Hotel kimchi is moving into convenience stores. According to the retail industry on the 20th, Seven-Eleven (Korea Seven), the convenience store affiliate of Lotte Group, plans to begin convenience store sales of "Lotte Hotel napa cabbage kimchi," which had been sold by Hotel Lotte, within this month. The Lotte Hotel napa cabbage kimchi sold at convenience stores will be offered in a small 60-gram portion. It is an appropriate amount for one meal.
Until now, Lotte Hotel napa cabbage kimchi had been sold only on the Hotel Lotte website e-shop, at department stores, at some Lotte Mart locations, and on Lotte Homeshopping. The retail industry is paying attention to sales volumes of hotel kimchi in the convenience store channel. That is because hotel kimchi has been distributed at a relatively high price point, as it uses only domestically grown napa cabbage and red pepper powder to make the kimchi and applies a recipe embodying the culinary philosophy of Mugunghwa, the Korean restaurant at Hotel Lotte.
A retail industry official said, "From the consumer's standpoint, there is the advantage of being able to taste premium napa cabbage kimchi at a reasonable price," adding, "When eating a meal at a convenience store, the key will be whether the criteria for choosing kimchi are 'a small happiness for me' or 'cost-effectiveness (value for money).'"
This is the first time hotel kimchi is being sold through convenience stores. The players in the premium hotel kimchi market include Walkerhill, Josun Hotel, and Hotel Lotte. Walkerhill is the originator, having begun selling kimchi in 1989. Josun Hotel began selling kimchi in 2004 and significantly expanded the business during the COVID-19 period. Hotel Lotte entered the kimchi market relatively late, in 2023.
Hotels have ventured into the kimchi business because the hotel industry is dependent on external variables. For example, when there is a BTS concert held on the 21st in Gwanghwamun, Seoul, hotel room occupancy rates reach nearly 100%, but when issues like COVID-19 arise, the number of foreign tourists plunges and hotels cannot avoid losses.
A hotel industry official said, "Hotels are seeking to diversify revenue with kimchi as well as air fresheners, shampoo, and body lotion," adding, "There is the advantage of enjoying the lock-in effect (the effect where consumers continue to use existing products or services)."