Three low-priced coffee brands open four stores every day

Affordable coffee franchises are growing at a time of high prices, with many customers attracted to a cup of coffee that only costs 1,500 won. The growth of franchise stores is driven mainly by Mega MGC Coffee, Compose Coffee, and Paik's Coffee, the top three low-priced coffee brands, coincidentally with a yellow logo.

According to the Fair Trade Commission (FTC)’s stats on franchise business released this April, the number of stores of the three leading players increased by 1,436 or 37.3 percent to 5,285 by the end of 2022 compared to 3,849 the previous year. This is practically an increase of four new stores opening per day. The FTC’s official records alone already show that they have grown this much.

They seem to be on a steeper increase, with each brand’s latest independently collected data also taken into consideration. According to industry data, the number of stores of these brands combined exceeded 7,000 across the country. Mega Coffee has more than 3,000 stores, followed by Compose Coffee, with 2,500 stores, and Paik's Coffee, with 1,600 stores.

With both cheap coffee brands and Starbucks growing in the market, analysts say that only those equipped with either cost-effectiveness or coziness can survive in times of high prices.

The number of coffee shops in South Korea has surpassed 100,000, a testament to the country’s fervent love for coffee. As of late 2022, the country boasted 100,729 coffee houses, up from 96,437 the previous year, a 4.5 percent increase, according to the FTC. This figure has doubled from 51,551 in just six years. The FTC also found that the country had more coffee brands (886) than chicken brands (669) as of 2022, further highlighting the nation's dedication to its coffee culture.


이민아 omg@donga.com