Restaurant owners and catering companies in Daegu's Suseong-gu district are struggling to survive as the prices of staple food items surge [1].

This price volatility threatens the viability of local food services, as businesses find themselves unable to maintain profit margins despite consistent sales. The crisis highlights how geopolitical instability can rapidly translate into local economic distress for small-scale entrepreneurs.

The cost of essential ingredients, including rice and beef, has risen sharply. Specifically, the price of first-grade beef tenderloin is 14% higher than last year [1], while first-grade beef sirloin has increased by 18% year-on-year [1].

Business owners said the current economic environment makes it nearly impossible to sustain operations. One restaurant owner in the Suseong-gu district said, "There is nothing left even after selling."

Catering services are facing similar pressures. Kim Bo-ram, an employee at a catering company, said it is difficult to maintain menu quality and standards within limited cost constraints because the prices of not only manufactured goods, but also vegetables, have risen too much [2].

The surge in costs is attributed to the ripple effects of the Iran war. These conflicts have disrupted global commodity markets, pushing up the cost of agricultural and livestock products worldwide [1].

Heo Seong-jun, a reporter for YTN, said the aftermath of the Iran war is affecting everything from the industrial sector to the food citizens eat [2].

“"There is nothing left even after selling."”

The situation in Daegu demonstrates the fragility of the local hospitality sector when faced with global supply chain shocks. Because these businesses operate on thin margins, they cannot easily absorb the costs of geopolitical conflicts, forcing a choice between raising menu prices for consumers or operating at a loss.