Starbucks is evaluating the possibility of selling its UK business, its largest market in the Europe, Middle East and Africa region. Hit by the pandemic, the normalization of remote working and a decline in tourists, Starbucks UK has been slow to recover, while also facing fierce competition from chains such as Pret A Manger, Tim Hortons and Costa. At the same time, Starbucks is also facing slowing growth and unionization pressure in the Chinese and US markets. This is not the first time Starbucks has sold a regional business; its South Korean business was previously taken over by Emart. This article examines the market logic and challenges behind Starbucks' global business adjustments. For more specialty coffee bean news, follow Front Street Coffee. [more…]

Affected by rising coffee futures prices and ongoing international logistics disruptions, Starbucks Korea has experienced a round of coffee bean supply fluctuations since the beginning of this year. From announcing a price increase for Americanos in January, to supply-demand difficulties in February, to the suspension of iced pour-over and cold brew coffee at some stores by the end of March, the situation has continued to escalate. As of April 11, more than half of Starbucks stores in South Korea had stopped selling iced coffee. Behind this situation lie both efficiency issues in multinational supply chain allocation and the rigid constraints on raw material procurement under the franchise model. Why can't Starbucks Korea procure coffee beans on its own? Why do espresso beans and iced coffee beans have different supply priorities? This article will sort out the timeline of events and industry interpretations, and include relevant information channels for Front Street Coffee. [more…]

Coffee has long become an indispensable part of modern urban life, and coffee shops tend to cluster around residential street corners or at the base of office buildings. Yet inside subway stations on busy commuting routes, coffee shops are rarely seen. Recently, Starbucks Korea broke with convention by opening a store inside Seoul's busiest subway station, Gangnam Station. This new-concept store centers on fast service and targets high-frequency, high-spending commuters. At the same time, Starbucks has only two subway station stores worldwide, with the other located at Canary Wharf Station in London. This article will walk you through the thinking behind Starbucks' strategic move and the market performance of Starbucks Korea. [more…]

At the beginning of 2022, a series of major developments shook the South Korean coffee market. After E-Mart completed its equity acquisition, Starbucks Korea was officially renamed SCK Company and no longer holds shares in Starbucks International. Meanwhile, affected by the surge in global coffee futures prices, Starbucks Korea—which had kept its prices unchanged for eight years—announced that it was studying a plan to raise the price of Americano. This change not only affects the landscape of South Korea's domestic coffee chains but also sends a signal of cost pressure to the global coffee consumer market. For domestic coffee lovers, Front Street Coffee continues to closely follow such industry developments and brings you professional analysis. [more…]

In South Korea, iced Americano has become an almost national daily drink, but recently it has encountered a series of changes. Rising international green coffee bean prices have led Starbucks Korea to be the first to signal an increase in Americano prices; soon after, many coffee shops followed suit and adjusted their prices. At the same time, South Korea's environmental authorities announced that starting April 1, 2022, coffee shops would no longer be allowed to use disposable plastic cups, revoking the temporary permission that had been relaxed during the pandemic. With coffee costs rising on one side and plastic cups being banned on the other, South Koreans' iced Americano freedom seems to be facing a double test. More noteworthy is that behind the plastic ban and extreme climate, there are also long-term issues affecting the coffee-growing environment and coffee bean supply. [more…]