Department stores attract popular univ. eateries to boost customer dwell time

‘Tting Ramen,’ a popular eatery near Sungshin Women’s University, is bustling with customers in the Hyundai Department Store Mia Branch food court. [Courtesy of Hyundai Department Store]

South Korean department stores are increasingly bringing in popular university-area eateries to attract younger customers and extend their time spent in-store.

According to Hyundai Department Store on Tuesday, the company has revamped the basement food court of its Mia branch in Seoul, incorporating 12 food and beverage brands, including five well-known university eateries. Among these are Hansul Sikdang (Korea University), Tting Ramen (Sungshin Women’s University), Jeongdon (Sungkyunkwan University), Ak-uh Tteokbokki (Hanyang University), and House Patisserie (Dongguk University). Notably, Hansul Sikdang, known for its rice bowl dishes near Korea University, and Tting Ramen, famous for its homemade ramyeon broth, have opened their first department store outlets at this location.

Hyundai Department Store’s Trade Center branch recently welcomed Butter Record, a popular eatery from Pusan National University. Jeongdon, a famous pork cutlet restaurant near Sungkyunkwan University, has expanded its presence across Hyundai Department Stores, with branches in Mia, Pangyo, Mokdong, and Apgujeong.

Lotte Department Store has also been actively introducing university-area restaurants to its regional outlets. The Lotte Mall Suwon branch unveiled “Dining Avenue,” a premium food hall, in April, featuring Matsuno Hana and Siki Katsu, renowned eateries from Daehangno and Kyung Hee University, respectively. Lotte Department Store’s Incheon branch introduced Lee Seok Deok Handmade Pasta from Ewha Womans University in March last year and Austin Taco from Sharosugil (Seoul National University) in December.

The strategy to attract university-area eateries stems from the belief that these restaurants serve as a “barometer” for young consumers’ culinary trends. By bringing in eateries that have already gained popularity among customers in their early 20s, department stores hope to attract more young customers. Additionally, these university eateries often reflect the unique culture and sentiment of their respective areas, making them more exclusive compared to franchise restaurants.

This approach aligns with department stores’ broader strategy to increase customer dwell time, especially as luxury goods sales growth has slowed. During the pandemic, Hyundai Department Store’s luxury goods sales growth nearly reached 40 percent year-on-year, but it has since fallen to single digits. In contrast, food and beverage sales have outperformed, with a growth rate of 13 percent last year, compared to 5.8 percent for luxury goods.

The industry also anticipates a positive impact on related purchases by attracting popular eateries. The related purchase rate among Hyundai Department Store’s food customers has steadily increased over the past three years, rising from 61.7 percent in 2020 to 65.2 percent last year. This metric reflects the proportion of customers who purchase other types of goods after buying food products.

Department stores plan to continue discovering and introducing popular university eateries from areas such as Daehangno, Hongdae, and Sinchon. Lotte Department Store, for example, is set to introduce Lee Seok Deok Handmade Pasta from Ewha Womans University to its Jeonju branch later this month.