If you love Korean food, you’ve probably considered the idea of setting up a Korean takeout business. Interest in Korean culture is continuing to surge globally, and more people than ever want to try the country’s food. It offers a unique taste which is quite different from more conventional East Asian options like Thai or Chinese.
Of course, take-out and delivery success hinges on multiple factors, including:
- Reliable packaging
- Authentic flavors
- Intelligent operations
Here’s how to make it work for you.
Get your core menu right
The most important thing to do is get your core menu right. If you provide customers with something which is delicious and exciting, then they’ll be willing to overcome almost any hurdle to get their hands on your food. Many menus are based around rice bowls, spicy pork, Korean Fried Chicken, and Bibimbap bowls. You could also experiment with kimchi, sundubu, and kimbap rolls.
If you’re operating a takeout business, don’t rely on recipes that require table-side grilling or preparation. Focus on dishes that are going to work even if you deliver them in plastic cartons.
Focus on high-volume prep stations
When it comes to your operations, you’ll want to focus on becoming a sort of cloud kitchen with high volume prep stations. This is often the most efficient setup and allows you to partner with platforms like Uber Eats or DoorDash, earning commission from each sale. Many successful Korean takeouts work this way instead of trying to build their own distribution network. They simply plug into ones that are already available. The real value in the business is the cooking and the efficiency, the margins that are created by efficient food preparation.
In general, you’ll want to skip dine-in spaces. If you can avoid a delivery kiosk where customers physically collect food, that’s also useful. However, it could be an expectation in your area, so you might not want to eliminate this completely.
Source authentic ingredients
It sounds obvious but you might also want to source authentic ingredients. Importing real gochujang, sesame oil, and fresh perilla leaves from Korea will give you the most authentic taste. People will actually believe that they have travelled halfway around the world to experience the food even if you’re delivering it directly to their doors locally.
When you buy staples, buy them in bulk. When you buy new ingredients, test them in small batches. When you buy fermented items, keep them in the refrigerator and check sell by dates regularly.
If you can leave Korean imported stickers on packaging or containers, then do so. This adds an extra layer of authenticity to your offering.
Price smartly with margins
The most critical part of the cash flow elements of your business is to price smartly and ensure that you have sufficient margins. If you don’t have high margins, it can make it challenging to create a sustainable career and take out a business.
The best approach is to price your mains competitively, usually between $12 and $18 depending on your location. Then you’ll want to upsell extras at a higher margin like fried eggs, kimchi, cheese drizzles, drink pairings, and other delicacies. If you can aim for a 30-35% margin on each food order, then you should be able to make money. Don’t forget that wages are not included in this calculation, so if you’re not doing high volume, the impact of wages will be greater.
Allow customers to pay the way they want
Allowing customers to pay the way they want and letting them use alternative payment methods is also a good idea when setting up a Korean take-out. You want to give them as many options as possible.
The easiest way is to simply take payments through integrated apps like DoorDash or Deliveroo. If you can’t do that, set up an integration on your website using a third-party provider where they can simply insert their card details and then reorder whenever they want. Cash is also an option, but perhaps isn’t as convenient, especially when it comes to takeout. It’s often difficult for drivers to accept cash on the door, so you want electronic payments in advance where possible.
Prioritize speed, convenience, and consistency in your operations
It should go without saying that you also want to prioritize speed, convenience, and consistency in your operations. Ideally, you want fast preparation and putting together deliveries within 8 to 12 minutes of the ticket arriving. Most customers will accept variable delivery times, but they’ll expect a baseline level of speed. Don’t leave them waiting half an hour just for food to leave your establishment.
If you can standardize recipes with photos and charts, that’s even easier. This means that your prep stations can work efficiently, and you can swap in and out workers when required, even if somebody isn’t available. Once you become consistent, you’ll build loyalty. Customers will keep coming back week after week because they know that they’re going to get the goods from you.
Use reviews
In the process of setting up your Korean takeout, you’ll also want to leverage reviews. The more of these that you can acquire on platforms like Google, the more likely people are to choose you for food. If you can build your own website and app for direct orders, then do so. This helps you avoid the 20-30% fees charged by most platforms. Additionally, you might want to include loyalty rewards for customers who consistently use your website platforms. This improves your margin and helps you perform better as a business.
Market it like it’s K-pop
Finally, it’s a good idea to market your Korean takeout like it’s K-pop. Tapping into the culture of the country and making it all about drama and influences can increase the buzz around your establishment and get more people to try you out. If you can build hype around seasonal life, that’s even better. For example, you might promote your spicy ramen bowls during the winter when it’s cold.
So there you have it: how to set up your Korean takeout business to be a roaring success.