Coffee Subscriptions On The Rise As Major Franchises Seek To Lock Customers In – CoffeeTalk

Major coffee franchises in Korea are adopting subscription services as a new trend, offering customers perks such as free drinks or exclusive coupons for store benefits. This differentiates them from ordinary customers in terms of cost-effectiveness and boosts their market competitiveness against low-priced coffee franchise companies. Companies have observed a “lock-in effect” in subscription services, where customers become dependent on a company for a specific good or service.

Starbucks Korea has officially launched its first subscription service Buddy Pass, which offers a 30-percent discount on drinks and foods starting 2 p.m. every day for 9,900 won ($7) a month. The company is satisfied with how Buddy Pass has boosted business, with visitors to the stores offering the subscription service increasing by at least 50% on average. Users saved an average of 23,300 won per month.

Gong Cha Korea has recently finished test-launching its first subscription service at stores in traffic-heavy locations in Seoul, offering an unlimited number of drinks from seven different choices until 11 a.m. for 30 days. The Coffee Bean launched its first subscription service, Aurora, in November, offering three free drinks, 10% discount coupons for foods and drinks, and a birthday coupon.

The trend of low-price coffee shops has driven large-sized coffee franchises to introduce affordable choices for consumers. Subscription services have already generated buzz among convenience store consumers earlier this year, with BGF Retail updating its subscription service with new perks in May, boosting its number of subscribers by 60%.

Korea’s coffee market is highly competitive and in constant demand, with data from 2023 showing that Korea’s coffee consumption per person averaged 405 cups, significantly higher than the global average.

Read More @ The Korea Times