Convenience stores compete with ultracheap options as restaurant prices soar

Korea Herald

21 hours ago

As food prices keep climbing in South Korea, more people are reaching for ultra-cheap convenience foods to balance their everyday costs. Some of the most popular items now sell for less than 1,000 won (74 cents).
Convenience store chains like CU and GS25 are seeing a boom in low-cost, ready-to-eat items that appeal especially to students, office workers, and low-income families. At CU, nearly one-third of all ready-made meal sales from January to April came from residential neighborhoods, signaling that more consumers are swapping restaurants for affordable meals close to home.
The strongest growth is in ultra-cheap products. CU's private-label instant noodles, 'Deuktem Ramyeon'—which means 'lucky find'—sell for just 480 won per pack, about 35 cents. That's roughly half the price of standard instant noodles. Sales of the product jumped 37.5 percent in the first three weeks of June compared to the same period last year.
The strongest growth is in ultra-cheap products. CU's private-label instant noodles, 'Deuktem Ramyeon,' which means 'lucky find,' sell for 480 won per pack, about 35 cents. That's roughly half the price of a standard pack of instant noodles. Sales of the product surged 37.5 percent in the first three weeks of June compared to the same period last year.
At GS25, another major chain, sales of items priced under 1,000 won have risen sharply for three consecutive years, including a 46.5 percent increase in 2024.
Retailers are also expanding into budget milk, eggs, and ready-made rice. Earlier this month, GS25 introduced 'Hyeja Baekmibap,' a 1,000-won microwavable rice bowl. 'Hyeja' is Korean slang for items that deliver more value than expected for their price.
To maintain low prices without sacrificing quality, retailers are adopting a strategy known as 'reverse development,' in which the final price is set first and the product is developed within that limit. GS25's Hyeja Baekmibap was created under this model to meet the fixed 1,000-won price point.
CU has followed a similar path, releasing milk drinks priced at 880 won and 'Deuktem Eggs,' a 15-egg pack priced at 4,900 won. BGF Retail reports that sales of Deuktem Eggs rose 31.5 percent this month, as national egg prices continue to climb.
The broader economic context helps explain the shift. The Bank of Korea reports that since 2021, prices for daily necessities, including food and basic goods, have increased by 19.1 percent. That's significantly higher than the overall inflation rate of 15.9 percent during the same period. The central bank identifies processed food costs as a key contributor to the gap.
Lower-income households have been hit especially hard. According to Statistics Korea, families in the bottom 20 percent income bracket spent an average of 434,000 won per month on food in 2024, nearly 39 percent more than five years ago. In comparison, food spending across all households rose by about 26 percent.