SEOUL: What South Koreans call “family restaurants” – Western-style dining chains serving steak, pasta and salad bars – were once the kind of place families saved for birthdays or graduations in the 1990s and 2000s.
Today, that taste of affluence has worn off in an economy where they now promise abundance at prices that still feel fair, with a new crop of outlets sprouting up.
According to market tracker Euromonitor, the number of family restaurant outlets in South Korea rose from 309 in 2023 to 344 this year, with projections to reach 355 next year.
The market size is climbing in step, from 1.08 trillion won last year to 1.12 trillion won this year, and is estimated to reach 1.17 trillion won next year.
Among the biggest winners are buffet-style chains such as Ashley Queens, run by E-Land Eats, whose store count nearly doubled from 59 in 2022 to 115 this year.
When a bowl of bibimbap now costs over 11,000 won, a 19,900 won weekday lunch or 25,900 won dinner at Ashley, set with a smorgasbord of more than 200 dishes, has become a go-to for office lunches and casual gatherings.
According to Statistics Korea, the consumer price index for dining out reached 124.56 in May, up 24.6% over the past five years.
Of 39 tracked dishes, 30 have risen more than 20%, with gimbap up 38% and tteokbokki 35%.
“With eating out remaining high since the pandemic, our value-driven brands have gained strong traction,” an official from E-Land Eats explained.
The company’s revenue jumped 32% to 470.5 billion, with operating profit up 79% to 31.9 billion won, about 70% from Ashley alone.
A similar revival is underway at VIPS, CJ Foodville’s flagship buffet chain, which has rebounded from 25 stores in 2022 to 34 today.
“As prices climb, more customers are seeking out VIPS for a taste of upscale dining that still feels affordable,” a CJ Foodville official said.
Industry officials say part of their appeal now lies in playful collaborations from VIPS with Michelin-starred TukTuk Noodle Thai to Ashley Queens with kiwi brand Zespri for seasonal desserts.
“These so-called family chains see collaborations as a way not only to expand variety, but also to create fun and build brand buzz on social media,” an industry official said.
Yet for all the momentum, it’s still unclear whether these chains, particularly those outside the buffet model, are winning by a long shot.
Outback Steakhouse has reinvented itself as a casual dining restaurant and now operates 101 stores, up from 88 in 2022.
The brand’s reinvention includes collaborations such as its Jurassic World–themed menu and relocations to more accessible sites.
Yet, Outback Steakhouse’s growth plateaued last year, with revenue slipping 5.9% to 430.6 billion won and operating profit down 30.9% to 54.6 billion won, despite steady gains since 2021.
Fading into history earlier this year was TGI Fridays, which exited the South Korean market after more than three decades.
MFG Korea, which had operated the brand alongside its Italian-style chain Mad for Garlic, said the decision to withdraw was made to focus resources on its garlic-themed flagship.
The company reported 105.7 billion won in revenue last year, down 17.7% from a year earlier, and swung to an operating loss of 7.5 billion won.
“The current boom in family restaurants doesn’t guarantee long-term success,” said another industry insider.
“With dining trends shifting so quickly, brands need a sharper identity and more distinctive service to sustain customer loyalty.” — The Korea Herald/ANN
