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🇰🇷 South Korea /Economy & Trade

Budget Cafes in South Korea Add Meals to Menus, Becoming 'Eateries'

From Hankyoreh · (6h ago) Korean

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Low-cost coffee franchises in South Korea are expanding their menus to include meal options like kimchi fried rice, tteokbokki, and chicken.
  • This trend, termed 'cafes becoming restaurants,' aims to capture demand from students and foreign tourists, increasing customer spending.
  • Factors driving this shift include longer customer dwell times for studying or working, and the growing popularity of food delivery services, allowing for cross-orders.

South Korea's affordable coffee chains are increasingly transforming into eateries, offering more than just beverages. Mega MGC Coffee, for instance, has seen a surge in orders for its newly launched "Tong Sausage Kimchi Fried Rice" (4,400 won), with sales growing significantly since its introduction. This menu expansion, which includes items like tteokbokki and fried chicken, is a strategic move to cater to the dining needs of younger demographics and international tourists, thereby boosting the average spending per customer.

This phenomenon, dubbed the 'cafes becoming restaurants' trend, is gaining momentum across the industry. Ediya Coffee recently introduced five new meal options, including various fried rice dishes and tteokbokki, and is currently evaluating customer response. Compose Coffee also launched tteokbokki and sandwich items earlier this year, which quickly sold out in some locations. These chains are moving beyond desserts like shaved ice and bungeoppang to offer more substantial meal choices.

During morning hours, foreign customers order kimchi fried rice with their americano.

— Store Manager AA store manager at Mega MGC Coffee's Hongik University Station branch describes the increasing popularity of their new kimchi fried rice menu among foreign customers.

The strategic shift is driven by two primary factors. Firstly, cafes are evolving into multi-purpose spaces where customers spend longer hours for study or work, creating a demand for convenient meal options. This is particularly evident near schools, where students grab a quick bite before heading to academies. Secondly, the burgeoning food delivery market presents an opportunity. While delivery platform fees can be high, offering meal items alongside coffee allows cafes to increase overall sales and offset costs, potentially mirroring the 'all-day dining' concept seen in other countries.

From a local perspective, this evolution reflects changing consumer habits and the dynamic nature of the South Korean food service industry. Cafes are no longer just places for a quick coffee break; they are becoming integral parts of daily life, offering convenience and value. The ability to order a full meal alongside a coffee through delivery platforms also highlights the increasing integration of digital services into everyday commerce, a trend that is reshaping how businesses operate and consumers interact with them.

In the long term, it seems they are trying to approach it through various menus like other countries' 'all-day dining' places.

— Industry InsiderAn industry insider comments on the long-term strategy behind cafes expanding their meal offerings.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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