April 27, 2024

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[THE INVESTOR] Starbucks Korea will become the first coffee shop franchise to generate 1 trillion won (US$856.06 billion) annual revenue, according to the company on Nov. 15.

At an executives’ meeting of Shinsegae Group affiliates, the company also announced that its revenue this year has hiked 30 percent on-year.

 

According to the quarterly report filed by E-mart, the South Korean operation of the US coffee giant has posted 715.4 billion won revenue in the first nine months.

Considering that the fourth quarter, with cold weather and Christmas holiday, is the most lucrative period for the coffee industry, Starbucks Korea is expected to easily top the 1 trillion won mark, experts say.

“Existing stores have steadily shown double-digit growth, and the number of outlets have increased, impacting sales,” explained an official at the coffee chain which is also expected to be the first to have 1,000 stores.

Starbucks opened its first store here in 1999, and has over 950 as of October, expanding at a rate much faster than it planned -- 700 by 2016.

Even more significant than the expansion, the revenue of existing stores continues to grow. The average turnover at stores rose close to 10 percent on-year in 2015.

Its tea specialty range and merchandise have significantly contributed to revenue. Starbucks Korea also attracted more clientele with its “siren order” system that allows customers to order in advance through a mobile application, as well as drive-thru stores.

By Hwang You-mee (glamazon@heraldcorp.com)