A sign in a restaurant window advertises "tteokbokki" (steamed rice cake stir-fried in spicy sauce) and gimbap in Seoul, Sept. 11. Yonhap

Gimbap shops, which have long attracted consumers with their affordable prices, are losing ground in the country's dine-in market due to rising costs and the popularity of major convenience store chains, according to market experts, Monday.

The impact has hit both mom-and-pop stores and franchise restaurants, causing them to see lower profits or even close down. As to the costs, the reasons behind their hikes are multi-pronged.

The rising prices of ingredients that go into gimbap — steamed rice and various ingredients wrapped in dry seaweed — is a key reason the businesses are increasingly becoming cash-strapped. According to Korea Agro-Fisheries & Food Trade Corp., the prices have mostly gone up from the previous year.

A pack of 10 dry seaweeds jumped to 1,360 won ($1.04) this year from 990 won, 1 kilogram of carrots to 7,580 won from 6,250 won, 10 cucumbers to 14,600 won from 13,100 won and 100 grams of spinach to 3,790 won from 2,360 won. Prices of burdocks imported from China have also spiked to the unprecedented level of 5,000 won per kilogram, according to the businesses.

Delivery costs are another factor.

The country's major online delivery ordering platform operators have all raised commission fees charged to restaurants using the platforms to 9.8 percent per order from 6.8 percent. Baedal Minjok, the biggest player in the delivery platform market, followed its rivals, Coupang Eats and Yogiyo, by increasing its fee rate in August.

Because of the increasing pressure, more gimbap businesses are forcing consumers to spend a minimum of 20,000 won to 30,000 won for delivery orders, increasing inconvenience for those wishing to use the service.

The overall prices of gimbap have risen on average to 3,485 won per roll, an 8.4 percent year-on-year increase, according to the Korea Consumer Agency.

The recent inflation of prices of ingredients has heaped costs on gimbap restaurants in Korea. Korea Times file

Besides the price, gimbap shops are catching flak from diverse angles.

Convenience store chains, another retail sector drawing consumers with cheap prices for a variety of meals and desserts, have been introducing affordable gimbap for as low as 1,000 won. Dropping consumption of rice nationwide — 56.4 kilograms per person last year, a record low — also reflects that fewer people are spending money on gimbap.

The country's gimbap market is apparently shrinking. According to the Fair Trade Commission, Gimbap Heaven, the biggest franchise company here, registered 230 million won in sales last year, a rise from the previous year's 167 million won, but its operating profit fell by a whopping 72.2 percent to 4.4 million won from 15.8 million won.

Yunsem Gimbap, another franchise, also saw its earnings drop to 75 million won from 117 million during the same period. Other smaller franchises saw their operating profits fall — one by 47.4 percent — or continued their money-losing operations for years.

The stiffening gimbap market is leading to a decline in the number of shops. According to Statistics Korea, their number in 2022 counted 46,639, a 4.6 percent decrease from the previous year of 48,898. Gimbap Heaven and Lee Gimbap, another franchise, all saw their store numbers sink last year from the previous year.