Desperate restaurant owners turn to robots, day laborers amid worker shortage

Despite various hiring incentives, small business owners say job seekers aren’t showing up. As of the second half of last year, the food and beverage service industry reported a labor shortage of 49,312 people, according to the Labor Ministry.

A street in Jongno District, central Seoul, full of restaurants [YONHAP]

For nearly a year, Shin, 65, who runs seolleongtang (ox bone broth and meat soup) and heukdwaeji (black pork) restaurants in central Seoul, has been trying to hire a floor server. During busy hours, his wife steps in to help.

“I’ve offered a 1 million won ($725.80) referral fee to job agencies, but no one’s contacted me,” he said. “Even finding a part-timer is tough, so I just call in day laborers when I can.”

Despite various hiring incentives, small business owners say job seekers aren’t showing up.

As of the second half of last year, the food and beverage service industry reported a labor shortage of 49,312 people, according to the Ministry of Employment and Labor on Wednesday. The shortage rate was 4.4 percent, higher than the all-industry average of 2.8 percent.

Faced with this reality, many restaurants and bars now offer wages above the minimum. In a government survey of businesses with more than one worker, 61.8 percent said they had increased hiring costs and diversified recruitment efforts. Another 32.7 percent said they improved working conditions, such as by raising wages. Respondents were allowed to give multiple responses.

According to AlbaMon, Korea’s major part-time job platform, some restaurants have advertised monthly salaries of over 3 million won — more than 1 million won above the monthly equivalent of the 2024 minimum wage. One samgyetang (ginseng chicken soup) restaurant in Seoul offered 3.8 million won for a floor staffer working 12-hour shifts, five days a week, including break time.

Business owners are also offering more generous perks than before: long-term retention bonuses, employee awards, paid leave for family events and free meals.

Still, they say it’s not working. “Young job seekers prefer work that allows them personal time or helps their career,” said Kim Sang-bong, a professor of economics at Hansung University. “That’s why there’s a mismatch between jobs and job seekers.”

Some owners are turning to robots. One naengmyeon (cold buckweheat noodles) restaurant owner in Pyeongchang, Gangwon, said, “It’s even harder to hire people in rural areas, so we’ve been using a serving robot with support from a telecom company for two years.”

Foreign labor policy draws tepid response The government’s proposed solution is to bring in more foreign workers. Last year, it opened the door for restaurants to hire E-9 visa holders — foreign nationals with non-professional work visas — as kitchen assistants. As of May 15, those roles now include floor service as well.

As of the end of April, 180 foreign workers had taken restaurant jobs under this new policy. But business owners remain skeptical.

The requirements are steep. Restaurants must be in business for at least five years and hire foreign staff as full-time employees. But according to the National Tax Service, only 53.8 percent of general restaurants survive beyond three years.

“It’s unrealistic,” said Cha Nam-soo, policy director at the Korea Federation of Micro Enterprises. “These small businesses need flexibility, but they’re forced to hire full-time, provide housing and assign only one type of task per worker — whether it’s cleaning or serving.”

Cha added that the system should be revised to allow employers and employees to negotiate tasks more freely, while still protecting basic labor rights.

BY HWANG SU-YEON [yim.seunghye@joongang.co.kr]