밀키트 창업In the aftermath of the novel coronavirus infection (Corona 19), adaptability and preference for unmanned stores have increased, and the decreased demand for eating out has had an impact on ‘home meals’ and ‘meal kits’.
According to the Korea Rural Economic Institute on the 10th, the size of the meal kit market last year is expected to reach about 300 billion won. This figure has jumped by more than 100 billion won from 200 billion won in 2020.
It looks like it will be even bigger this year. Presage, the No. 1 company in the domestic meal kit market share, is expected to achieve sales of 200 billion won last year. This is an increase of approximately 57% compared to the previous year and is equivalent to the size of the entire meal kit market in 2020.
Considering that Presage’s industry share is about 60%, the prevailing view is that its market share this year will exceed 300 billion won. This is because many distribution brands, such as E-Mart and Lotte Mart, are increasing their meal kit products, and the penetration rate of local commercial districts is also rapidly increasing due to the increase in meal kit brands.
The meal kit craze is especially strong in the startup market. There are already close to 40 to 50 meal kit-related franchise brands registered with the Fair Trade Commission. Damkuk, the brand that selected the initial meal kit market, surpassed its 200th store in just six months.
Currently, offline meal kit specialty stores operate in two main forms. One is a meal kit specialty store that is completely 100% unmanned. It is a meal kit specialty store that operates unmanned, with CCTV installed and the owner working in the store for about 1 to 2 hours. Another is a meal kit specialty store run by a single person. The owner is responsible for preparing meal kit products by preparing vegetables, mainly green onions, in a kitchenette at the back of the store and then selling them on a timely basis.
Among these, the number of unmanned store start-ups is increasing significantly. The biggest advantage is that the barrier to entry is low. There is no need to have any special cooking skills or know-how, and interior design costs and kitchen equipment are included in half of the restaurant brands, so start-up costs are low and opening is possible in a short period of time. The cost of meal kit products supplied by franchisees is around 45-60%, which is slightly higher than the 35-45% cost of food ingredients in the general restaurant industry. As a result, the industry explains that the average cost of starting a 10-pyeong meal kit specialty store is around 40 million won, excluding store purchase costs.
Labor costs can also be minimized. It is possible to run a store with a relatively small staff to receive products and display them in the refrigerator, and even this is operated unmanned 24 hours a day using kiosks, and many brands advocate a ‘completely non-face-to-face business model’. Therefore, the margin rate is relatively high. Excluding other costs such as management fees, the rate of return is around 30-35%, and can be as high as 40% or more.
However, startup experts say that profitability must be carefully considered. Recently, unmanned meal kit stores have been popping up in droves, raising concerns about ‘oversupply’. As a result of looking around Hagye-dong, Nowon-gu, Seoul, two other meal kit stores were already operating 500m away from meal kit company A, and there were about 10 various takeout specialty stores that could be considered competitors.
According to the startup consulting industry, location is important when starting a meal kit business. The key to finding the optimal location is a store on the first floor with a frontage of at least 4 meters, good visibility, a monthly rent of not more than 2 million won, and good customer accessibility.
A thorough analysis of investment profitability is also necessary. Currently, the investment amount of offline meal kit specialty stores is around 40 million, excluding store costs. Including stores, start-up capital of around 80 million to 100 million won is invested.
Profitability varies. If the average monthly sales is set at around 20 million won, the cost will be at least 50% and close to 70% at the most. The store owner’s net profit, excluding sales and administrative expenses such as rent, is around 2 to 4 million won per month. Therefore, it is necessary to first verify the profitability of 20 million won per month. 40 to 50 customers with a unit price of around 15,000 won must make purchases per day. This means that a thorough profitability and feasibility analysis must be followed.
Additionally, due to the recent indiscriminate expansion of meal kit stores, there is a strong possibility that the company will enter a period of restructuring in the short term. This is something that any meal kit entrepreneur must keep in mind.
An official in the startup consulting industry said, “There is no doubt that the meal kit market is growing steadily, but it is true that there are too many meal kit brands in the startup market.” He added, “Entrepreneurs must carefully choose a location and decide to start a business carefully. “It’s time to do it,” he explained.
