Starbucks Korea is seeking solutions to defend profitability amid the spread of low-priced coffee brands and a saturated market. With simple store expansion having its limits, the company is pushing differentiated experiences while beefing up goods (fan merchandise) and food to raise the average ticket size.
According to the industry on the 6th, Starbucks is selling products in collaboration with Disney Pixar's "Toy Story." As mugs, keychains, and other MD goods draw attention alongside beverages and food, some items such as the online-only "claw machine" sold out right after launch.
Previously, goods released in collaboration with the Korea Baseball Organization (KBO) League sold out for major items such as can-cooler tumblers and keychains within one hour of online sales opening at the end of last month. On secondhand platforms, they sometimes changed hands at about double the price with a premium attached.
Recently, Starbucks has been trying various approaches to maintain competitiveness amid the onslaught of low-priced coffee brands. With limited capacity for new store openings, it is continuing external growth through Reserve (premium), specialized stores (special stores), and mobile coffee trailers (S:Beokcha), but defending profitability remains a task amid a strong dollar and burdens from materials and supplies.
Last year, SCK Company, which operates Starbucks Korea, recorded record-high revenue of 3.238 trillion won, up 4.4% from a year earlier, but operating profit fell 9.3% to 173 billion won. Net profit also declined 6% to 142.5 billion won.
The strategy of growing the food business—goods, snacks, and desserts beyond coffee—aligns with the company's push to improve profitability. Analysts say limited-edition goods launched through collaborations with the character, entertainment, fashion, and sports sectors increase customer visit frequency and raise the average ticket size.
Desserts targeting trends are also being rolled out in succession. Starbucks, which has introduced the Dubai jjondeuk cookie (also called the Dubai jjondeuk cookie), butter rice cake, and ube desserts, recently launched "bingsu blended," a shaved-ice drink served in a cup. It is a move responding to the popularity of "cup bingsu" across the coffee franchise industry, led by low-priced brands.
A program called "Tasty Journey," which has been running since Oct. 2024, also supports the strengthening of the food business. Through Tasty Journey, Starbucks is partnering with famous bakeries and gourmet brands nationwide—such as Owall's Bell, Old Ferry Donut, SCOFF, and Kitchen 205—to introduce seasonal food menus.
To capture new demand in the evening hours, the company is expanding into the alcoholic beverage category. After introducing cocktail menus at select stores in collaboration with global rum brand Bacardi, the Gwanghwamun Reserve store "Bar Mixato" is selling limited-edition cocktails using Hitejinro's "Ilpoom Jinro."
Starbucks Korea's first-quarter results this year are expected to be somewhat weak. In the securities industry, there is an expectation that revenue will increase slightly from a year earlier, but operating profit will fall about 20% to the mid-26 billion to 28 billion won range. The reason is one-off expenses reflecting the humidifier recall related to giveaway items from a fourth-quarter promotion last year, amid continued pressure from a strong dollar.