The National Tax Service has released new data revealing a sobering trend for aspiring restaurant owners in South Korea as fewer than half of newly opened eateries survive beyond three years, and only about four in ten remain open after five years.

Analyzing data from 2019 to 2023, the agency examined the survival rates of businesses in the country’s top 100 lifestyle-related industries, focusing in part on food and beverage establishments.

The findings highlight the high-risk nature of opening a restaurant, particularly in fast food categories like chicken, pizza, and snack bars.

As of 2023, the three-year survival rate for fast food restaurants, including popular chicken and pizza chains, stood at just 46.8%.

This means that fewer than half of the businesses that launched in 2020 were still operating three years later.

Snack bars fared even worse, with a three-year survival rate of 46.6% and a five-year rate dropping to well below 40%.

One-year survival for restaurants also showed signs of fragility. While more than 77% of all lifestyle businesses stayed open through their first year, food businesses, especially small eateries and snack stalls, had significantly lower short-term success compared to industries like beauty salons and guesthouses.

Despite the cultural popularity of food entrepreneurship in Korea, the data highlights how quickly new ventures can struggle, especially in an era of rising costs, changing consumer habits, and strong franchise competition.