As food prices rise alongside wages, gimbap shops, a staple of affordable dining, are closing in increasing numbers. This trend is affecting not only small businesses but also brand-name outlets.
According to the National Tax Service's Tax Statistics Portal (TASIS), the number of gimbap shops in South Korea was recorded at 47,863 as of June this year. This marks a continuous decline for 31 months since November 2023, when the number was 54,088. The figure has dropped from 49,913 in September of last year, falling below the 50,000 mark.
Gimbap is known for being an inexpensive meal option that combines rice and various vegetables. However, over the past year, the price increase for gimbap has been particularly notable. The Korea Consumer Agency's price information portal reported that the average price of a gimbap roll in Seoul last month was 3,869 won, a 6.8% increase compared to the same month last year. In contrast, the price increases for other foods during the same period were much lower, with kalguksu rising by 3.6%, pork belly by 3.3%, naengmyeon by 2.2%, and jjajangmyeon by 2.1%.
From December of last year, the price of gimbap rose from 3,723 won per roll in January to 3,800 won, and then to 3,838 won in June, reaching 3,869 won in July.
Gimbap is a labor-intensive dish, meaning that increases in labor costs directly impact its price. The minimum wage rose from 10,030 won last year to 10,320 won this year, a 2.9% increase, with a further increase to 10,700 won expected next year.
Additionally, the rising costs of raw materials have contributed to the increase in gimbap prices. Prices for key ingredients, such as seaweed and spinach, have surged due to what is being termed 'hitflation.'
According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the average retail price for 10 sheets of dried seaweed has increased from 899 won in 2021 to 1,422 won this year.
The trend of gimbap shop closures is not limited to local businesses. Franchise brands specializing in gimbap are also reducing their number of outlets. An analysis of the Fair Trade Commission's franchise business transaction disclosure documents and brand websites revealed that the number of stores for the popular franchise Gobong Min Gimbap has decreased from 591 in 2020 to 383 this year. The operating company, KBM, reported an operating loss of 440 million won in 2024, following a loss of 990 million won last year.
Kim Gane, the second-largest gimbap franchise, has seen its number of stores drop from 459 in 2021 to just 335 this year, struggling with declining profitability. Other brands, including Yamsam Gimbap, Ssada Gimbap, and Bardakim Seonsaeng, are also experiencing a reduction in their outlets.
As the financial situation worsens, many shop owners are considering closing their businesses. One owner of a gimbap shop in Jeju City stated, "I couldn't withstand the rising prices and ultimately decided to close. The cost of ingredients has increased so much that I determined it would be less of a loss to shut down than to continue operating."
* This article has been translated by AI.
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