World-renowned cafes are rapidly entering the Korean market, leveraging Korea’s status as the country with the highest number of cafes per capita and the third-largest coffee market globally, after the U.S. and China. These brands are targeting a market dominated by budget-friendly chains like MEGA MGC COFFEE and mid-to-high-end options like Starbucks, adopting a premium strategy to set themselves apart.
Industry sources reported on Aug 6. that Intelligentsia, one of America’s top three specialty coffee brands, recently opened a store in the main branch of Shinsegae Department Store in Seoul. Founded in Chicago in 1995, Intelligentsia is highly esteemed alongside Blue Bottle Coffee and Stumptown Coffee. This is its second location in Seoul, following the first store in Seochon, which opened in March.
Specialty coffee is defined by the Specialty Coffee Association as coffee scoring 80 points or above out of 100.
This month, Lotte Department Store introduced Korea’s first Bacha Coffee, a Moroccan heritage brand, in Cheongdam-dong, Seoul. Bacha Coffee’s entry into Korea follows its presence in nine other countries, including Singapore, Dubai, and France.
Canadian brand Tim Hortons entered Korea last December, opening its first store at Sinnohyeon Station in Seoul. By adopting a premium strategy, Tim Hortons set its prices more than twice as high as in Canada. The brand now operates 12 stores nationwide, selling around 300,000 donuts and over 100,000 cups of coffee within a month of its launch in Korea. The company plans to expand to 150 stores within five years.
Japan’s NO COFFEE, known for its black latte, opened its first store in Apgujeong, Seoul, in April this year. Other brands are also preparing to enter the Korean market. Ralphs Coffee, the coffee franchise by American fashion brand Ralph Lauren, is currently recruiting baristas through job websites. Norwegian coffee brand Fuglen recently launched its official social media accounts in Korea, announcing its search for real estate to establish a presence in the country.
