Popularity Amid High Inflation
With the dining-out price index rising sharply last month and the end of the year approaching, demand for home parties is increasing. As the burden of eating out expenses grows and more consumers feel fatigued by the recurring difficulties of making restaurant reservations during the year-end and Christmas season, many are choosing to host gatherings at home instead.
Wallets Stay Shut Amid Rising Dining-Out Costs... Growing Interest in Cost-Effective Home Parties
According to the recent "November Consumer Price Trends" report released by the National Data Office, last month’s consumer price index was 117.20 (2020=100), up 2.4% from a year earlier. This is the same rate of increase as in October (2.4%). After recording a 2% range in June and July, the inflation rate fell to 1.7% in August, then rose to 2.1% in September, and has remained in the 2% range for three consecutive months.
Among these, the rise in dining-out prices was particularly notable. Last month, the dining-out price index stood at 125.7, a 2.8% increase compared to the same month last year, surpassing the overall consumer price index growth rate for the same period. By item, Jajangmyeon saw the largest increase at 6.2%, followed by porridge (6.1%), Jjamppong (5.4%), fried rice and lunch boxes (4.8%), sashimi and coffee (4.4%), pho (4.2%), pork cutlet (3.9%), and kimchi stew set meals, bibimbap, and gimbap (3.8%). This is seen as a result of higher raw material costs due to the strong exchange rate and increased management costs such as labor expenses.
As the burden of dining-out expenses grows, there is a continued trend of reducing dining out and replacing gatherings with home parties. Bang Sojeong (29), an office worker planning to host a home party during Christmas week, said, "While I am generally satisfied with the atmosphere and food at restaurants, the cost is not insignificant. Gathering at home allows us to save money and freely order food that suits each person's preferences." She added, "Another advantage is that we can comfortably talk for a long time in one place without having to move to a second location."
In fact, consumer sentiment toward dining out appears more subdued than before. According to the Bank of Korea's survey, the outlook index for dining-out spending from January to November this year remained below the baseline of 100 every month. This can be interpreted to mean that many households are planning to reduce their future dining-out expenditures.
Some Restaurants Already Fully Booked for Year-End... Fatigue on the Rise
Fatigue from making restaurant reservations at the end of the year is also cited as a reason for the spread of home parties. Popular restaurants are highly competitive to book, and even if you manage to secure a seat, usage time is often limited. In particular, major five-star hotel restaurants in Seoul are virtually fully booked for key time slots not only on Christmas Day but also for most of December.
As reservations become more difficult, there has been a noticeable increase in posts selling fine dining reservation tickets at high prices on secondhand trading platforms. In response, some businesses have strengthened management by introducing regulations that prohibit the transfer of reservations to prevent no-shows and illegal transactions. As reservation competition and usage restrictions intensify, homes-where people can gather more freely without being pressed for time-are becoming an alternative for year-end gatherings.
Park Seohyun (32), an office worker who made a restaurant reservation early for a year-end gathering, said, "I started looking for reservations in early December, but many popular restaurants were already fully booked. Even though it was inconvenient, I had no other choice because the wait times were too long if I didn't make a reservation."
Meanwhile, the retail industry is also holding events to respond to the growing demand for home parties. Lotte Mart is running a "Winter Happy Deal" event until December 17, offering up to 50% discounts on food and supplies for home parties for the Christmas season. Emart is also offering discounts during the same period, focusing on fresh produce such as fruit and meat, as well as ready-to-eat and processed foods. In particular, American LA galbi, scored short ribs, and Australian beef-ideal for main dishes at home parties-are also being sold at discounted prices.
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