"Company Coffee is the Best" These Days, Office Workers Gather in the Pantry

Coffee Shops Raise Prices One After Another
Companies Expand Office Cafes as Employee Benefits

Office workers are gathering at office cafes to save on coffee expenses. The photo is not related to the specific content of the article. [Image source=Yonhap News]

[Asia Economy Intern Reporter Lee Gyehwa] As coffee prices continue to rise, office workers are turning to so-called "company coffee" provided free of charge at their workplaces instead of going to cafes. For example, they drink coffee in the pantry where coffee is prepared. A new term, "coffeeplation" (coffee + inflation), has even emerged in some circles.

According to Statistics Korea on the 18th, the dining-out price index rose 6.7% in the first half of this year compared to the previous year. Among items, coffee prices increased by 4.2%. This is because adverse weather conditions reduced coffee bean production, and disruptions in the international supply chain due to COVID-19 caused a sharp rise in coffee bean prices.

In this context, Starbucks raised the prices of 46 beverages, including Americano and Caffe Latte, by up to 400 KRW earlier this year. Large coffee franchises such as Twosome Place, Hollys Coffee, Tom N Toms, Coffee Bean Korea, Paul Bassett, and Angel-in-us Coffee also raised their coffee prices one after another. Coffee Bean Korea raised beverage prices twice in February and May and increased the Americano price from 4,800 KRW to 5,000 KRW.

As major coffee specialty stores recently raised beverage prices citing increases in coffee bean prices and logistics costs, the number of office workers seeking low-priced coffee is also increasing. However, low-cost coffee franchise brands that competed on cost-effectiveness, such as Mammoth Express, Mega Coffee, and Compose Coffee, also raised prices on key products.

Earlier this year, when Starbucks raised its coffee prices, major coffee franchises also followed suit with price increases. The photo is not related to the specific content of the article. [Image source=Yonhap News]

Given this situation, some say even having a cup of coffee after a meal is frightening. Kim, a man in his 30s, said, "I drink more than two cups of coffee a day, but since I usually enjoyed coffee from large franchises, the price became a burden, so I switched to a low-cost brand," adding, "Prices have risen so much that living expenses are tight, so I think I need to cut back on coffee expenses first." Another office worker in his 40s said, "I often use company coffee," and added, "When the economy is tough, I will drink coffee provided within the company."

Meanwhile, corporate coffee provision is expected to expand gradually. According to a survey conducted on 370 companies by Brown Bag Bliss, a company that provides subscription-based coffee, the reasons for providing free coffee were ▲strengthening in-house welfare 70% ▲providing coffee to visiting customers 13.5% ▲requests from employees 9.0%, among others.

Experts view drinking company coffee as part of the changing coffee culture and a matter of personal choice. Professor Seol Donghoon of the Department of Sociology at Jeonbuk National University said, "People may choose company coffee to minimize spending due to high prices, but there are also various psychological and complex reasons, such as the quality of company coffee not being bad and reluctance to visit crowded places due to COVID-19."

Professor Lee Minjae of the Department of Global Business at Mokwon University said, "I see it as a process of changing coffee culture," adding, "Consumption of franchise coffee is increasing, and drinking brewed coffee has become a daily habit." He further analyzed, "Since it has become common to brew coffee beans at the company as well, it is just a difference in the way coffee is consumed between large coffee shops and the workplace."

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