Buffet Restaurants Disappearing Gradually... Vips Yeongdeungpo Times Square Branch Closing

VIPS Yeongdeungpo Times Square branch closed its business as of December 31, 2019. The photo shows the notice explaining the closure after the store was closed. Photo by Lee Seon-ae lsa@

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[Asia Economy Reporter Lee Seon-ae] Buffet restaurants are gradually disappearing. As home meal replacements develop and restaurants offering both taste and cost-effectiveness increase, buffet restaurants are being pushed out of trends, while rising costs such as labor and rent are causing them to lose their place.

According to the industry on the 10th, VIPS and Jeil Jemyunso Yeongdeungpo Times Square branch, operated by CJ Foodville, closed its business on December 31. A CJ Foodville official explained, "The closure was due to the expiration of the lease contract, and we did not renew it." Although the company is reluctant to explain the background of the closure, the industry views it as a move to pack up due to high cost burdens and lack of profitability.

CJ Foodville has been undergoing business restructuring since 2018. As the market situation rapidly changes, the company is implementing a selection and concentration strategy by further enhancing customer satisfaction at well-performing stores and decisively closing stores with low profitability. Accordingly, the number of VIPS stores, which was 61 at the end of 2018, is now only 45.

The number of stores of the Korean buffet restaurant Seasonal Table, also operated by CJ Foodville, is continuously decreasing. With the closure of the Junggye Homeplus branch on November 30, 14 locations closed last year. Seasonal Table had 54 stores in 2017, but currently operates only 15.

The decline of buffet restaurants, once known as the epitome of family dining, is analyzed to be due to environmental changes such as the increase in single-person households, the development of a food culture that allows easy enjoyment of various dishes, individual active dining preferences, and the emergence of cost-effective popular restaurants. About 20 years ago, buffet restaurants targeting 3-4 person households with abundant menus and spacious venues were popular, but now large venues have become a disadvantage as soaring rents increase cost burdens. First-generation buffet brands such as Bennigan's, Marche, Sizzler, and Tony Roma's have already left the Korean market, and brands still operating are actively restructuring by closing high-cost, low-profit stores or downsizing.

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VIPS is increasing specialized stores with new concepts tailored to the characteristics of each commercial district and customer lifestyles by analyzing each area. Starting with the Jeil Jedang Center branch offering chef-level salads, VIPS has renewed or newly opened stores such as Myeongdong Central branch featuring about 20 types of craft and international beers, Daegu Jukjeon branch with an enhanced dessert section, and Gyesan branch which raised the taste level of all sections including the introduction of a pizzeria. A VIPS official explained, "Specialized stores attracted more than twice the number of new customers compared to other stores, and showed excellent satisfaction and intention to revisit in our internal satisfaction survey."

After the renewal opening, VIPS Gyesan branch saw quarterly sales increase by more than 30% and 25% year-on-year, becoming the top dining spot in the nearby area. The Gyesan branch strengthened services for waiting customers by providing ample waiting seats and a separate playroom where customers can enjoy VR games while waiting. Hapjeong Station branch also has over 45% more customers than the brand average, and Ajou University branch’s sales increased by more than 80% compared to the same period last year after opening. Riding on this success, VIPS recently transformed its first store, Deungchon branch, into 'VIPS Premier,' a premium steak dining concept, and renewed its eighth specialized store, Jungdong Sopung branch, applying the Ajou University branch model.

Seasonal Table IFC branch was renewed at the end of 2018 with the 'Live Studio 8' concept, significantly enhancing live cooking and vibrancy, receiving positive responses.

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