"Dominant No. 1" Starbucks Faces Sales Hit Over 'Tank Day' Controversy

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[Financial News] As South Korea's coffee franchise market continued to grow and monthly payments for major brands topped 1 trillion won last month, Starbucks Korea was reported to have recorded by far the largest payment volume. The market is now watching closely to see how the recent controversy over 'May 18 Tank Day' will affect overall coffee franchise sales.
WiseApp Retail, a market analysis platform based on real-time app and payment data, on the 27th released estimated monthly payment amounts for major coffee brands, based on a sample survey of credit and debit card spending by Koreans.
According to the data, the combined estimated payment amount for major coffee brands in April came to 1.019 trillion won. That was up 14% from 897.5 billion won in the same period last year. Over the past three years, the increase was 32%, with an average annual growth rate of 10%.
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The brand with the highest payment volume was Starbucks. When Starbucks' estimated payment amount is indexed at 100, Mega MGC Coffee followed at 69.3, then A Twosome Place at 47.5, Compose Coffee at 40.4, EDIYA COFFEE at 22.2, and Paik's Coffee at 19.0.
They were followed by Ten Percent Coffee at 12.6, Mammoth Coffee at 10.2, theVenti at 8.9, Hasam-dong Coffee at 8.6, Caffè Pascucci at 7.7, Hollys at 7.4, The Coffee Bean & Tea Leaf at 6.7, and Paul Bassett at 5.3.
The survey estimates were based on card payment data generated at each brand's directly operated and franchised stores. Cash transactions, bank transfers, and gifticon gifts sent through external platforms such as Kakao were excluded. Prepaid top-ups were reflected at the time of charging, not when the actual drink was purchased.
The survey was limited to major coffee brands with monthly estimated payments of at least 10 billion won, and the figures represent estimated consumer payments rather than each company's actual sales.
The market is paying attention to the fact that Starbucks continues to hold the top position in South Korea's coffee market. Concerns about damage to the brand image have also emerged after Starbucks Korea sparked controversy by running a promotion using phrases such as 'Tank Day' and 'Bang on the desk' on the anniversary of the May 18 Democratic Uprising.
As the controversy spread, Shinsegae Group dismissed the CEO of Starbucks Korea. Then, on the 26th, Chairman Chung Yong-jin issued a public apology.
y27k@fnnews.com Seo Yoon-kyung Reporter