By Lee Hyo-sik
Coffee vending machines are disappearing fast as more consumers turn to instant coffee mix rather than buying coffee from machines on the street for convenience and sanitary reasons.
Additionally, more enjoy freshly-brewed coffee at franchised shops in line with rising living standards, while the stores offer a wide range of drinks.
The vending machines used to be ubiquitous on university campuses, in office buildings, offering cheap instant coffee.
According to the Korean Association of Automatic Machine Operators, Tuesday, the number of coffee vending machines nationwide dropped sharply to 51,782 last year from 109,214 in 2008. It means that an average of 20,000 machines disappeared annually over the past three years.
``A decade ago, there were more than 400,000 coffee vending machines in operation across the country. But the number plunged, as did the sales per machine,’’ an association official said. ``Many of those operating the machines are on the brink of bankruptcy.’’
Lotte International, a trading arm of Lotte Group, first brought 400 coffee vending machines into the country from Japan in 1977. In the 1980s and ‘90s, operating coffee vending machines was as a lucrative business, with large firms rushing to enter the sector, as more and more Koreans became addicted to the sweet testate of instant coffee.
However, the market reached a saturation point in the mid-2000s and began showing a downward curve as both Korean and non-Korean coffee shop chains became popular.
``With people getting richer, they seek healthier, tastier coffee. They flock to shops offering freshly-brewed coffee. Additionally, food companies have introduced an array of beverages containing coffee. Accordingly, fewer people buy coffee from vending machines,’’ the official said.
He also said large food companies set up and operate coffee vending machines, driving many small operators to the brink of collapse. ``There are only a few mid-sized operators left in Seoul and its surrounding cities. So, we have asked the government to prevent large firms from running machines to protect small operators.’’