As more employees opt for corporate cafeterias to alleviate dining costs, the group meal service industry is expanding its business base. Companies that have enhanced their lunch offerings with competitive pricing and diverse menus are now broadening their growth strategies through online food distribution and international ventures. Investments are also ongoing to improve the competitiveness of existing operations through customized meal plans and kitchen automation.
According to industry reports, the rising costs associated with dining out, referred to as 'lunchflation,' have highlighted the price competitiveness of corporate cafeterias. A survey by the mobile meal voucher service 'SikSin e-Voucher' found that the average lunch price at regular restaurants in Seoul soared to 11,586 won in the second quarter of this year. In contrast, the average lunch price at corporate cafeterias was reported at 7,919 won, making it approximately 3,600 won cheaper per meal.
The increased demand for meal services due to dining cost pressures and the expansion of new contracts have contributed to revenue growth for major meal service companies in the first half of the year. CJ Freshway reported sales of 1.7571 trillion won, a 4.5% increase from the previous year. Samsung Welstory and Hyundai Green Food saw their revenues rise by 7.0% and 8.4%, respectively, reaching 1.7110 trillion won and 1.2165 trillion won. Our Home recorded sales of 1.4032 trillion won.
Companies are accelerating investments to enhance operational efficiency and secure new revenue sources based on their accumulated expertise in food procurement, logistics, and menu development within the group meal service sector. They are refining growth strategies tailored to their strengths, such as expanding transaction bases through online platforms or acquiring new customers overseas.
CJ Freshway is targeting the online market by strengthening integrated delivery services linked to its logistics network through its B2B food distribution platform, 'Sikbom.' The platform's cumulative transaction volume for the first half of the year reached 151.3 billion won, a 25.8% increase from the previous year. In the meal service sector, they are developing a 'kitchenless' model aimed at small offices and industrial sites where securing cooking facilities is challenging. This strategy aims to reduce kitchen space constraints and expand the customer base for meal services through ready-to-eat meals and mobile catering.
Samsung Welstory is focusing on expanding its overseas operations and building smart kitchens. The company plans to increase its overseas sales proportion from the current 9% to 30% by 2033 by expanding its presence in the U.S., China, Vietnam, and Hungary. Domestically, they are implementing automation and intelligence solutions across the entire meal service process, from food preparation to cooking, serving, and cleanup. They aim to reduce labor burdens and enhance operational efficiency with kitchen robots that can be utilized during the serving stage.
Hyundai Green Food is leveraging its nutritional planning capabilities in the meal service sector to expand into care food and the general consumer market. Through its customized care food brand 'Greeting,' the company is broadening its product range to include low-aging diets and disease-specific meal plans, while also targeting both meal service and home meal markets using the manufacturing capabilities of its smart food center. They are focusing on acquiring new clients in markets like China and the U.S., with overseas meal service revenue in the first half of the year reaching 30 billion won, an 18.1% increase from the previous year.
Our Home is enhancing collaboration with affiliates and adopting food tech since its integration into the Hanwha Group. By utilizing the group's infrastructure, including Hanwha Hotels & Resorts and Hanwha Galleria, they aim to improve food procurement efficiency and expand the application of AI-based demand forecasting and logistics and robot automation technologies. They are also broadening their overseas business scope to North America, with a goal of achieving 5 trillion won in sales and 300 billion won in operating profit by 2030 through group synergies and business expansion.
While the meal service industry has seen recent sales growth due to factors like 'lunchflation,' uncertainties remain. The rising costs of food ingredients and labor make it challenging to improve profitability, and concerns about long-term declines in meal consumption due to low birth rates and an aging population persist. In the first half of the year, only Hyundai Green Food saw a 33.9% increase in operating profit, while CJ Freshway and Samsung Welstory experienced declines of 9.2% and 3.1%, respectively.
An industry insider stated, 'Given the anticipated long-term decline in meal consumption due to low birth rates and an aging population, it is essential to break away from existing frameworks and improve our business model. Exploring overseas markets and online B2B food distribution to discover new growth drivers is crucial at this juncture.'
* This article has been translated by AI.
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