[Year-end trend] Year-end party, luxury cake flex VS mini cake cost-effectiveness

 Who would buy a ‘300,000 won cake’?… ‘Sold out’, a rumor that makes no sense

One side is flex, the other side is cost-effective… Christmas cakes are also ‘polarizing’

*Source_Yonhap News

Christmas cakes, which increase in demand at the end of the year, also follow the ‘polarized consumption’ trend. As interest rates rise and real spending power decreases, many people are looking for cost-effective cakes, but on the other hand, hotel cakes, called 'small luxury', are also popular. Most hotel cakes have increased prices compared to last year due to increased raw materials. Even though it is sold in limited quantities through advance reservation, it still enjoys high popularity.
  An official in the hotel industry said, “Christmas cake planning begins in September, before the leaves begin to fall,” and “The more extravagant the design, including the cost of raw materials and labor costs, the more expensive the cake is bound to be.”
Another hotel industry official said, “We are still receiving a lot of reservation inquiries,” and added, “It may end early.”
On the other hand, there is also a move to target cost-effective consumers who want to feel like Christmas at an affordable price. Shinsegae Food sells ‘Bbangppangdeok Mini Whipped Cream Cake’ for 9,980 won at the bakery store in E-Mart. The ‘Molcan Molcan Chiffon Cake’ with white chocolate and nut toppings on chiffon was also released for 9,980 won. An official from Shinsegae Food explained, “As the burden on households increases, the number of frugal consumers who want to spend rationally is expected to increase.”
Convenience stores are offering cakes for one or two people that can be enjoyed without burden. 7-Eleven collaborates with Turtle Hip, famous for custom cakes in Hongdae, to present mini cakes for 1 to 2 people. GS25 previously released four types of mini cakes, including Dore Dore Strawberry Santa Cake, Dore Dore Milk Cloud Cake, Dolce Chocolate Long Cake, and Blueberry Long Cake, priced in the 5,000 to 6,000 won range.

*Source_Shilla Seoul Christmas cake ‘Wishing Lease’ ‘White Holiday’, Lotte Hotel Seoul & World’s Bear Chocolat House Cake, Grand Hyatt Jeju ‘Deli’ Christmas cake and dessert, Chosun Palace Seoul Gangnam’s ‘Luxury Collection Christmas Cake’. (Provided by each company)

Luxury cake sells 4,600 cakes in one month... Luxury cake becomes 'the flower of home parties'

*Source: Maeil Business Newspaper

This is the increase in sales of two types of Christmas cakes at Shilla Seoul Hotel over the three days from December 23rd to 25th last year. It increased nearly three times compared to the same period in 2019. This is because Christmas and year-end gatherings were replaced by home parties due to the COVID-19 incident, and they attracted attention as a ‘hot item’ on social media. A Shilla Hotel official said, “The Christmas season is the time of year when cakes are sold the most. “Last year, the maximum amount that the hotel could produce was ‘sold out,’ and this year is expected to be similar,” he said.

Ahead of the year-end and New Year holidays, competition for ‘luxury cakes’ priced at 100,000 won is fierce in the hotel industry. While dining out is restricted due to the strengthening of social distancing, there is an expectation that cake, the ‘flower of home parties’, will be the grand finale of the Christmas table. In this situation, competition for luxury cakes among luxury hotels targeting home parties is heating up.

Lotte Hotel is selling a variety of Christmas cakes at Signiel Seoul·Busan and Lotte Hotel Seoul·World, Jeju, and Busan. Signiel Seoul's deli shop Pastry Salon introduced a red berry cream cheese cake (70,000 won) filled with red berry compote and a Mont Blanc (70,000 won) that lets you feel the rich flavor of chestnuts. Signiel Busan Pastry Salon presented the ‘Christmas Tree (KRW 100,000)’, a cake decorated with vanilla cheese mousse and pistachio dacquoise, and the ‘Buche de Noel (KRW 95,000)’, a wooden firewood-shaped cake made from tiramisu. In addition, we also prepared a Christmas Pine Tree (78,000 won) using brownies to represent acorns and three types of mini cakes. A Lotte Hotel official said, “Despite the price being higher than commercial cakes, sales are increasing as the satisfying taste spreads through word of mouth. A whopping 4,600 units of premium strawberry cake were sold in December last year alone. “This year, the number of reservations so far has already exceeded the sales volume of the previous year, so we expect to break our record again.”

At Grand Deli, located on the first floor of Grand InterContinental Seoul Parnas, three pastry chefs prepared 11 types of signature cakes. Among them, ‘Chocolate Mugwort Cake’, ‘Pine Tree Cake’, and ‘Igloo Cake’ are three recommended cakes for the hotel. Prices start from 68,000 won, and Andaz Seoul Gangnam, a Hyatt affiliate, offers four types of Christmas cakes and bakery items. You can also taste signature cakes such as hazelnut chocolate mousse and Charlotte aux Preise, as well as traditional Christmas breads such as gingerbread house, stollen, and panettone. The price ranges from 55,000 to 90,000 won, and advance reservation 2 days in advance is required.

‘300,000 won luxury cake’ that cannot be sold because it is not available... What was it made of?

*Source_ Seoul Economic Daily

Demand for expensive cakes launched by luxury hotels for Christmas and the end of the year is skyrocketing, leading to reservations being suspended. According to the industry on the 12th, Shilla Hotel and Chosun Hotel & Resort introduced their signature cakes at a 20% increase in price compared to last year. This is interpreted as a result of reflecting labor costs along with the increase in raw material prices such as flour and eggs. The hotel's position is that since it is made by hand by a professional pastry chef, the quantity itself is bound to be small.

The most expensive luxury hotel Christmas cake this year is Seoul Shilla Hotel’s ‘The Taste of Luxury’, priced at 300,000 won. This cake contains 40g of winter truffles, which have the best aroma and taste among black truffles. Here, Chateau d’Yquem, a synonym for French dessert wine called ‘drinking gold,’ was used as the liqueur. Liqueur is a sweet liquid alcohol that is used in confectionery and baking to improve the taste and flavor of products.

Despite the high price, this cake was already sold out in advance on the 6th until the 10th. The hotel does not disclose the number of cakes it can sell per day, but it is known that it usually only produces a limited quantity of 30 to 50 cakes.

Cost-effectiveness

A chance to play good sports Toto! Companies that have gained the most popularity and preference are called major sites. Let’s look at the rankings of major playgrounds.