[Young journalist Hansae Jung] The Korean snack food industry, particularly gimbap restaurants, is being hit hard as the burden of ingredients and labor costs continues to increase. Not only neighborhood snack restaurants but also major franchises are seeing significant declines in the number of stores, which is reducing affordable meal options available to the public.

According to data from the National Tax Service’s Tax Statistics Portal (TASIS) on the 30th, the number of snack food restaurant businesses nationwide stood at 47,863 as of June this year. The figure has not rebounded once for 31 consecutive months since beginning to decline in December 2023. This downward trend has continued since the number fell below 50,000 in September last year.

This phenomenon is the result of a combination of soaring minimum wages and food ingredient prices. Because gimbap requires considerable labor to prepare, increases in labor costs have directly contributed to declining profitability. Also, prices of laver and leafy vegetables have surged due to abnormal weather conditions. According to a survey conducted by the Korea Consumer Agency, the average price of one roll of gimbap in Seoul last month was KRW 3,869, an increase of 6.8% compared to the previous year and the largest increase amongst dining-out items.

The franchise market is facing a similar situation. According to information disclosure documents from the Korea Fair Trade Commission, the number of Gobong Gimbap stores fell significantly from 591 in 2020 to 383 this year. Gimgane also experienced a decline for five consecutive years, falling to approximately 335 stores, while major brands such as Yamsaem Gimbap, Ssa-da Gimbap, and Barda Gimseonsaeng also experienced declines in their numbers of franchise stores.

Companies facing the crisis are seeking self-help measures, including introducing a ‘Grab N Go’ system that allows finished products to be sold immediately, installing automated kitchen equipment, and targeting overseas markets.

▶원문 기사: ‘치솟는 원가·인건비’…서민 한 끼 책임지던 김밥집 줄폐업

◆이코노미스트가 글로벌 차세대 경제 리더, 청소년 기자단 영 저널리스트와 함께합니다. 영 저널리스트 기자단은 프리미엄 경제지 이코노미스트, 논술 전문 기관 Ni 에듀케이션과 함께 주요 시사 이슈를 팔로우업하고 직접 기획, 취재, 기사 작성 활동을 하며 사회적 문제를 고심하고 해결 방안을 제시하는 과정을 경험하게 됩니다. 이번 기사는 영 저널리스트 기자단이 이코노미스트 기사를 영문으로 번역하며 이슈를 팔로우업한 기사입니다. 차세대 글로벌 경제 리더, <영 저널리스트 with  이코노미스트> 영문 기사는 매주 연재됩니다.  
 

ⓒ이코노미스트(https://economist.co.kr) '내일을 위한 경제뉴스 이코노미스트' 무단 전재 및 재배포 금지