The number of coffee shops and small eateries in South Korea declined for the first time since 2018, as economic headwinds and lackluster domestic demand weigh on self-employed businesses, Yonhap News reported Monday, citing data compiled by the National Tax Service.

Cafes fell by 743 on-year to 95,337 in the first quarter, marking the sector's first-ever decline. Fast food outlets, Korean and Chinese eateries, and convenience stores also witnessed declines, the report said.

Market saturation, high delivery platform fees, and declining consumer spending were key factors behind the decline, it said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)