The number of Starbucks application (app) users, which had plunged amid controversy over a "Tank Day" promotion timed to the May 18 Democratization Movement anniversary, rebounded in July. However, it did not recover to the level before the controversy, and in the meantime, the low-priced coffee brand MEGA MGC COFFEE appears to have closed in on Starbucks in payment volume.
According to retail analytics service WiseApp·Retail on the 19th, the monthly active users (MAU) of the Starbucks app in July were 7,144,000, up 11.4% from 6,413,000 in June. Starbucks app users fell 15.0% from 7,548,000 in May to 6,413,000 in June, right after the Tank Day controversy broke, then rebounded in a month.
However, the recovery was only halfway. The number of users in July was still 5.4% lower than in May before the controversy, and 6.8% lower compared with the same month last year (7,664,000).
Looking at estimated card payments, Starbucks ranked No. 1 in estimated credit and debit card spending in July, but analysts noted that No. 2 MEGA MGC COFFEE climbed to 94.9% of Starbucks' level (based on an index with Starbucks set to 100). In the same month last year, that figure was 69.5%. The gap narrowed by 25.4 percentage points in a year.
They were followed by A TWOSOME PLACE (63.9), COMPOSE COFFEE (54.9), EDIYA COFFEE (31.0), PAIK'S COFFEE (26.0), TENPERCENT SPECIALTY COFFEE (18.0), MAMMOTH COFFEE·EXPRESS (13.1), The Venti (12.7), HASAMDONG COFFEE (12.5) in that order.
On an app user basis as well, MEGA MGC COFFEE recorded 3 million users, ranking second. That is a record high, up 7% from the same month a year earlier. They were followed by COMPOSE COFFEE (1.42 million), A TWOSOME PLACE (1.40 million), PAIK'S COFFEE (840,000), and EDIYA COFFEE (590,000). The low-priced brand COMPOSE COFFEE outpaced A TWOSOME PLACE in number of users but lagged in estimated payment amount. The gap in average ticket size appears to have played a role.
Analysts say Starbucks' slow recovery stems from damaged brand trust combined with a marketing void. On July 13, Starbucks Korea announced internally that it was canceling the "2026 Summer e-Frequency," which had been scheduled from June 2 to July 26. The e-Frequency is a signature promotion that boosts app traffic and repeat visits by giving out limited-edition goods when customers purchase a set number of drinks, including mission beverages.
Meanwhile, this survey is a sample study of Android and iOS smartphone users in Korea. Estimated payment amounts do not include account transfers, cash, or payments made through partners, so they may differ from individual corporations' actual sales.