Starbucks to launch its first kiosks in Seoul next month

A Starbucks store in Seoul. The company is set to launch its first kiosk-operated location next month. Yonhap

Starbucks Korea will introduce self-service kiosks in May, breaking with the company’s long-held principle of in-person ordering, according to a report Thursday by the Kukmin Ilbo.

The pilot location will open in Myeong-dong, a bustling commercial district in Seoul popular with tourists, marking the global coffee chain’s first such store in Korea.

The move highlights a shift in priorities for Starbucks, which has long emphasized personalized customer interaction. The introduction of kiosks, however, reflects a growing focus on operational efficiency and customer convenience amid high foot traffic and evolving consumer behavior.

According to the report, Starbucks Korea plans to install self-service kiosks at its Myeong-dong location to streamline operations and alleviate congestion during peak hours. While the idea has been under review since late last year, the launch was delayed due to the brand’s extensive customization options and complex menu offerings.

Following the pilot, Starbucks Korea is considering expanding kiosks to other areas with high traffic or where language barriers may exist. The company said it will evaluate customer feedback and operational data before deciding whether to roll out the system to its 2,000 stores nationwide. Specific locations and scale of expansion have yet to be determined.

The company’s U.S. headquarters has long upheld a philosophy of maximizing direct interaction, encouraging baristas to take orders face-to-face and call out customers’ names when delivering drinks.

Until now, Starbucks Korea has followed that tradition. However, it has also been a leader in the brand’s digital transition, launching the mobile ordering service “Siren Order” in 2014, the first of its kind globally.

That service recently surpassed 500 million cumulative orders and now accounts for approximately 35 percent of all Starbucks Korea orders. Since late 2023, a paging system has also been tested in select large stores.

An industry insider said the shift reflects broader market trends. “Most coffee chains have already adopted kiosks. This move could be welcomed by hearing-impaired customers, foreign visitors, or MZ generation consumers who feel uncomfortable with face-to-face ordering,” the official said.

Meanwhile, Starbucks Korea’s operating company SCK Company's annual revenue surpassed 3 trillion won for the first time in 2024, rising 5.8 percent year-on-year to 3.1 trillion won ($2.3 billion). Operating profits jumped 36.5 percent to 191 billion won.

This article is translated by a generative AI system and edited by The Korea Times.