Choiganguk "Seomin means how can ordinary people drink premium coffee"
People Power Party "Nitpicking and baseless criticism rampant" rebuttal

On the 5th, following the remarks of Han Dong-hoon, the Emergency Response Committee Chairman of the People Power Party, who visited the 'Starbucks Gyeongdong 1960 Branch' in Dongdaemun-gu, Seoul, consumers' attention has focused on the price levels of coffee specialty stores. Chairman Han mentioned the win-win model of Starbucks Gyeongdong 1960 Branch that day, saying, "Starbucks is actually a strong player in the industry. This is not a place where ordinary people usually come, but it has signed a win-win agreement to provide 300 won per item sold to the Gyeongdong Market Merchants Association inside Gyeongdong Market."


In relation to this, controversy arose mainly in online communities and political circles, with comments such as "Starbucks is not a place for ordinary people? Isn't Chairman Han unaware of reality?" Some opposition members criticized Chairman Han, calling it a 'demeaning remark toward ordinary people.' Former Democratic Party lawmaker Choi Kang-wook argued on a YouTube channel that day, "In his mind, Starbucks is an American brand, known as a relatively premium coffee, so he thought, 'How could you ordinary people drink that?'"

Handonghun, Emergency Response Committee Chairman of the People Power Party, is greeting merchants at Gyeongdong Market in Dongdaemun-gu, Seoul on the 5th. <br>[Photo by Hyunmin Kim kimhyun81@]

Handonghun, Emergency Response Committee Chairman of the People Power Party, is greeting merchants at Gyeongdong Market in Dongdaemun-gu, Seoul on the 5th.
[Photo by Hyunmin Kim kimhyun81@]

View original image

In pro-opposition communities, criticisms continued such as "Are ordinary people supposed to just buy canned coffee?", "If you drink a 5,000 won Starbucks coffee, you are wealthy. If you drink a 2,000 won Mega Coffee, are you ordinary?", and "Is Starbucks a place only for noble prosecutors?" As the controversy grew, the People Power Party immediately rebutted, calling it 'smearing.'


Park Jeong-ha, the chief spokesperson of the People Power Party, stated in a commentary, "Today, Chairman Han visited Starbucks Gyeongdong 1960 Branch and explained the win-win cooperation model that accumulates 300 won per item sold in the store to create a regional win-win fund for Gyeongdong Market," adding, "Regardless of the original intent and purpose, some remarks have been selectively taken out and used for nitpicking and smearing." He further warned, "We caution against such movements that are obsessed only with finding easy targets for criticism. It is a low-level behavior."

Major Coffee Shops' Americano Prices Range from 4,000 to 5,000 Won

The price of Americano, considered a representative menu item at major coffee specialty stores, is formed in the range of 4,000 to 5,000 won. Starbucks, the number one coffee specialty store in Korea by sales, sells a Cafe Americano and Cafe Latte at 4,500 won and 5,000 won respectively for the basic size Tall (355 mL). Since the price increase in 2022 after eight years, the prices of these menu items have been frozen. Similarly, Twosome Place excluded coffee from last year's price hike, selling Americano at 4,500 won and Cafe Latte at 5,000 won. The coffee specialty store with the highest prices is Coffee Bean, which recently raised prices consecutively.

The price of an Americano, considered a signature menu item at major coffee chains, ranges from 4,000 to 5,000 KRW. At Starbucks, the number one coffee chain in Korea by sales, the prices for a Cafe Americano and a Cafe Latte are 4,500 KRW and 5,000 KRW respectively, based on the standard size Tall (355mL). <br>[Photo by Jinhyung Kang aymsdream@]

The price of an Americano, considered a signature menu item at major coffee chains, ranges from 4,000 to 5,000 KRW. At Starbucks, the number one coffee chain in Korea by sales, the prices for a Cafe Americano and a Cafe Latte are 4,500 KRW and 5,000 KRW respectively, based on the standard size Tall (355mL).
[Photo by Jinhyung Kang aymsdream@]

View original image

Coffee Bean raised the prices of milk-based beverages by 100 won last month. After increasing latte products by 200 won last year, it adjusted prices again within a year, making a small-sized Cafe Latte nearly 6,000 won at 5,900 won. Americano remained at 5,000 won. Ediya Coffee, which boasts the most stores (3,800 as of the end of last year) by emphasizing cost-effectiveness (performance relative to price), sells Americano and Cafe Latte at 3,200 won and 4,200 won respectively for its basic size Large (532 mL).


Recently, low-priced coffee brands expanding their presence amid high inflation offer significantly lower prices. Typically, Americano prices range from 1,000 to 2,000 won. Mega Coffee, which features soccer player Son Heung-min as its advertising model, sells at 2,000 won, and Compose Coffee, with BTS member V as its new face, sells at 1,500 won. An industry insider said, "It is true that Starbucks once had a premium image, but due to long-term price restraint, it is hard to see it that way now," adding, "Rather, the perception has solidified that it is coffee that anyone can enjoy."


Meanwhile, Starbucks Gyeongdong 1960 Branch, located in Gyeongdong Market where Chairman Han visited, is the only Starbucks store in the world that preserves the structure and concept of an old theater. It transformed the closed Gyeongdong Theater into a new space through remodeling and is considered one of Starbucks Korea's regional win-win models. Not only does the store share part of its sales revenue with Gyeongdong Market merchants, but the Gyeongdong Theater, built in the 1960s, has become a hot place attracting the MZ (Millennial + Z) generation.



The store retains the theater's stepped structure and features retro-style interior and lighting to preserve the theater's unique atmosphere. When a beverage is ready, a beam projector displays the customer's order number on the screen. This location is also one of the 'Top 10 Starbucks Landmark Stores' selected by Starbucks Korea among approximately 1,900 stores nationwide in collaboration with the Korea Tourism Organization for the '2023-2024 Visit Korea Year.'


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

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing