Young people in their 20s and 30s are rushing to start restaurant businesses. The problem is that the success rate of restaurant start-ups is not high. (image: Busan Center for Creative Economy and Innovation)
BUSAN, Jul. 9 (Korea Bizwire) — Young people in their 20s and 30s are rushing to start restaurant businesses, which are referred to as ‘livelihood’ start-ups.
Experts have attributed the trend to the lowered entry barriers in the restaurant industry due to the emergence of various professional franchise companies along with social and structural problems such as poor employment conditions.
According to an analysis of data from the National Tax Service by the Busan Center for Creative Economy and Innovation, there were 50,000 Busan food business operators in the first quarter of this year.
Of the total business owners, 11,000 business owners were aged 39 or younger, accounting for 23 percent of the total.
The number of young business owners increased by 272 or 2.5 percent this year, up 1,500 or 15 percent from the same month three years ago.
The problem is that the success rate of restaurant start-ups is not high.
In a report released by the Korea Food Service Industry Research Institute, the index for the restaurant industry continued to fall to 67.41 in December last year from 69.45 in January. The number is continuing to hit record lows.
The reason for the declining index is due to a growing number of managerial difficulties, including excessive competition and the burden of labor costs stemming from the minimum wage hike.
Therefore, young people in their 20s and 30s who are preparing to start a restaurant business should find a solution for tasks such as securing potential customers and minimizing fixed costs before starting their own business.
Lina Jang (linajang@koreabizwire.com)
