Amid rising inflation, the buffet industry, a leading player in value dining, is strategically developing its premium lines. This move aims to enhance profitability by strengthening menu and service elements as food prices surge.
According to the restaurant industry on July 9, E-Land Eats plans to open the 'Ashley Queens Grand NC Department Store Songpa' on July 16. The new location will feature a 20-25% increase in menu items and introduce live grilling, an open sandwich zone, and a pairing zone.
While the weekday lunch price remains unchanged at 19,900 won, the prices for weekday dinners and weekends will rise to 29,900 won, an increase of 4,000 won and 2,000 won, respectively. An E-Land Eats representative stated, "This is a test store to explore various operational methods based on market conditions rather than a new model for expansion."
CJ Foodville has also recently opened a 'Grill Dining' format at its Galleria Gwanggyo location. In addition to the existing salad bar price of 39,700 won for weekday lunch, it has expanded premium options to include 'Signature Grill Dining' at 59,700 won and 'Reserve Grill Dining' at 89,700 won.
Earlier, in May, Auhome opened a casual buffet called 'Take' near Jonggak Station in Seoul, which features a premium option known as the 'Golden Ticket Station.' For an additional 9,900 won, customers can enjoy signature grilled specialties like porchetta and chicken steak.
Kuukuu, a leader in seafood buffets, has designated certain franchises as 'Gold' stores, which operate as premium locations priced 2,000 to 3,000 won higher than regular stores. This initiative, introduced in 2023, currently includes seven Gold locations nationwide.
The industry's focus on premium lines is driven by rising costs. The buffet sector has rapidly grown by leveraging its value image amid soaring dining prices. As of the end of 2024, the number of Ashley Queens locations increased from 109 to 124 in the first half of this year, with a goal of reaching 150 by year-end. Vips has also expanded from 32 to 35 locations. Auhome's Take aims to open its third location this year, while Kuukuu is working towards surpassing 100 locations, including one overseas.
However, the burden of rising ingredient prices is significant. According to the National Data Agency's 'June Consumer Price Trends,' agricultural and marine product prices rose by 3.2% last month, pushing overall prices up by 0.24 percentage points. Notably, livestock prices surged by 6.2%, marking the highest increase since March, with domestic beef (7.5%), pork (4.5%), and eggs (10.3%) all seeing substantial price hikes.
Previously, the industry absorbed price increases through bulk purchasing and self-supply chains, but as inflation persists, companies are seeking solutions by developing premium lines. They are maintaining weekday lunch prices to retain value-seeking customers while enhancing profitability through higher-end models.
The challenge is that the expansion of these premium lines may lead to overall price increases. E-Land Eats has simplified its brand by merging its previously tiered offerings, such as Ashley Classic and Ashley W, into the single 'Ashley Queens' brand, eliminating relatively cheaper options.
An industry insider noted, "In the past, price competitiveness was the most important factor in buffet selection, but now consumers are increasingly considering menu differentiation, ambiance, and service as part of their experience. Companies are expanding premium lines to meet this demand."
* This article has been translated by AI.
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