Cafe Owners Struggle In South Korea's Oversaturated Coffee Shop Boom – CoffeeTalk

South Korea’s coffee shop landscape has witnessed explosive growth in recent years, becoming a phenomenon characterized by an overwhelming number of cafes competing for consumer attention. With over 80,000 coffee shops in the country for a population of 51 million, the density in Seoul rivals that of Paris, making it difficult for individual establishments to thrive. The coffee culture, which has expanded since the late 19th century and adopted instant coffee post-Korean War, is now deeply embedded in social life, offering people places to gather, relax, and escape the pressures of a challenging job market.

The allure of opening a cafe has attracted many aspiring entrepreneurs who often see it as a low-barrier entry point to self-employment. However, as experienced cafe owners like Ko Jang-su have noted, the reality is starkly different. The competitive saturation of the market often leads to a quick turnover, with many new cafes disappearing after just a few years. Many owners enter the business with little to no prior experience, driven by the misconception that running a cafe is straightforward, especially when they see long queues at trendy locations.

Cafe success relies heavily on effective marketing, interior aesthetics, and menu innovation, often more than on the quality of coffee itself. This situation has evolved into a social media-driven narrative where how well a cafe photographs can dictate its popularity. However, pressures from low-cost franchises and rising costs of supplies further complicate profitability, making it increasingly difficult for small, independent owners to sustain their businesses.

Despite discouragement from experts, including celebrity chefs who share their own failures, new entrepreneurs continue to flock to the market, hoping to find their niche. Yet, as Mr. Ko puts it, a cafe should not be seen as a path to wealth, but rather as a place for community and enjoyment—reinforcing the notion that the love for coffee must precede the desire for profit in this highly competitive environment.

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