Starbucks Hopes Expanded Hours & Promotions Will Help It Compete Against Korea's Mega Coffee – CoffeeTalk

Starbucks Coffee Company (SCK), a subsidiary of the Shinsegae Group, has announced plans to keep at least 80% of its 2,000 stores open until 10 p.m. in response to competition from budget coffee shop brands. SCK has also introduced discount promotions for customers ordering decaffeinated beverages in the late afternoon and those making purchases twice a day. The company described the change as a “normalization” of hours, but many see it as a direct response to the aggressive expansion of smaller rivals.

According to the Financial Supervisory Service, SCK posted sales of 3.1 trillion won ($2.2 billion) and an operating profit of 190.8 billion won last year, the highest among Korean coffee shop operators. A Twosome Place ranked second in sales with 520.1 billion won, followed by Annhouse, which operates Mega MGC Coffee, with 466 billion won. In terms of operating profits, Annhouse overtook Twosome with 107.6 billion won in 2024, a 55% year-on-year increase. SCK’s operating profit rose 36.5% from the previous year.

Mega’s rapid expansion poses a challenge to Shinsegae Group Chairman Chung Yong-jin’s plan to open 100 new Starbucks locations in Korea this year. To bolster its presence, the company is introducing further strategies to attract nighttime customers and improve service efficiency. Last month, SCK began testing self-service kiosks at Starbucks stores in Myeong-dong, one of Seoul’s busiest tourist districts.

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