[Should I Start a Business Too] "Yes, the Coffee from Penthouse"... Coffee Bay 'Coexisting' with the Local Community

Coffee Bay store. Photo by Coffee Bay

[Asia Economy Reporter Moon Hyewon] Celebrating its 12th anniversary this year, Coffee Bay is a leading mid-range coffee franchise brand in South Korea, operating approximately 600 stores nationwide under the spirit of coexistence that "franchisees and headquarters are one."

Recently, Coffee Bay gained significant attention as its strawberry season menu and new bingsu menu were featured in SBS drama "Penthouse" seasons 2 and 3, which recorded high viewership ratings. In particular, the strawberry season menu received great response, achieving high sales with a promotion selling 5,000 TMON gifticons selling out early, driving franchise store sales in the first half of this year.

Building on this momentum, Coffee Bay is accelerating franchise expansion nationwide. Recently, it simultaneously opened two directly operated stores at Jeju International Airport, intensifying the expansion of both directly operated and franchise stores. Coffee Bay plans to offer a variety of menu items such as espresso, ade, juice, toast, and sandwiches at its directly operated stores in Jeju International Airport for travelers.

Coffee Bay currently operates its own roasting plant and provides high-quality coffee beans that realize the brand's unique coffee flavor to franchise stores at reasonable prices.

To reduce seasonal impact and secure stable sales, Coffee Bay consistently introduces new menus reflecting seasonal trends. Recently, to enhance delivery competitiveness, it has launched various bakery menus such as egg buns and kaya toast, which are easy to package and can be used as meal substitutes.

The new store opening cost for Coffee Bay is approximately 47 million KRW for an 8-pyeong store and about 86 million KRW for a 25-pyeong store.

The headquarters has lowered raw material supply prices during last year and this year when many franchise stores faced difficulties due to COVID-19, and operates various support promotions such as delivery promotions, social hot deal promotions, and coexistence relay promotions.

Coffee Bay was recognized for well establishing a coexistence platform between headquarters and directly operated and franchise stores, receiving the highest grade for four consecutive years in the ‘Franchise Level Evaluation.’

Additionally, it has become a model of a reliable franchise brand by winning the ‘2020 Korea Franchise Industry Development Merit Award,’ the most prestigious award in the franchise industry, for nine consecutive years.

Baek Jinseong, CEO of Coffee Bay, stated, “A franchise company that does not listen carefully to the opinions of franchisees has no future, and a brand that does not continue coexistence with customers and local communities cannot sustain itself,” adding, “It is important to reduce risks by testing operational policies that greatly affect store management at directly operated stores before introducing them to franchise stores.”

This content was produced with the assistance of AI translation services.