No. of Cafes in Korea Exceeds 100,000 as Low-Cost Franchises Expand Rapidly

Korea has seen a surge in the number of coffee shops, with the number of low-cost franchise brands surpassing 100,000. This growth is nearly double the combined number of the four major convenience store chains and the number of coffeehouse franchise brands, 886, surpassing that of fried chicken brands, 669. As of the end of 2022, Korea had 100,729 coffee shops, up 4.5% from the previous year and almost double the figure from 2016. The majority of these shops were small businesses with four or less employees, while the rest were franchise shops.

The market growth has been driven by the popularity of low-cost coffee franchise brands, such as Mega MGC Coffee, Compose Coffee, and Paik’s Coffee. These brands are known for their convenience, affordability, and large-sized drinks, distinguishing them from other top sellers in the local coffee shop industry.

The coffee shop market has also increased the country’s import of coffee beans, with coffee imports reaching $463 million in May, a 2.6% increase from the previous year. The relatively affordable cost of launching a coffee shop and the lack of specific techniques contribute to more people flocking to the industry. However, there are mixed views on the market, with some officials predicting a slower pace of growth and others stating that the number of coffee shops has been increasing steadily, indicating sufficient demand for the industry.

Read More @ Korea Times