Boxed lunch sales skyrocket

Slump pinches salaried workers' pocket

By Park Si-soo

A bad economy is not always bad to all.

There are companies that cash in on such times. For them, the prolonged economic downturn might be something they hope will continue forever.

Domestic boxed lunch makers are among the biggest beneficiaries. Sales of the mass-produced meals at convenience stores surged a whopping 65 percent during the first half of April, compared with the same period last year, according to the country’s biggest convenience store chain CU. The company also reported a 52.2 percent sales increase of such lunches during January-March from a year earlier, indicating that demand for the ready-made meals is on the rise.

A customer picks up a boxed lunch at a convenience store in Seoul. Domestic convenience stores have seen double-digit sales growth of boxed lunches as people cut their spending on lunch amid the prolonged economic downturn. Korea Times file

Another leading convenience store brand 7-Eleven said its lunch box sales have jumped 61 percent so far this year, compared with the corresponding period of last year. The rise was much steeper at outlets in major business districts in Seoul such as Gwanghwamun, Gangnam and Yeouido, the company said.

Two smaller brands — Ministop and GS25 — also found themselves with brisker sales of the products than in the previous year.

The steep increase is largely propelled by people’s spending cuts on meals amid the prolonged economic slowdown, industry observers said.

A lunch box containing steamed rice and three or four side dishes is priced at less than 4,000 won ($3.6), while having lunch at a restaurant normally costs 6,000 won or more. Restaurant users normally endure extra expense by buying takeout coffee on their way back to the office, which costs around 4,000 won on average.

Simply put, restaurant users tend to spend more than twice as much as lunch box consumers.

“I have saved lots of money with lunch boxes,” said Park Kyung-soo, a foreign currency exchange broker in Yeouido. “I buy a lunch box at a nearby convenient store twice a week. It’s relatively cheap, but the taste is good.”

Another driver behind the growth may be the improved quality of container food, observers said.

Lunch boxes first appeared on the shelves of convenience stores in the early 1990s. They were initially believed to be of poor quality — with rice and side dishes thought to have been cooked using chemical seasoning — so the majority of their consumers, for many years, were money-conscious students and low-income workers, for whom having lunch can mean little more than filling up with anything edible.

“I admit we made products with less care in the past,” said an official at a lunch box company, who asked to have his name withheld because he is not authorized to talk to the media. “But that’s not the case any longer. We work with a great level of care and also with premium ingredients that are never spoiled with chemical seasoning. In terms of quality and taste, ours is good enough to compete with a restaurant meal.”

The official said that the firm’s manufacturing factory operates with the most advanced sterilizing technology and equipment.

Self-development factor

Increasing pressure for self-development is another factor leading more corporate workers to opt for lunch boxes. Such pressure normally increases when economic conditions are tough.

“Twenty minutes is enough to have lunch with it (lunch box). I use the rest of my one-hour lunch break for my development,” said Park Yong-ho, a conglomerate official. “I mostly spend the time reading a book or watching an online English education program.”

Cho Yoon-hee, a marketing specialist at a pharmaceutical company, exercises at a company-run gym after a quick lunch.

“I have a dinner meeting for business almost every day. Such meetings usually lead to heavy eating and binge drinking,” Cho said. “I cannot stay healthy without doing exercise on a regular basis. Lunchtime is the only time for me to exercise without interruption.”

Growing demand for boxed lunches has inspired some local food companies to enter the market.

Harim, a leading poultry processing company, announced early this week it will expand into the lunch business by opening its first takeout premium lunch box outlet in Yeouido next month. The company has formed a partnership with Japanese rice processing company Yunotani to ensure the new business’s successful launch.

“We have created an ideal combination for lunch business,” a Harim spokesman said. “We will serve customers with the best steamed rice as well as side dishes.” The company plans to expand into Japan and Southeast Asian countries.

Japanese takeaway bento supplier Hottomotto opened its flagship store in Seoul last year with the short-term goal of running 200 outlets nationwide by 2015. Its meals are fast gaining popularity with young office workers.