Korean Restaurant Chains Shift Tactics
The Korean food service sector has begun to shift its marketing. Food businesses are giving up on low-income earners amid a drawn-out slump that has taken a heavy toll on consumer purchasing power.
In fact, family restaurant chains such the American-based ribs franchise Tony Roma have announced that they their cut-price marketing policy, once popular among chain restaurants, is over. Since 2003, restaurant chains have competed for greater market share by cutting prices and introduce less expensive meals. Many, including Tony Roma, feel this strategy has failed.
Specifically at Tony Roma'’s, sales of meal specials priced below $20 have dwindled considerably, In contrast, sales of meals costing over $20 have doubled.
Interestingly, what continues to stand out when I look at the Korean consumer market is that appealing to the low end of the market seldom works. Koreans appreciate quality and the status it often brings.
In fact, family restaurant chains such the American-based ribs franchise Tony Roma have announced that they their cut-price marketing policy, once popular among chain restaurants, is over. Since 2003, restaurant chains have competed for greater market share by cutting prices and introduce less expensive meals. Many, including Tony Roma, feel this strategy has failed.
Specifically at Tony Roma'’s, sales of meal specials priced below $20 have dwindled considerably, In contrast, sales of meals costing over $20 have doubled.
Interestingly, what continues to stand out when I look at the Korean consumer market is that appealing to the low end of the market seldom works. Koreans appreciate quality and the status it often brings.
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