Blockade measures reduce customers
Overseas stores significantly decreased last year
Withdrawal of 271 in China and 108 in the US
[아시아경제 임혜선 기자] Even the magic of’Housebap Baek Sensei’ did not win Corona 19. In spite of the’K food’ craze such as Korean ramen and dumplings, overseas stores of domestic catering companies have been hungry. It was reported that close to 10% of stores disappeared as customers were cut off due to lockdowns (blockades) conducted worldwide.
10% reduction in the number of overseas restaurants for catering companies
According to the 2020 Food Service Business Overseas Expansion Survey conducted by the Ministry of Agriculture, Food and Rural Affairs and the Korea Food and Rural Affairs Corporation on the 26th, the number of overseas restaurants of 2243 domestic catering companies registered in the Fair Trade Commission was 3945 last year, compared to the previous year (4319). 374 fewer. Main areas of decline were China and the United States. The number of Chinese stores decreased by 271 from 1919 to 1648. The number of brands was totaled to 87, down 4 from the previous year. In the United States, the number of stores decreased by 108 from 547 to 439.
The main family of Korean food brands introduced by Mr. Jong-won Baek with the dream of globalization of’K dining out’ cut the number of stores in China from 42 to 22, and the stores operated in Cambodia were closed. Korean food specialty stores, Main Kitchen and Seoul Kitchen, withdrew from China and Japan, respectively. Woo Rae-ok, a specialty store specializing in cold noodles in Pyongyang, who used to promote the taste of Korea in the United States, closed its doors with tears.
Chicken and bread also suffered from Corona 19
Korean chicken and bread (bakery) companies knocking on overseas markets also lowered their heads. Genesis BBQ, a chicken specialty store that was popular along with the popularity of K-dramas in China, withdrew, leaving only one store. Instead, the number of overseas stores decreased from 129 to 93 by increasing stores in the United States and Taiwan.
CJ Foodville’s bakery store Tous Les Jours also closed 72 from 344 to 272. Niche ramen, famous for spicy ramen, also entered China, Taiwan, and Malaysia, but all were closed. There are 11 brands that have been closed in overseas markets. Overseas sales of restaurants also declined. The proportion of stores with annual average sales of less than 1 billion to 3 billion won decreased from 15.6% to 11.3%. Stores with a size of 300 million to 1 billion won also decreased from 24% to 19.7%.
According to a survey by the Ministry of Agriculture and Forestry, about half of the food service companies are reviewing their overseas expansion strategies due to Corona 19. 68% of all respondents said that overseas sales are on the decline.
The food and restaurant industry where there is a conflict
The crisis of catering companies is largely affected by Corona 19. According to the international statistics website World O Meter, as of 10 am on the 25th, the cumulative number of corona 19 confirmed cases in the world reached 11,307 million. Reluctance to face-to-face facilities resulted in a 20.3% decline in sales at overseas stores of catering companies. Instead, food companies that manufacture and sell convenience foods such as ramen, dumplings, and kimchi achieved record highs in overseas markets. CJ CheilJedang’s overseas operating profit rose 49.1% from the previous year, exceeding KRW 1 trillion in annual operating profit. Nongshim and Orion have grown in overseas markets and achieved new performance.
A food service company official explained, “Instead of increasing the number of countries, we are focusing on tweezers investment.”
Experts advised that an active response to the paradigm shift is necessary. Seo Yong-gu, a professor at Sookmyung University, said, “In order to survive overseas, new customer values must be created, such as collaboration between different industries. Said.
Reporter Hyeseon Lim [email protected]