South Korean shops turn to robots, self-service to escape labor woes

SEOUL - Unstaffed coffee shops, ramen eateries and flower stores are rapidly spreading across South Korea as business owners increasingly turn to robots and self-service systems to offset rising labor costs, relying on a social environment where customers are generally trusted to follow payment rules.

Industry estimates suggest that such unmanned stores, many of which operate 24 hours a day, reached about 9,000 nationwide by the end of 2024, according to the National Fire Agency. Payment provider Samsung Card said the number likely quadrupled by 2025 compared with 2020, reflecting fast adoption across retail sectors.

“The population of baristas in their early twenties is drastically declining,” said Kim Dong-jin, chief executive of Lounge X, where a robotic arm named “Baris” prepares drinks such as Americanos and matcha lattes ordered through self-service kiosks.

Lounge X currently operates eight unmanned 24-hour coffee shops across South Korea, most of them in Seoul. In some hybrid branches, human staff still assist in preparing beverages.

Unstaffed retail spaces are not entirely new globally, with cashier-free grocery stores already operating in countries such as the United Kingdom and the United States. However, South Korea has expanded the concept more broadly, extending it to businesses such as pet supply shops and clothing stores.

Operators cite difficulty in hiring suitable staff and increasing wage pressures as key reasons for adopting the model. They also point to relatively low levels of petty crime and strong public compliance with rules in South Korea as factors that make unmanned stores viable.

South Korea’s demographic challenges are also accelerating the trend. The country is facing a rapidly aging population and one of the world’s lowest birth rates, leading to a tightening labor market. The government projects that the population of 51.8 million could fall by nearly one-third to 36.2 million by 2072.

Kim, a veteran of the coffee industry for more than 20 years who joined XYZ Robotics seven years ago, said it has become increasingly difficult to hire experienced baristas.

The company initially experimented with a hybrid model, employing one or two baristas per store. It now operates fully unmanned outlets that require only a brief daily visit from a worker to restock supplies such as coffee beans and baked goods, as well as to clean the premises.

While sales in staffed cafés remain higher, Kim said labor savings significantly improve profitability. He said unmanned stores can achieve profit margins of more than 40%, compared with around 10% to 15% in traditional coffee shops.

Despite the absence of staff, operators say incidents of theft remain rare. “Although there has been an incident of theft, the vast majority of customers use the store conscientiously,” said Hyun Sun-Joo, who manages an unmanned ramen restaurant she took over last year to support her household income after years as a stay-at-home mother.

The self-service format allows customers to select instant noodles from wall shelves, prepare them with hot water, and add toppings of their choice. Hyun said the setup has also given her greater flexibility in balancing childcare and household responsibilities without managing employees.

Customers have generally welcomed the convenience. One student, Kim Hee-yeon, said she visits an unmanned ramen shop at least once a week because the operating hours fit her irregular schedule.

“I like to eat quietly while looking at my phone, so I feel more comfortable when there isn’t anyone around,” she said.

She added that while technical issues can occasionally occur, they are usually resolved quickly. “It is slightly inconvenient that there isn’t someone right next to me when I have a problem,” she said. “But last time, they fixed it within about three minutes, so it wasn’t a major inconvenience.” -Reporting by Brenda Goh and Jungmin Ryu; Additional reporting by Minwoo Park; Editing by Clarence Fernandez/Reuters