The government is moving to foster Foodtech (a portmanteau of food and technology) as a next-generation growth industry. Adoption is spreading, centered on major franchises. Some say polarization between large corporations and small and mid-sized companies is a concern due to entry barriers.
According to related industries on the 8th, the Ministry of Agriculture, Food and Rural Affairs will fully operate a Foodtech business operator reporting system to systematically manage the status of Foodtech corporations and to clarify the targets of policy support such as research and development (R&D), robot distribution, exports, and workforce training. This is in accordance with the Foodtech Industry Promotion Act, which took effect on Dec. 21 last year. Reported businesses will be given priority for various policy supports promoted by the government going forward.
Buoyed by policy support, the restaurant franchise industry is treating the introduction of Foodtech, such as cooking and serving robots, as a necessity rather than a choice to address labor shortages, rising labor costs, and high inflation. In particular, cooking automation is spreading in chicken, pizza, and fast-food segments. bhc has expanded the number of stores introducing its frying robot "Twibot" to 40 nationwide, and Kyochon Chicken has applied dough process automation equipment to its franchisees. The burger franchise Lotteria is also operating patty and frying cooking robots mainly at company-owned stores to shorten cooking time and improve labor efficiency.
Cafes and family restaurants are also expanding the adoption of Foodtech such as barista robots and noodle-cooking robots. Angel-in-us has deployed barista robots at airport stores, and CJ Foodville has introduced cooking and serving robots at VIPS and Cheiljemyunso to secure standardized quality and operational efficiency.
Meanwhile, small and mid-sized franchises and small business owners say that while they feel the need to introduce Foodtech, there are limits to actual implementation. They say the price of robot equipment, maintenance and repair expense, and space constraints still act as entry barriers.
Although there are government support programs for smart stores and robot distribution, some say the paperwork and requirements are demanding and the scope of support is limited, so the impact is not substantial. Large franchise companies can respond more easily, but the smaller the business, the harder it is to access information in the first place.
A representative example is the Smart Store/Smart Workshop Technology Distribution Project being implemented by the Ministry of SMEs and Startups (MSS) and the Small Enterprise and Market Service. When a small business owner introduces smart technologies such as ▲ kiosks ▲ serving robots ▲ robotic automation systems ▲ 3D printing systems at a business site, part of the required expense is supported with national funds. On the self-employed community "It Hurts to Be a Boss," numerous posts were uploaded from 2024 through last year saying "the smart store support procedure is complicated" and "I struggled because of the paperwork." Promotional posts by service companies that handle the paperwork on behalf of applicants also stood out. Some self-employed people said they were not selected because competition was fierce due to the limited scale of support.
A food industry official said, "Small stores that find it difficult to invest in automation have trouble reducing reliance on labor, which adds to the expense burden and could ultimately lose out in price competitiveness," and added, "It is necessary to actively utilize government support measures, and the government needs to do more to guide this."
Professor Lee Jong-woo of Ajou University's Department of Business Administration said, "With labor costs having risen significantly, the development of Foodtech will greatly help the industry's growth," adding, "However, to invest in technology, a brand needs to be large in scale, which could lead to polarization in the restaurant industry. The government should consider ways for small businesses to also benefit."