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.
“But the risks are low and I’ll have the opportunity to experiment with various menus without high cost,” he said, adding his rent will fall by roughly two-thirds. “That Kalanick and other investors are entering Korea speaks to its attractiveness as a market for cloud kitchens. It’s a big market and is growing faster than the U.S,” said Jimmy Kim, CEO of investment firm SparkLabs.
“Investors are plowing money into South Korea which is coming to the fore in the global delivery market,” said WECOOK CEO Andy Kim, adding he expects shared kitchen firms to use lessons learned in Korea and apply them to other Asian markets.While shared kitchens are growing in popularity in many countries including the United States and China, the South Korean market is seen as particularly ripe for development of delivery-only restaurants.
Single person households accounted for 29% of South Korean households in 2018, almost double 2020 levels as high living costs make marriage and children a less popular option.
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