Price hikes are continuing across the coffee franchise industry. The pressure from rising materials and supplies costs has grown because of the strong dollar and the prolonged war in the Middle East.
According to the industry on the 4th, MEGA MGC COFFEE plans to raise prices of three items in its "Halmega Coffee" lineup by 200 won each starting on the 19th. Halmega Coffee will go from 2,100 won to 2,300 won, King Halmega Coffee from 3,200 won to 3,400 won, and Halmega Misut Coffee from 2,900 won to 3,100 won. MEGA MGC COFFEE said the adjustment is intended to preserve franchisee revenue and maintain quality as the price of freeze-dried (FD) coffee, the key ingredient in these drinks, keeps rising.
The Venti, a low-priced coffee brand, also raised prices on key menu items except for Americano by 100–500 won starting on the 29th of last month. Vanilla latte (large) increased from 3,500 won to 3,700 won, and Icheon rice latte from 2,800 won to 3,300 won. Cold brew latte and items such as vanilla cream and hazelnut cream cold brew rose by 400 won.
Prices for stick coffee and instant coffee products sold in stores are also trending upward. The Coffee Bean raised the price of its vanilla latte stick coffee in stick-pack packaging by up to 8.1% starting this month. It moved to an additional increase five months after raising prices in January by 200–300 won on some drip coffee menu items and on the decaf bean substitution option.
EDIYA COFFEE also raised in-store stick coffee and instant coffee product prices by 4.3–15.2% starting on the 6th. Banapresso in March increased prices on some items, including decaf and cold brew, by up to 700 won.
A coffee industry official said, "With high inflation and a strong dollar, and the war dragging on, the burden of materials, parts, and logistics expense is a reality," adding, "The trend of price hikes is likely to continue for a while, centered on coffee franchises."