By Choi Sung-jin
It was not unusual for people to wait nearly an hour to be seated at a family-style casual dining restaurant, such as Outback, TGIF or Bennigan's. Things are different now, though.
Most of the so-called family restaurant chains are struggling to just stay afloat amid the grim business outlook for the coming year, industry sources say.
Family restaurants began to downsize their operations last year. Market leader Outback, for instance, shut down 34 stores over the past year. Since coming to Korea in 1997, Outback increased the number of its stores to 107 in 2014 but has scaled back to 80. TGIF stores have also decreased to 34, from 51 in 2007. Bennigan's, which operated 21 stores throughout the country as recently as in 2013, is now running only two stores.
Industry watchers attribute the decline of family restaurants to their failure to keep up with changing dining trends as well as the increase of single-member households. "The trend is shifting far faster than expected," one industry official said. "Diners are moving to new types of restaurants, such as Korean food buffets and restaurants run by individuals."
Family restaurant franchises are working hard to restore their former glory but prospects are uncertain. The Ministry of Agriculture, Food and Rural Affairs, while releasing "Outlooks for dining-out trends in 2016," paints a gloomy picture for family restaurants.
It cites the emergence of "convenience food" or "home meal replacement" as the biggest threats to family restaurants. As mentioned, the surge in single-member households is also adversely affecting casual dining restaurants, because it is inconvenient, and lonely too, to dine by oneself at these establishments. "The rapid increase of single households has led to the emergence of eat-alone trends and the consequent surge of restaurants catering to singles," a ministry official said.
Another factor is the decline of consumer confidence. A family of four, for instance, spends between 80,000 won and 120,000 won ($68-$102) for an outing at a casual restaurant, which is significantly more expensive than other restaurants, industry watchers note.
It was not unusual for people to wait nearly an hour to be seated at a family-style casual dining restaurant, such as Outback, TGIF or Bennigan's. Things are different now, though.
Most of the so-called family restaurant chains are struggling to just stay afloat amid the grim business outlook for the coming year, industry sources say.
Family restaurants began to downsize their operations last year. Market leader Outback, for instance, shut down 34 stores over the past year. Since coming to Korea in 1997, Outback increased the number of its stores to 107 in 2014 but has scaled back to 80. TGIF stores have also decreased to 34, from 51 in 2007. Bennigan's, which operated 21 stores throughout the country as recently as in 2013, is now running only two stores.
Industry watchers attribute the decline of family restaurants to their failure to keep up with changing dining trends as well as the increase of single-member households. "The trend is shifting far faster than expected," one industry official said. "Diners are moving to new types of restaurants, such as Korean food buffets and restaurants run by individuals."
Family restaurant franchises are working hard to restore their former glory but prospects are uncertain. The Ministry of Agriculture, Food and Rural Affairs, while releasing "Outlooks for dining-out trends in 2016," paints a gloomy picture for family restaurants.
It cites the emergence of "convenience food" or "home meal replacement" as the biggest threats to family restaurants. As mentioned, the surge in single-member households is also adversely affecting casual dining restaurants, because it is inconvenient, and lonely too, to dine by oneself at these establishments. "The rapid increase of single households has led to the emergence of eat-alone trends and the consequent surge of restaurants catering to singles," a ministry official said.
Another factor is the decline of consumer confidence. A family of four, for instance, spends between 80,000 won and 120,000 won ($68-$102) for an outing at a casual restaurant, which is significantly more expensive than other restaurants, industry watchers note.
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