Coffee price war hits big chains

/ Yonhap

Bakeries, fast food outlets and convenience stores are challenging big coffee chains by offering coffee ranging from 1,000 to 2,000 won ($0.91 - $1.82).

Paris-baguette, a Korean bakery brand, recently introduced “Cafe Adagio”, which provides high-quality coffee at a lower price than the big chains.

Americano costs 2,500 won ($2.27) and cafe latte 3,500 won ($3.18). This is only 50-70 percent of the price major coffee chains charge.

Coffee sales have soared 50% for Paris-baguette with the new brand.

McDonald’s renovated its McCafe brand last month, lowering coffee prices. Medium-sized cafe latte and cappuccino now cost 2,300 won ($2.09), down from 2,900 won ($2.64).

Cheaper coffee sold at convenience stores is also growing in popularity. Espresso sales at CU, a convenience store franchise, rose 32.9% last year compared with the previous year.

The franchise said good accessibility and affordable prices contributed to the increase.

Japan-based convenience store brand Ministop is operating ‘Mini Cafe’, a joint business with coffee house Jardin.

“With increased coffee imports, coffee bean qualities are improving,” a Ministop manager said. “Business people looking for affordable coffee buy the products.”