Coffee shops, ramen restaurants, and flower stores without staff are becoming more common across South Korea As businesses depend more on robotics and automated services to address increasing labor expenses, they also rely heavily on the trustworthiness of their customers.
These stores, typically operating around the clock, were projected to reach 9,000 across the country by the end of 2024, according to the National Fire Agency, whereas payment service company Samsung Card mentioned that their count likely increased fourfold by 2025 compared to 2020.
"Increasingly fewer young people aged twenty are becoming baristas," stated Kim Dongjin, CEO of Lounge X, where a robotic arm called 'Baris' dispenses paper cups containing Americano coffee and matcha lattes to fulfill requests made at the location’s kiosks.
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His firm operates eight of these round-the-clock cafes—completely staff-free—throughout South Korea, with the majority located in Seoul, the capital city, though human workers make coffee beverages at an additional four locations.
Cashierless retail outlets are becoming increasingly common worldwide, including grocery stores in nations like the UK and USA. However, this idea has gained more traction in South Korea, where it now includes pet supply shops and fashion boutiques as well.
Store owners mention challenges in hiring appropriate employees and increasing labor expenses as factors behind implementing this approach—especially since levels of minor theft are minimal in South Korea, where patrons typically follow rules.
South Korea faces an increasingly elderly demographic, accompanied by one of the globe's smallest birth rates, resulting in a shortage of workers. Authorities predict that the country's current population of 51.8 million will decrease by nearly one-third to reach 36.2 million by 2072.
Labour shortage
It has grown more challenging to hire experienced baristas, noted Kim, an individual with two decades of experience in the coffee sector who began working for Lounge X's parent company, South Korean XYZ Robotics, seven years back to introduce automated coffee outlets in 2024.
Initially, they experimented with a mixed approach using one or two baristas per store. Currently, each location only needs a single one-hour morning session from a staff member to replenish supplies like coffee beans and baked items, along with performing cleaning tasks.
Although revenue at cafes with staff remains generally higher, according to Kim, the reduction in labor costs increases the profit margin for automated stores to over 40 percent, compared to approximately 10 to 15 percent for traditional locations.
"Even though there have been cases of stealing, most customers utilize the store responsibly," stated Hyun Sun-Joo, who recently assumed control of a staffless ramen restaurant last year to generate additional income following several years as a full-time homemaker.
As stated by Hyun, the self-service model—where customers select their favorite instant noodles from wall displays, then add boiling water and desired toppings—allows her to manage her kids' routines and household tasks without having to oversee employees.
A customer named Kim Hee-yeon, who is a student, mentioned that she visits the place at least once every week because the opening times match her inconsistent meal schedule.
She mentioned that she prefers eating silently while checking her phone, which makes her feel mentally more at ease when alone. She also noted that an issue with the store’s system she experienced before was fixed within a few minutes.
It’s somewhat annoying that they’re not nearby when I face an issue," she remarked. "However, the last time... they arrived and fixed it in roughly three minutes, so I don’t believe it was a significant hassle.
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