South Korea’s coffee shop boom – 1 in 10 are losing money
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The number of coffee shops in South Korea continues to grow. More than 71,000 coffee shops are now operating nationwide, with 14,000 openingsz last year alone.
According to a report by KB Financial Group Management Research Institute, the increase in the number of coffee shops is because the number of new shops opening has dramatically outpaced the number of shop closures.
In 2009, 27,000 new shops were opened and 4000 closed. On the other hand, 14,000 opened last year and 9000 closed.
Meanwhile, 11 percent of local coffee shops were found to be operating in the red. This rate is higher than the 4.8 percent of restaurants that are also unprofitable.
Questions & Answers
Q.What is the total number of coffee shops currently operating in South Korea?
What is the total number of coffee shops currently operating in South Korea?
There are now over 71,000 coffee shops operating nationwide. This figure reflects the continued growth in the sector across South Korea.
Q.How many new coffee shops opened last year, and how many closed?
How many new coffee shops opened last year, and how many closed?
Last year, 14,000 new coffee shops opened, while 9,000 shops ceased operations. This indicates a significant net increase despite some closures.
Q.What percentage of South Korean coffee shops are currently operating at a loss?
What percentage of South Korean coffee shops are currently operating at a loss?
Currently, 11 percent of local coffee shops are operating in the red, meaning they are unprofitable. This rate is higher than that seen in the restaurant sector.
Q.How does the coffee shop profitability compare to the restaurant sector?
How does the coffee shop profitability compare to the restaurant sector?
The 11 percent of unprofitable coffee shops is significantly higher than the 4.8 percent of restaurants that are also operating at a loss in South Korea.
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