From robot cafés to self-service shops: How South Korea is tackling its labour shortage| Watch

A cup of coffee poured by a robotic arm, a bowl of instant ramen prepared without a cashier in sight and a flower shop open through the night with no staff on duty are no longer unusual sights in South Korea. Across the country, businesses are increasingly embracing automation and self-service as labour shortages and rising employment costs reshape the economics of running a shop.

According to Reuters, unstaffed businesses have expanded rapidly in recent years, extending well beyond convenience stores to include cafés, eateries, pet supply outlets and clothing shops. The trend reflects a broader shift in how small businesses are adapting to demographic changes while seeking to improve profitability.

The National Fire Agency estimates there were around 9,000 unstaffed stores nationwide by the end of 2024. Samsung Card has suggested the sector has grown even more rapidly, estimating the number of such businesses in 2025 is roughly four times higher than it was in 2020.

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Labour shortages fuel the shift to automation

Business owners say the move towards automation is being driven as much by necessity as innovation. South Korea's ageing population and persistently low birth rate have reduced the pool of available workers, particularly in customer-facing service roles.

Government projections indicate the country's population of 51.8 million could decline to around 36.2 million by 2072, raising concerns over a long-term labour crunch.

For businesses such as Lounge X, robotics has become a practical response. The company operates eight fully unstaffed cafés, most of them in Seoul, where customers place orders through kiosks before a robotic arm named "Baris" prepares drinks including Americanos and matcha lattes. Four additional locations continue to use human staff.

"The population of baristas in their early twenties is drastically declining," said Kim Dongjin, chief executive of Lounge X.

Kim, who has spent two decades in the coffee industry, said the company initially experimented with a hybrid format combining robotic systems with one or two baristas per store. As confidence in the model grew, operations evolved to require only a brief daily visit by a staff member to replenish coffee beans, bakery items and other supplies while carrying out basic cleaning.

Although traditional cafés still generate stronger sales, Kim said the reduction in staffing costs has transformed profitability. He estimates unstaffed locations achieve profit margins exceeding 40 per cent, compared with roughly 10 to 15 per cent for conventional coffee shops.

Why businesses in South Korea are replacing staff with robots and self-service

Unlike many countries where businesses may hesitate to operate without employees, South Korea's relatively low levels of petty crime have made the model more viable.

Owners say most customers respect the rules, helping minimise losses even when shops remain open 24 hours a day.

That has encouraged entrepreneurs such as Hyun Sun-Joo, who took over an unstaffed ramen restaurant last year after spending years as a full-time homemaker. Customers choose packets of instant noodles from shelves, prepare them using hot water stations and add toppings themselves without staff assistance.

Hyun said the format allows her to balance childcare and household responsibilities without the added challenge of recruiting or managing employees.

While isolated thefts have occurred, she said they have been rare. "Although there has been an incident of theft, the vast majority of customers use the store conscientiously," she said.

Consumers have also embraced the convenience. Student Kim Hee-yeon told Reuters she visits the ramen shop at least once a week because its round-the-clock opening hours suit her unpredictable schedule.

As South Korea continues to grapple with demographic pressures, businesses are increasingly betting that automation, combined with a high level of public trust, will become an enduring part of everyday retail rather than simply a temporary response to labour shortages.