STiR coffee and tea magazine

STiR coffee and tea 23 Enjoy with confidence Vertrauen in Genuss Enjoy with confidence Vertrauen in Genuss YOUR EXPERT for high quality leaf tea High level of product security Extensive stock availability of a wide range of teas Organic and sustainable certified teas www.wollenhaupt.com New low-priced coffee brands offer extra large 1-liter cup sizes to attract more customers. Photo courtesy Mainbayar Badarch for Compose Coffee. For Mega Coffee, there were 8 cases of franchise contract terminations and 246 name changes in 2022. Enlarging floor space raises the rent and increases the burden of operat- ing and advertising costs, reducing fran- chisees' profits and, therefore, increasing name transfers and closures. When it was pointed out that fran- chisees were being excessively burdened with marketing costs and other expenses to maximize operating profits, Mega Cof- fee changed its sales calculation method and intentionally lowered its operating profit ratio. The YS3 companies, which have solidified their position as the lead- ers of the low-priced coffee industry, are now hesitating. One successful strategy the new low-price competitors are using to challenge the YS3 is to target the 'delivery market' by selling snacks that wouldn't be eaten in a cafe, such as tteokbokki or popcorn. Bongmyeong Dongnae Coffee and Baek Eok Coffee are two examples of cafes specializing in delivery. The "Bigger, Cheaper, and Deliver" startup strategy works well. The new companies' relatively reduced startup and interior design costs allow them to offer KRW100 to 200 cheaper prices. Some new players compete by selling extra- large volumes bigger than the standard venti (approximately 600 ml). 3X Large Coffee and 1 Liter Coffee sell 1L iced Americanos for KRW 2,000-3,000. Global Market Expansion As the domestic market reaches saturation, South Korean coffee brands are now put- ting their efforts into expanding overseas. Mega Coffee opened its first overseas store in Ulaanbaatar, Mongolia's capital, in May 2024 and began to explore other overseas markets. The store caters to various consumer preferences with over 150 menu items, including coffee, accessories, and frappes. Korean pop culture is extremely popular among the younger Mongolian generations. Hollys opened the Namba Marui store in Osaka, Japan, in May 2024. Since opening its first store in 1988, the Osaka shop became Hollys' first overseas direct-management CQI arabica / robusta instructor Paul K. Kim highlights South Korea's growing interest in specialty coffee. Photo courtesy Paul K. Kim Bungeoppang is a popular South Korean sweet treat. Ediya Coffee sells these fish-shaped cakes filled with black sesame paste at its Guam locations. Photo courtesy Ediya Coffee

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