Starbucks overcomes 'Tank Day' setback and reclaims No. 1 spot after five months

[Financial News] Starbucks has reclaimed the top spot in estimated credit and debit card spending for the first time in five months, following the controversy over the so-called 'Tank Day'.
According to Mobile Index, run by AI tech company IGAWorks, Starbucks' estimated credit and debit card spending totaled 121.08 billion won last month, up 4.3% from the previous month (116.12 billion won), the data showed on the 11th.
By contrast, rival A Twosome Place recorded spending of 110.5 billion won last month, down 6.4% from the previous month (117.99 billion won). Starbucks therefore overtook A Twosome Place by about 10.6 billion won, reversing their ranking.
Starbucks had ceded the top spot by spending to A Twosome Place for four consecutive months, from May through August. Its spending fell to 100.39 billion won in June, immediately after the controversy, but then rose for three consecutive months through September, reaching 110.06 billion won in July and 116.12 billion won in August.
After Starbucks and A Twosome Place, Mega MGC Coffee recorded spending of 94.75 billion won last month, down 3.2% from the previous month. Paik's Coffee was also down 6.4%, with spending totaling 22.94 billion won.
Industry observers attribute Starbucks' recovery largely to its resumption of new product launches and marketing activities in July, as the fallout from the Tank Day controversy gradually subsided. Starbucks Korea had drawn public criticism after using the name 'Tank Day' for a tumbler discount promotion on May 18, the anniversary of the May 18 Democratization Movement. As the controversy spread, Shinsegae Group undertook sweeping damage-control measures, including the dismissal of the CEO, a public apology and the suspension of summer promotions.
However, some observers say it is too early to conclude that overall sales have recovered, since these figures are estimates based solely on credit and debit card transaction data and exclude Starbucks' own prepaid cards and mobile gift certificates, which account for a large share of its payments.

[email protected] Kim Dong-gyu Reporter