Is the end of the low -cost coffee market?

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OOI
2024
2025
1. Domestic coffee market status and growth of low-price coffee
By the end of 2024, the number of domestic coffee shops will exceed 200,000.
It is so saturated that it accounts for a significant portion of the total number of restaurants.
It’s early.
Number of coffee franchises registered in the information disclosure statement as of 2024
with 1344; Qi Kwon Brand Overwhelms Surum, a major player in the domestic startup market
It is established as an industry.
Among all cafes, there are approximately 26,000 coffee franchise stores.
Accounting for 25% of the market, the growth of low-price coffee brands is particularly strong.
It breaks down.
Combined number of stores of top low-priced coffee brands by 2023
The number exceeded 8,300 units, and it has already reached a state of oversaturation, so additional
It is difficult to expand famous stores.
Inon Gamung branch of Paris Baguette, which has the largest number of stores in Korea
This figure far exceeds the number (approximately 3,400).
2. Problems with the low-price coffee business structure
The operating structure of low-priced coffee is mostly similar, from headquarters to branch stores.
The cost of coffee beans and consumables is high, averaging 38-40%.
all:
For consumer accessibility, most 1i species must be located in a hard-to-locate location.
The burden of rent is high, and labor costs are also high due to the decline in delinquency.
It’s significant.
Because consumers focus on price, they
Low loyalty makes it difficult to raise prices.
The price of raw coffee beans to maintain low-cost coffee bean frames has fluctuated over the past five years.
The limit to preventing downward pressure is approaching due to the steady upward trend.
Yes.
Despite these structural problems, similar brands are mushrooming.
This is a situation that just happens.
3. Soaring coffee bean prices and crisis of low-priced coffee
The price of coffee beans soared by 80% in 2024 alone.
Both Vika and Robusta coffee beans are at record high prices.
Decrease in coffee yield due to Brazil’s abnormal climate and Betnim’s robe
The decline in star coffee production is the main reason for the rise in coffee bean prices.
The rise in the won-dollar exchange rate is also affecting the rise in coffee bean prices.
all.
Soaring bean prices affect the entire coffee industry, but especially margins.
It is expected to deal a serious blow to low-price coffee companies with limited scope.
Some low-cost coffee brands have already raised their prices, and will add more in the future.
A price increase appears to be inevitable. 1,500 won low price coffee
It is expected that it will be difficult to maintain it any longer.