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.“
Feb 27, 2015
