SEOUL (REUTERS) – Office worker Park Mi-won had never bought her lunch from a convenience store, until her favourite lunch buffet recently raised prices by more than 10 per cent to 9,000 won (S$9.68) as South Korean inflation soared to a 14-year high.
“After the price rise, I went to convenience stores instead, where I thought the prices were reasonable while food also tasted good,” the 62-year-old said. “So now I go there two to three times a week.”
Global food prices surged 23 per cent last month from a year before, according to an agricultural arm of the United Nations. The war in Ukraine has impacted supplies of grains from there and Russia, and caused energy and fertiliser prices to soar.
Offering cheap instant noodles, sandwiches and “gimbap” (rice rolls) for under US$5 (S$6.94), convenience stores are gaining in popularity as salaried workers such as Ms Park seek ways to cut costs.
South Korean convenience shop chain GS25 posted more than 30 per cent increases in sales of instant meals in January to May versus a year ago.
Seeing increasing demand, GS25 has also launched a new meal subscription service for office workers, which comes with price discounts and deliveries directly to offices.
Peers including CU and 7-Eleven have seen similar surges in demand, while Emart24 saw a 50 per cent jump in lunch-box sales in areas with a large number of office blocks.
Those gains came as the prices of restaurant dishes in South Korea rose 7.4 per cent last month compared with a year earlier, the fastest pace in 24 years.
Dubbed “lunch-flation”, the price of beloved dishes such as “galbitang” (beef stew with rice) jumped 12.2 per cent and “nengmyun” (cold noodles) rose 8.1 per cent, according to government statistics.
While convenience store lunches have not been immune from rising costs, their much lower overall prices have helped them gain in popularity.
Around the capital Seoul, average nengmyun prices recently broke above 10,000 won (S$10.75), according to Korea Consumer Agency data, whereas instant ramen noodles are still available at slightly above 1,000 won (S$1.08) at convenience stores.
The Bank of Korea estimates that each 1 per cent price rise in imported agricultural products will push up processed food prices by 0.36 per cent in the next year and restaurant prices by 0.14 per cent in next three years.