I. Market Overview

Banchan stores (specialized side dish retail and delivery) are expanding alongside the growth of HMR (home meal replacement) products . HMR production and sales increased approximately 5.6-fold and 8.4-fold, respectively, from 2008 to 2018 (data compiled by the Ministry of Food and Drug Safety), with the growing proportion of single-person households driving demand. (Ministry of Food and Drug Safety )


Convenience food spending is expected to remain stable (average monthly consumption of 95,500 won) and loyalty to frozen and ready-to-eat categories will increase between 2024 and 2025. Food and Restaurant Economy


The industry is structured around a triangular structure: branding (franchising), small- and medium-sized manufacturing/OEM, and platform distribution . Representative franchises include Orecipe and Jinichanbang, each of which has publicly disclosed its operational characteristics, including HACCP-based production and semi-processed supply, a nationwide franchise network, and a simultaneous online and offline presence.

 

II. Major Supply Chain Structure

division

Key items

characteristic

raw materialsVegetables, meat, seafood, seasonings, sauces, and fillingsFresh/processed mix, influenced by season, exchange rate, and grain price
equipment/devicesCooking, heating, rapid cooling, vacuum packaging, showcaseStandardization of hygiene and temperature management (linked to HACCP)
Packaging/LogisticsVacuum/refrigerated packaging, biodegradable/paper packagingDemand for gifts, courier services, and express delivery services is increasing, accelerating the shift to ESG.
IT/OperationsPOS/ERP, delivery integration, expiration date/loss managementReservation and peak (holiday/weekend) demand forecasting are important.
Ⅲ. Supplier Network (Example Snapshot)

field

Representative/Example

memo

Franchise headquartersOrecipi (Dodulsam, HACCP, factory-based), Jinichanbang (national franchise network, content operation)Improving brand, standard recipe, and logistics systems. ( orecipe.co.kr )
OEM/Food ingredientsFillings, sauces, premixes, pickles, and semi-processed vegetablesExpanding the proportion of semi-processed and semi-finished products (for convenience of store owners). ( Baby News )
PackagingPP·PLA·paper packaging, cooler kitIt is important to develop gift/gratuity/delivery packages.
distributionMixed refrigerated and frozen + last mileFlexible logistics is needed during peak times such as holidays and the college entrance exam.
Ⅳ. Demand and Consumer Trends

Trend

detail

Single-person households and dual-income households are becoming more commonIncreased spending and experience with convenience foods (satisfaction rating 3.57/5), with the primary reasons for purchase being convenience, economy, and time savings . ( Food and Restaurant Economy )
The duality of 'home-cooked meals' and 'gifts/gratitude'Simultaneous strategy for everyday meals (side dishes, soups) and events (holidays, condolence events)
OmnichannelSimultaneous operation of stores, company malls, Market Kurly, and delivery apps (sensitive to review quality and packaging condition)
Health/PremiumEmphasize the story of low-salt, additive-free, low-sugar products, local ingredients, and "Korean wheat and soybeans."
V. Technology and Operational Innovation

AI demand forecasting/loss management : Optimize production volume based on day of the week, weather, calendar (holidays/exams), and event data → Reduce waste rates.

Semi-processed/Standardized Recipes : Supplying semi-finished products from headquarters to franchisees reduces cooking time and skill dependence, and reduces quality variance. Baby News

Packaging innovation : Vacuum, heat-resistant, and oil-resistant packaging, cooler kits, gift packages, and eco-friendly materials improve review and repurchase rates.

HACCP and Temperature Tracking : Combined with cold chain and temperature and humidity logging, reducing claim risk.

VI. Investment and Profit Structure (Franchisee Perspective and Range)

item

Range/Points

Initial costs90 million to 160 million won (high proportion of equipment, showcases, and sanitary facilities)
Sales/ProfitLunch, Weekend, and Holiday Peaks, Gift Set Proportion (Quarterly Variation)
Cost structureFresh food ingredients, dairy products, packaging materials + delivery/quick delivery costs
riskFreshness/damage/expiration date sensitivity → loss/return management costs

(Varies depending on brand conditions and location. For detailed startup specifications, please check the franchise information disclosure and brand public data.) Food and Restaurant Economy

VII. ESG and Eco-Friendly Status

Attempts to reduce waste and costs simultaneously by switching to packaging materials (PLA and paper) and simplifying packaging .

Transparency of country of origin and supply chain (rice, dairy products, seasonings), strengthening of nutrition and allergy labeling .

Expanding experiments with eco-friendly packaging, refillable packaging, and reusable containers (increasing brand-regional policy collaborations).
(Based on brand disclosures and industry trends) orecipe.co.kr

Ⅷ. Risk Factors and Response Strategies

danger

influence

react

Raw materials and exchange ratesRising costs and pressure on marginsGroup purchases, long-term contracts, and alternative recipes
Fresh/BrokenCS/Return CostPackaging Improvement, Cold Chain, and Pickup Recommendations
seasonal demandOff-season fixed cost burdenSubscription/Regular Delivery/Corporate Gift/B2B Meal Linkage
Dependence on manpower/skillsQuality deviationSemi-finished supply, standard recipe, training/LMS
Ⅸ. AI Prediction Loop (2025-2026)

characteristic

Directionality

Basis/Notes

domestic demandgentle +Convenience food spending remains stagnant, and single-person households persist. ( Food and Restaurant Economy )
Semi-processed introduction raterisingNeed for operational convenience and quality standardization. ( Baby News )
ESG packaging conversion raterisingConsumption and policy pressures operate simultaneously
Omnichannel sales ratiorisingExpansion of simultaneous operation of delivery/own mall/market
Ⅹ. Conclusion and Implications

Key growth levers are semi-processing and standardization, packaging quality, and AI demand forecasting (Loss and claims down, repurchases up).

Brand Positioning : Stable two-track operation of daily 'home-cooked meal replacement' and holiday/gift 'gift type' .

Supplier Opportunities : Increasing B2B demand for ESG packaging, vacuum and insulated packages, low-sodium and additive-free sauces, and semi-processed kits .

Policy/Quality : Trust Index management prioritizing HACCP, labeling, and hygiene education is a long-term competitive indicator.

One-line summary:
The side dish franchise is an industry that benefits from the growth of HMR , and its competitiveness in 2025-26 will be divided into semi-processing, packaging, demand forecasting, and ESG .