The combined share of food and labor costs in South Korean general restaurants’ revenue reached 71.6% in 2024, up from 58.8% in 2015 and above 70% for the first time since the survey began. The findings came from the Foodservice Business Management Survey Report, published annually since 2016 by South Korea’s Ministry of Agriculture, Food and Rural Affairs and the Korea Rural Economic Institute (KREI), with the latest report released on the 14th. These prime costs are generally considered manageable at about 60% of sales; above 65%, operators struggle to cover rent, utilities, card-processing fees, marketing, taxes and financing charges. Average ingredient costs rose to 103.77 million won in 2024 from 58.73 million won in 2015, while labor costs climbed to 78.98 million won from 28.73 million won. Average revenue increased more slowly, reaching 255.26 million won from 148.83 million won. The operating profit margin fell to 8.7% in 2024 from 25.4% in 2015. Industry officials attributed the pressure to higher ingredient prices, rising wages and intense competition that limits operators’ ability to raise menu prices. Proposed responses include stronger entry requirements, startup education, improved food-ingredient distribution, joint purchasing and labor-cost standards better suited to restaurants.