Key Facts
• COFFEE BEAN KOREA launches low-cost brand ‘Park’s Coffee’ in 2024.
• First store opened near Seoul headquarters; Americano priced at 1,500 won.
• Park’s Coffee’s Americano is one-third the price of COFFEE BEAN’s (5,000 won).
• Both COFFEE BEAN KOREA and StarLucks are led by CEO Park Sang-dae.
• Park Sang-dae owns 82.2% of COFFEE BEAN KOREA and 100% of StarLucks.
• South Korea’s low-cost coffee market has over 10,000 stores and is rapidly growing.
• Competitors include Mega MGC Coffee (3,700 stores) and Compose Coffee (2,900 stores).
• COFFEE BEAN KOREA’s 2024 revenue dropped 3.3% to 1.528 trillion won.
• Operating losses reached 1.1 billion won in 2024.
• Expansion strategy for Park’s Coffee remains undecided: franchise or direct operation.
• Premium coffee market growth slows, while low-cost chains dominate.
• Industry experts predict cautious expansion for Park’s Coffee.
Summary
COFFEE BEAN KOREA, once a rival to Starbucks, has entered South Korea’s competitive low-cost coffee market with its new brand, Park’s Coffee. The first store, launched near Seoul headquarters, offers an Americano for 1,500 won-one-third the price of COFFEE BEAN’s. CEO Park Sang-dae, who owns a majority stake in both COFFEE BEAN KOREA and StarLucks, aims to leverage price competitiveness to regain market share. South Korea’s low-cost coffee market, dominated by chains like Mega MGC Coffee and Compose Coffee, has over 10,000 stores and continues to grow, while the premium segment faces stagnation. Despite COFFEE BEAN KOREA’s declining revenue and operating losses in 2024, industry experts believe Park’s Coffee could achieve stable growth if it capitalizes on its operational expertise. The brand’s expansion strategy-whether through franchising or direct operations-remains undecided, as it tests market reactions in this highly competitive sector.
