Corporate cafeterias are in as Koreans seek to beat inflation

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Corporate cafeterias are in as Koreans seek to beat inflation

CJ Freshway's cafeteria in Sangam-dong, western Seoul [CJ FRESHWAY]

CJ Freshway's cafeteria in Sangam-dong, western Seoul [CJ FRESHWAY]

 
Corporate cafeterias have become the go-to lunch places for office workers as the cost of dining out surges due to inflation.  
 
"I need to wait in a long line every time I come here, but I still come to this cafeteria often as the meal only costs 5,500 won [$3.84] for relatively good quality," said an office worker who came to the cafeteria at the National Assembly Museum in Yeouido, western Seoul on Sept. 28.  
 
The office worker, who works near the Yangjae Station in southern Seoul, also often visits the cafeteria at the Kamco Yangjae Tower near the station.
 
"It costs over 5,000 won when we buy gimbap and ramyeon these days," the worker said. "The cafeteria offers healthy meals at a cheap price."
 
As more office workers started to use cafeterias with social distancing measures being lifted in April, sales of major local food distribution companies, including CJ Freshway, Samsung Welstory, Shinsegae Food and Hyundai Green Food, rose sharply in the second quarter on year.
 
 
CJ Freshway's sales surged 25.2 percent on year. Its corporate cafeteria sales rose 46 percent on year.
 
The number of meals catered for offices by Hyundai Green Food increased 18 percent in August on year.
 
"The number of people using cafeteria meals increased even higher than the number before the pandemic with cafeterias being reopened and due to inflation," said a spokesperson for Hyundai Green Food.  
 
To retain these customers, food service companies are adding more variety to their meal options.
 
CJ Freshway uses its meal kits for dishes such as jjimdak (braised chicken with soy sauce) and tomahawk steak to offer special meals and reduce cooking time at the same time. The Thai curry meal kit that was released in collaboration with the local Thai food restaurant Saint Augustin was also a hit amongst customers.  
 
In the April-to-August period, sales of CJ Freshway's meal kit products rose 46 percent on average per month.  
 
Hyundai Green Food is expanding its take-out meal products, like salad and simple lunch boxes. The company also operates a kiosk, where customers can pick up their meals right away, and a ramyeon machine.
 
Ourhome, a food catering company, offers customized healthy meals. Customers are provided with different options, from uncooked to heated meals. Special dishes in collaboration with popular chefs and popular restaurant brands are offered as well.  
 
The sharp hike in food ingredient prices is putting these food services in a deep dilemma.  
 
Prices of cafeteria meals, which vary from 3,800 won to 12,000 won depending on how much the company pays for part of its employee's meals, are relatively difficult to increase.
 
So it is essential that a sufficient amount of ingredients is supplied at appropriate prices.
 
CJ Freshway purchases 35,000 different food ingredients and makes sure to buy enough ingredients that are predicted to be in short supply.  
 
Hyundai Green Food acquires around 10 to 30 percent of its ingredients from March to July as inflation is predicted in the latter half of every year.  
 
Adding gourmet food to their menu is one of the ways that some food services choose to appeal to more customers.
 
"We are planning to add premium meals that are sold at restaurants in department stores to cafeterias," said a spokesperson for Hyundai Green Food.
 
"As customers are tending to reduce their consumption, people who look for cost-effective options, in particular, are using cafeterias," said Lee Eun-hee, a consumer science professor at Inha University.
 
"The popularity of the cafeteria will continue if healthy and special meals catered to people's different tastes are offered."

BY BAEK IL-HYUN, YOO JI YOEN [cho.jungwoo1@joongang.co.kr]
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