Korea's self-service pubs: Cheap, simple, hugely popular

In the Kunguk University neighborhood of Seoul -- an area peppered with stationery shops, “hangover stew" restaurants and “DVD rooms” where college students go to make out in privacy -- a D.I.Y. beer pub has become one of the most popular venues on the block since it opened last March.

At Beer Barket, the set-up is straightforward.

Customers grab a table, which comes with a basket that they can fill with ice and use to shop from a selection of over 100 brews from a row of refrigerators. Prices are posted on each fridge. At the end of their night, when they get up to leave, an employee gathers the bottles and brings them to the counter, where they are tallied up for the bill. 

These self-service watering holes -- often referred to as “beer changgo” or “beer warehouses” for their stark look and rows of refrigerators -- are cropping up all over the country, attracting a young clientele with their wallet-friendly and varied selection of domestic and imported beers.

Student-friendly and wallet-friendly.

The tastes behind the trend

Beer consumption in Korea has changed over the past decade. 

While imported beers were a novelty as late as the early 2000s, as of 2005 consumers have become beer-savvy enough to narrow their focus to their own favorite imported beers of choice, says INTO Franchise Systems CEO Yi Hyo-bhok, 43, whose company runs the Beer Barket franchise, and also opened the first WABAR, a major pub franchise known for its vast selection of international beer.

More on CNNGo: 20 delicious Korean drinks 

According to Yi, given the increasingly widening tastes of the Korean beer market, it seems only natural that a bar offering a wide selection at low prices would catch on quickly: there are currently 30 Beer Barkets nationwide -- including Busan and Daegu in addition to Seoul -- and Yi plans to bring the total up to 100 by the end of 2012.

While the trend of self-service bars can also be seen in Europe, the United States and in China, they usually serve draft beer and do not have nearly as many choices. 

These Korean beer warehouses are not limited to college areas: Apgujeong Beer Warehouse offers the same low prices (ranging from ₩2,500 to ₩10,000 for a bottle), wide range and self-service in one of the most expensive areas of Seoul.

“It’s pressure-free,” says office worker Lee Seul-gi, 27, of not having to order an anju (a meal accompanying alcohol), which is usually required at Korean pubs.

"We like to come here for the dartboard," says Eun-hee Lee, 22, who often patronizes the bar with her girlfriends. "The prices are really cheap, but the interior isn't ugly like a pojangmacha. They have a lot of beers I've never seen before." 

The co-owner Do Jin, 35, says he was prompted to open the D.I.Y. pub after visiting a “beer changgo” with friends in the summer of 2010 and found himself enjoying the casual vibe.

Gongrete is another such venue in an expensive neighborhood. 

Kim Min-seok, 29, initially wanted to open a run-of-the-mill pub until he found out about the self-service pub model and opened Gongrete in Nonhyeon-dong. 

But the real draw for the "beer changgo" owners is the relatively inexpensive business model.

At self-service pubs like Gongrete, customers select their own beers from refrigerators.

“Personnel costs for WABAR clock in at around 15 to 18 percent of total costs while personnel costs for Beer Barket make up around eight to nine percent of total costs," says Yi. 

This translates directly into the beer prices. At WABAR prices run around  ₩7,000 won to  ₩15,000 for bottled beer, in comparison to Beer Barket's prices of ₩2,900 to  ₩9,900.

Kim says Gongrete only need one employee from Sundays through Thursdays, while on Fridays and Saturdays they also call in a part-time employee.

Trend forecasts

But despite the recent popularity, how long will this self-service trend last in Korea, the land of the whiplash turnover rates? 

“With the trend spreading fast, only those establishments with a competitive edge will survive,” says Kim.

Yi, on the other hand, sees longevity in the D.I.Y. pub and predicts the trend will continue for at least five years.

The draw for the consumer is obvious, he says. “Customers can drink quality beer at low prices.”

Apgujeong Beer Warehouse is the darling of officeworkers and students.

Apgujeong Beer Warehouse, 2/F 660-12 Sinsa-dong, Gangnam-gu (강남구 신사동 660-12 2층); 6 p.m.–4:40 a.m.; +82 2 3445 7680

Gongrete, 2/F 183-6 Nonhyeon-dong, Gangnam-gu (강남구 논현동 183-6 2층); 5 p.m.–6 a.m.; +82 2 548 0922

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