Coffee Prices Also Raised Due to Rising Raw Material Costs Including Coffee Beans

On the 1st, when restrictions on the use of disposable items in stores under the Resource Recycling Act resumed, a customer at a franchise coffee shop in Seoul was transferring coffee into a mug. The temporary allowance for the use of disposable items in food and beverage establishments such as cafes, which had been permitted due to COVID-19 and other reasons, was restricted again starting this day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Eunmo Koo] Since the beginning of this year, major franchise coffee shops have continued to raise their prices due to the ongoing rise in international coffee bean prices, minimum wage increases, and higher logistics costs that started last year.

Lotte GRS announced on the 14th that it will raise the prices of products at its coffee franchise Angel-in-us by an average of 2.5%.

The price increase applies to a total of 43 items, including 21 types of coffee and 17 types of desserts. The signature Americano will increase from 4,300 won to 4,500 won, Honey Lemon Tea from 4,900 won to 5,000 won, and Cube Sweet Bread from 5,300 won to 5,500 won. A Lotte GRS official stated, "Due to the rising costs of raw materials such as coffee beans and the increase in minimum wage, we adjusted the selling prices to maintain franchisees' profitability."

Earlier this year, major coffee shops such as Starbucks, Twosome Place, Hollys, Tom N Toms, and Paul Bassett raised their product prices one after another, citing increased raw material costs.

Starbucks led the coffee price hikes. Starbucks raised prices by 100 to 400 won on 46 out of 53 beverages sold. The Americano price increased from 4,100 won to 4,500 won. Starbucks had previously maintained prices by relying on stockpiled supplies through large-scale contracts for coffee beans and milk, but this year chose to raise prices.

Hollys raised coffee prices by 400 won and prices for Hollichino and chocolate products by 200 won. Twosome Place increased prices on 21 out of 54 coffee beverages. Tom N Toms raised prices on 31 beverages and 13 bakery and dessert items, and Coffee Bean Korea also raised major coffee prices by 100 won each. This month, Paik’s Coffee, operated by CEO Paik Jong-won, also raised prices on some beverages and desserts by 200 to 500 won. Paik’s Coffee announced that it raised prices on 22 beverage items and 6 dessert items starting from the 5th of this month.

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