As low-cost coffee brands spread and price competition intensifies, mid- and large-sized coffee franchises are rolling out subscription services one after another. The aim is to drive repeat visits and keep loyal customers. Some warn that if the services fail to gain traction early on, profitability could take a hit.
According to the industry on the 22nd, EDIYA COFFEE recently began a beta run of its "Regular store Blue Pass" subscription service through its application (app), "EDIYA Members." If customers designate a store they visit frequently, they can receive regular benefits such as drink discounts at that location. The structure provides one discount coupon per day, a strategy to encourage return visits. For now, a free trial is being offered to a subset of customers. EDIYA COFFEE plans to collect feedback from regular customers during the beta period and officially launch the service next month based on that input. The existing "Blue Pass" charges a monthly subscription fee of 3,200 won to 9,900 won, depending on the discount rate offered.
Starbucks Korea has operated a membership subscription service, "Buddy Pass," with a monthly fee of 7,900 won since 2024. Subscribers receive benefits such as a 30% discount on handcrafted beverages after 2 p.m. daily. According to Starbucks, the average purchase amount by users increased 61% and the number of purchases rose 72% immediately after the Buddy Pass launch compared with before subscription. A free, student-only membership, "Campus Buddy," is also in operation. Members who register their student ID in the Starbucks app can use the benefits at no additional expense. A Starbucks Korea official said, "The cumulative number of subscribers has surpassed 550,000, and it continues to grow."
Coffee Bean Korea's "Aurora Members" is a paid annual membership. It is a premium membership that offers ongoing discounts and various exclusive benefits only to enrolled customers. Recruited by cohort as a paid annual program (30,000 won). Through Nov. last year, it recruited and operated four cohorts. However, due to the cohort system and annual enrollment structure, it is considered to present a barrier to entry for short-term users.
The aggressive expansion and low-price strategies of low-cost coffee brands such as Mega Coffee and COMPOSE COFFEE are cited as the backdrop for introducing subscription services amid mounting concerns about customer churn from existing franchises. Instead of one-off promotions to counter the large-volume, low-price strategy, they are responding with "regular benefits." The aim is to capture a lock-in effect for regular customers. By requiring prepayment of a certain amount, it effectively confines consumers' choices within the brand.
However, among customer segments that do not consume coffee frequently, some say the practical benefit is limited compared with the subscription fee, weakening the incentive to join. Fatigue with subscription services and the psychological burden of recurring payments are also cited as drawbacks. A 35-year-old office worker surnamed Shin, who has used a cafe subscription service for three months, said, "Because I move around different areas and use various cafes, there are many times when there's no cafe nearby that I'm subscribed to," adding, "So far I've tried to make the most of the benefits, but if my visits to other cafes increase, I may reconsider renewing."
There is also the possibility that subscription services may amount to little more than returning benefits to customers who already visit frequently, rather than "retaining loyal customers." While the impact on attracting new customers may be limited, there are concerns it could lead to a drop in average ticket size and a deterioration in profitability. An industry official said, "If discounts through subscriptions and the prepaid subscription model fail to secure a large base of long-term subscribers, there is a risk it could instead lead to a decline in profitability," adding, "However, as the cafe market has become a red ocean (saturated market), the need to secure loyal customers has grown, prompting the adoption of subscription services."
Some also say various efforts beyond subscription services are needed to prevent customer churn. A coffee industry official said, "With high inflation recently dampening consumption, consumers are flocking to low-priced, large-volume coffee. From the perspective of mid- and large-sized franchises, tools to prompt return visits are needed," adding, "Efforts will be made to provide diverse experiences and benefits beyond subscription services."
Inha University consumer studies professor Lee Eun-hee said, "Subscription services can have a long-term sales-boosting effect, so if many long-term subscribers settle in, they can be effective," adding, "It is important to win support in the early days of the service through clear benefits and promotion."