Elandeats family restaurants see surge of customers

[Courtesy of Elandeats]

As a prolonged consumer downturn due to high inflation continues, buffet-style family restaurants are witnessing a significant increase in patronage in South Korea. Elandeats, the operator of Ashley Queens, has seen a rapid rise in both the number of outlets and revenue in 2024 after a steep decline in locations during the Covid-19 pandemic. Known for its value-for-money offerings, Ashley Queens is quickly regaining its foothold in the market.

Elandeats reported that Ashley Queens now operates 90 outlets as of Monday. This is a return to near pre-pandemic levels, as the chain had 95 outlets at the end of 2019. Elandeats plans to expand Ashley Queens to 120 locations by the end of 2024.

“Due to severe operating losses, Ashley Queens reduced its outlets to 55 in 2022. However, consolidating our segmented brands - Ashley Classic and Ashley W - under the premium Ashley Queens strategy proved effective,” a company official said.

The chain revamped its menu extensively starting in 2021, increasing the number of items to over 200 from Korean, Western, and sushi options, which significantly boosted customer satisfaction. Ashley Queens offers a weekday lunch priced at 19,900 won per person, making it particularly popular among office workers.

As Ashley Queens’ brand value rises, Elandeats is rapidly expanding into home meal replacements (HMR) and ready-to-eat foods. The Ashley brand now offers around 150 different convenience foods, and sales are expected to reach approximately 100 billion won ($72.2 million) in 2024. Sales grew by 144 percent From January to May compared to the same period during the previous year.

Eland Group’s retail affiliate, Eland Kim’s Club, launched a specialized ready-to-eat food store, ‘Deli by Ashley,’ at its Gangseo branch in March 2024. It sold 200,000 items within two months of opening for a successful entry into the market, with around 3,000 ready-to-eat food items sold daily on average. Customers are purchasing an average of 6.7 items per visit, with 60 percent of sales occurring during lunch and dinner times.

Elandeats anticipates selling 500 billion won worth of products under the ‘Ashley’ brand across three divisions in 2024. As it expects a sustained demand for value-for-money meals, the company plans to continue its aggressive expansion strategy for the remainder of the year.