In a Seoul snack shop visited on August 13, the sign still prominently displays the word 'kimbap,' but the dish has vanished from the menu. The shop stopped selling kimbap earlier this year, removing its dedicated preparation table and reducing staff by one. Currently, the establishment offers only Korean dishes such as ramen, fried rice, tteokbokki, and stews. The owner, A, stated, "Considering the costs of ingredients and labor, selling kimbap was not profitable, so we ultimately streamlined the menu."
Kimbap, once considered a staple of affordable dining, is losing its place in the restaurant market. The dish's reliance on a variety of ingredients makes it particularly vulnerable to rising raw material costs, while the labor-intensive preparation process adds to the burden of labor expenses.
According to the Korea Consumer Agency's price information portal, 'Chamgak,' the average price of a kimbap roll in Seoul rose from 2,946 won in 2022 to 3,200 won in 2023, surpassing 3,000 won. By June of this year, the price reached 3,838 won, nearing the 4,000 won mark. This represents a 30.3% increase compared to 2022, the highest among major dining options, including jjajangmyeon (22.2%), naengmyeon (22.8%), and samgyeopsal (21.0%).
The steep price increases are largely attributed to rising ingredient costs. Data from the Korea Agro-Fisheries & Food Trade Corporation (aT) shows that the average price of 20 kg of rice increased from 59,090 won in August last year to 61,488 won this August, a 4.1% rise. During the same period, the price of 30 special eggs rose by 4.2%, and the cost of 10 sheets of dried seaweed increased by 6.2%. Prices for processed foods like ham are also on the rise, while vegetable prices are experiencing volatility due to extreme weather conditions.
Labor costs are another significant factor. Kimbap requires multiple ingredients to be prepared, rolled, and cut by hand, limiting the ability to reduce staff. This year, the minimum wage is set at 10,320 won per hour, a 12.7% increase from five years ago, and it is expected to rise to 10,700 won next year.
As costs continue to rise, more snack shops are closing than opening. According to the Seoul Business Analysis Service, only 348 new snack shops opened in the first half of this year, while 461 closed, surpassing the number of openings. The five-year survival rate for these establishments is just 32.1%, ranking ninth among ten subcategories of the dining industry. This means that two out of three newly opened snack shops do not survive beyond five years.
Franchises are facing similar challenges. The first location of the well-known kimbap franchise, Kim Gane, closed its doors on July 31. Data from the Fair Trade Commission shows that the number of Kim Gane locations decreased from 448 in 2022 to 378 in 2024, a drop of 70. Similarly, the number of Gogo Kimbap locations fell from 541 to 450, a reduction of 91. Baruda Kim Seonsaeng also saw a decline from 125 locations in 2023 to 94 last year, falling below the 100 mark.
An industry insider noted, "Kimbap involves many ingredients and requires significant labor, leading to high costs for both raw materials and labor. Due to its perception as a budget-friendly food, it is difficult to keep raising prices, which only increases the profitability pressure on shop owners as costs continue to rise."
* This article has been translated by AI.
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