2023-12-24 10:07:53
A total of 11,450 businesses closed in November… the highest ever
An average of 34 businesses closed per day, or 1,041 businesses per month.
One in four cafes opened following 2020 will fail
Low prices such as takeout and convenience store coffee
Due to the polarization of people flocking to high-end brand coffee shops
It’s a difficult environment for an ordinary neighborhood cafe to survive.
◆ Two faces of consumption ◆
Quiet cafe store [사진 = 연합뉴스]
The number of coffee shops (cafes) that closed this year reached an all-time high. Considering that the number of low-priced franchise stores and foreign cafes is increasing, it is analyzed that self-employed cafes throughout the neighborhood have been hit hard. There are concerns that difficulties for self-employment will increase as even cafes, which were a relatively easy business to start, have passed their peak.
As a result of Maeil Business Newspaper’s analysis of local administrative license data from the Ministry of Public Administration and Security on the 21st, the number of cafes that reported closure as of November this year was 11,450, the highest number since related statistics were compiled. This means that an average of 34 stores closed per day, or regarding 1,041 stores per month.
In particular, since the self-employed economy worsened in the followingmath of COVID-19, the number of closed cafes has steadily increased to 9,111 in 2020, 9,900 in 2021, and 11,391 in 2022. Among new cafes opened since 2020, the current rate of closure has reached 24%, and half of them have closed this year. It is interpreted that many stores have endured declining sales over the past three years and closed down or closed down their stores in as little as a few months.
It is analyzed that the cafe market has exceeded the saturation point as low-priced Americano coffee franchises and convenience store coffees in the 1,000 won range have recently become popular, and global brands such as Blue Bottle and Tim Hortons have entered the domestic market.
Above all, due to extreme consumption polarization, customers are flocking to convenience store coffee, take-out coffee, or high-end brand coffee that can be enjoyed in a comfortable space, making it difficult for ordinary private cafes to survive.
As more and more places are closing down and new entry is becoming more difficult, the number of new cafe startups peaked at 16,832 in 2021 and has been declining for two consecutive years. The number of cafes founded this year was 12,083, the lowest in eight years since 2015 (11,254).
Eunhee Lee, a professor of consumer studies at Inha University, said, “After COVID-19, the demand for cafe space has increased and low-priced coffee franchises have recently expanded due to high prices, and it seems to have reached a saturation point.” He analyzed, “It is difficult for private cafes that cannot provide good taste and interior design to retain customers.”
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