Tim Hortons, Peet's Coffee entry to intensify competition in Seoul's premium coffee market
Tim Hortons' coffee and donuts / Courtesy of Tim Hortons
By Kim Jae-heun
Hot competition among premium coffee chains is forecast as Tim Hortons prepares to open its first store in Seoul and Peet's Coffee registered its trademark rights here in May, industry officials said Wednesday.
A Canadian multinational coffeehouse chain, Tim Hortons is currently hiring manager-level employees to take charge of developing directly managed stores in Korea. Tim Hortons has not revealed its exact opening date, but the chain hinted it will open its first store in the second half of this year ― most likely early in December.
Peet's Coffee, a gourmet coffee chain originating from Berkeley, California, and often compared to Starbucks Coffee, registered trademarks for food and beverage services, as well as advertising and business management under its brand, two months ago.
When both coffeehouse chains enter the domestic market, they are expected to compete directly with Starbucks Korea, the current leading coffee shop franchise in the country.
Currently, there is no prominent rival to Starbucks Korea. Local franchise brands such as Mega Coffee and Ediya Coffee occasionally challenge Starbucks, but the American multinational chain firmly maintains its top position.
“When Tim Hortons and Peet's Coffee open their first stores in Seoul, they will go viral for sure, like
. Starbucks is too common now in Korea. Consumers want new premium coffeehouse brands. There hasn't been one since Blue Bottle Coffee entered the local market in 2019,” a local franchise firm official said.
“They can also target foreign tourists visiting Korea. For those who are from countries that do not have Tim Hortons or Peet's Coffee, the North American coffeehouse chain stores in Seoul can become tourist destinations.”
Another industry official emphasized the importance of choosing the right business partner.
“The biggest reason for Starbucks' business success in Korea can be attributed to its partnership with Shinsegae, one of the country's largest retailers. Having only brand power will not give a chance to Tim Hortons or Peet's Coffee to challenge Starbucks here,” a local retail firm official said.