Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
In slumping economy, small businesses connect with young consumers over 'smart deals'
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By Lee Yeon-woo
Apps offer discount for last-minute purchases
Traditionally, price competition in Korea’s food service industry has centered on restaurants lowering their prices — particularly on high-margin items like beverages. Supermarkets and convenience stores also typically offload excess inventory in bulk at discounted prices.
But now, a more systematic trend is taking hold among individual business owners, which is also attracting budget-conscious customers.
Jeon Sae-mi, an office worker in her 30s who used to rely on her go-to delivery app for dinner at home, recently tried a new app her colleague had recommended.
The app, Lucky Meal, connects users with restaurants, cafes and bakeries offering freshly made but unsold food at about half the original prices when they close at the end of the day.
Browsing the app, Jeon picked a nearby shop selling side dishes. She placed an online order for a bundle of side dishes, paying just 7,400 won ($5.19) — half the regular price. She picked them up right away.
"The side dishes were still in great condition, and the owner added a few extras for free," she said. "I would definitely use it again. Not only are my husband and I sick of food delivery, but this also helps us scrimp and save."
As economic uncertainty continues to tighten household budgets, small businesses are turning to platforms like Lucky Meal as a way to generate last-minute revenue and reduce food waste.
"Our food waste has dropped significantly," said a bakery owner who uses Lucky Meal in Seoul. "Now, customers even come in (without using the app), specifically looking to try different types of bread. We’re grateful."
The left image shows a map of stores participating in the Lucky Meal app, while the right one displays some cafes listed on the Rife app. Screenshot from each app
Platforms like Lucky Meal aren’t the only ones finding success by appealing to budget-minded consumers.
Another app, Rife, offers a coffee subscription service. It lets users choose from over 300 cafes and, for a monthly fee of around 40,000 won, enjoy one cup of coffee each day.
For cafe owners, the app helps generate more stable revenue by attracting customers even during off-peak hours, with the added potential of dessert or snack purchases.
"Our store is tucked away in a quiet spot on the outskirts, but the daily visits by the Rife regulars bring a lively energy to the space. This seems to leave a positive impression on other customers as well," said a cafe owner in Busan who uses Rife.
Rife's website even posted a notice that its response times may be delayed due to an overwhelming number of consultation requests from cafe owners.
A woman walks past shuttered cafes along a once-crowded street in Seoul, Feb. 17. Yonhap
Through these online platforms that allow them to sell surplus food directly to budget-conscious consumers, they are trying to survive some of the toughest conditions they have faced.
According to Statistics Korea, nearly 200,000 self-employed individuals closed their businesses in the past two months. As of January, the number of self-employed people in Korea stood at 5.5 million — the lowest in two years, dating back to the level during the COVID-19 pandemic.
And fortunately, these new efforts are aligning with growing demand from younger consumers like Jeon — many in their 20s and 30s — who are navigating tighter budgets but are also digital savvy. Users in this age group made up 69.6 percent of Lucky Meal’s approximately 100,000 cumulative users.
"Everything feels so expensive these days. I'm cutting back on eating out, so it's great to have any chance to save, even just a little," said Choi, a graduate student based in Seoul.
Market watchers believe the trend is expected to continue, especially as the sluggish economy is expected to persist for some time.
A February survey by the Korea Economic Research Institute found that 61.2 percent of 500 self-employed respondents expect their sales to decline in 2025 compared to 2024.