Appetizing prospects: Uber founder takes aim at South Korea's shared kitchen market

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 66%

Business News News

Business Business Latest News,Business Business Headlines

SEOUL: Chef Youm Jung-phil plans to close his restaurant in Seoul's affluent Gangnam district this month, worn down by the rising cost of labor ...

SEOUL: Chef Youm Jung-phil plans to close his restaurant in Seoul's affluent Gangnam district this month, worn down by the rising cost of labor and rent as well as declines in the number of customers eating in.

That, plus a near 30 per cent rise in the minimum wage over the past two years, is helping drive a rapid shift to shared kitchens and delivery-only businesses, industry executives and investors say - a shift which threatens the traditional restaurant industry.South Korea is the first overseas market Los Angeles-based CloudKitchens has entered under its own brand, people with knowledge of the matter said.

CloudKitchens, which also offers restaurant owners marketing support, is a unit of shared service provider City Storage Systems which scandal-hit Kalanick bought last year for US$150 million after stepping down as Uber CEO. Kalanick has since acquired UK commercial kitchen firm FoodStars and is reportedly looking at investing in China.

Its online market for food delivery and pickup more than doubled over the past five years to US$5.9 billion - bigger than Japan and Germany's markets combined and trailing only China, the United States and the United Kingdom, Euromonitor data also showed. Euromonitor expects the South Korean market to grow to US$9 billion by 2023.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Seoul: Stock woes deepen as new trade war with Japan roils market[SEOUL] Investors who have stomached the ups and downs of South Korea's stock market this year have just been dealt another blow: resurgent tensions with Japan. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

South Korea: Shares fall further on pharma stocks[SEOUL] South Korean shares extended falls on Tuesday, dragged by pharmaceutical stocks, while a trade row between Seoul and Tokyo showed scant signs of abating. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »