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Asia News Network
30-06-2025
- Business
- Asia News Network
Changes brewing: Global coffee chains struggle to adapt to Korea's cafe culture
June 30, 2025 SEOUL – Global coffee chains such as the US franchise Blue Bottle and Canada's Tim Hortons, are changing tack in Korea's cutthroat coffee market, where both appear to have muffed their attempts to localize their offerings. Blue Bottle, which entered Korea in 2019 touting its artisanal brewing rituals, has recently traded some of its signature slowness for speed. Its once-prized focus on customer interaction has lost some of its gravitas, now that it's available on local delivery apps like Baemin and Coupang Eats. Perks like size upgrades and app discounts only further blur the lines between craft and convenience. As of October last year, only five of its 17 locations offered delivery. That number has since doubled to 10. According to industry insiders, the shift risks diluting the brand's identity, though it seems a necessary concession to Korean consumer culture. 'Yet, in a market awash with cheap caffeine and fast service, its core values may be hard to maintain,' one insider said. While Blue Bottle's annual sales in Korea rose 17 percent on-year to 31.2 billion won ($22.6 million) last year, operating profit plunged to 200 million won, from 1.9 billion won the previous year and 2.7 billion won in 2021. The company also posted a net loss of 1.1 billion won, its first since entering the Korean market. Another notable entrant, Tim Hortons, which made its Korean debut in 2023, appears to be at a crossroads. In June, the chain shuttered its flagship store in Cheongna, Incheon, its first directly operated location to close. While speculation swirls around Tim Horton's financial struggles in Korea, the company cited a search for a more fitting location to reflect its Canadian roots. The backlash also stems from Tim Hortons' premium pricing strategy in Korea, where prices are 1.5 to 2 times higher than in Canada despite its reputation there for affordability and everyday value. For these newcomers, the hurdles are steeper in the face of fast-growing, budget-minded Korean chains like Mega Coffee, whose 2,000 won Americano delivers enough of a caffeine kick to stand up against Tim Hortons' 4,000 won and Blue Bottle's 5,900 won Americanos. This month, Tim Hortons launched a promotional campaign slashing prices on its signature Iced Capp by 60 percent and offering free Americano coupons to customers who purchased donuts, in a bid to reconnect with Korean consumers. When it comes to strategy, Starbucks, a dominant force in Korea's cafe scene, is an early mover in delivery, having launched the service in April last year. It continues to anchor customer loyalty by doubling down with expanded app rewards and discounts of up to 60 percent. 'Korean coffee consumers move fast and expect brands to keep pace,' said one industry official, urging global chains to stay agile and responsive to local demands. 'Striking the right balance between brand roots and local flavor is critical to success.' Korea's saturated and stratified coffee market indeed breeds stiff competition, in which cafe businesses at every tier are feeling the squeeze. According to Korea's National Tax Service, the number of coffee shops nationwide dipped to 95,337 in the first quarter, down 743 from a year earlier. It's the first recorded decline since the agency began tracking the figure in 2018.

Straits Times
27-06-2025
- Business
- Straits Times
Changes brewing: Global coffee chains struggle to adapt to South Korea's cafe culture
Starbucks continues to anchor customer loyalty by doubling down with expanded app rewards and discounts of up to 60 per cent. PHOTO: BLOOMBERG - Global coffee chains such as US franchise Blue Bottle and Canada's Tim Hortons are changing tack in South Korea's cut-throat coffee market, where both appear to have muffed their attempts to localise their offerings. Blue Bottle, which entered South Korea in 2019 touting its artisanal brewing rituals, has recently traded some of its signature slowness for speed. Its once-prized focus on customer interaction has lost some of its gravitas, now that it is available on local delivery apps like Baemin and Coupang Eats. Perks like size upgrades and app discounts only further blur the lines between craft and convenience. As at October 2024, only five of its 17 locations offered delivery. That number has since doubled to 10. According to industry insiders, the shift risks diluting the brand's identity, though it seems a necessary concession to Korean consumer culture. 'Yet, in a market awash with cheap caffeine and fast service, its core values may be hard to maintain,' one insider said. While Blue Bottle's annual sales in South Korea rose 17 percent year on year to 31.2 billion won (S$29.3 million) in 2024, operating profit plunged to 200 million won, from 1.9 billion won the previous year and 2.7 billion won in 2021. The company also posted a net loss of 1.1 billion won, its first since entering the Korean market. Another notable entrant, Tim Hortons, which made its Korean debut in 2023, appears to be at a crossroads. Earlier in June, the chain shuttered its flagship store in Cheongna, Incheon, its first directly operated location to close. While speculation swirls around its financial struggles in South Korea, the company cited a search for a more fitting location to better reflect its Canadian roots. The backlash also stems from Tim Hortons' premium pricing strategy in South Korea, where prices are 1.5 to two times higher than in Canada despite its reputation there for affordability and every day value. For these newcomers, the hurdles are steeper in the face of fast-growing, budget-minded Korean chains like Mega Coffee, whose 2,000 won Americano delivers enough of a caffeine kick to stand up against Tim Hortons' 4,000 won and Blue Bottle's 5,900 won Americanos. In June, Tim Hortons launched a promotional campaign slashing prices on its signature Iced Capp by 60 per cent and offering free Americano coupons to customers who purchased donuts, in a bid to reconnect with Korean consumers. When it comes to strategy, Starbucks, a dominant force in South Korea's cafe scene, is an early mover in delivery, having launched the service in April 2024. It continues to anchor customer loyalty by doubling down with expanded app rewards and discounts of up to 60 per cent. 'Korean coffee consumers move fast and expect brands to keep pace,' said one industry official, urging global chains to stay agile and responsive to local demands. 'Striking the right balance between brand roots and local flavour is critical to success.' South Korea's saturated and stratified coffee market indeed breeds stiff competition, in which cafe businesses at every tier are feeling the squeeze. According to the country's National Tax Service, the number of coffee shops nationwide dipped to 95,337 in the first quarter, down 743 from a year earlier. It is the first recorded decline since the agency began tracking the figure in 2018. THE KOREA HERALD/ ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.


Korea Herald
27-06-2025
- Business
- Korea Herald
Changes brewing: Global coffee chains struggle to adapt to Korea's cafe culture
Blue Bottle rethinks its slow-coffee roots; Tim Hortons slashes prices Global coffee chain such as US franchise Blue Bottle and Canada's Tim Hortons, are changing tack in Korea's cutthroat coffee market, where both appear to have muffed their attemps to localize their offerings. Blue Bottle, which entered Korea in 2019 touting its artisanal brewing rituals, has recently traded some of its signature slowness for speed. Its once-prized focus on customer interaction has lost some of its gravitas, now that it's available on local delivery apps like Baemin and Coupang Eats. Perks like size upgrades and app discounts only further blur the lines between craft and convenience. As of October last year, only five of its 17 locations offered delivery. That number has since doubled to 10. According to industry insiders, the shift risks diluting the brand's identity, though it seems a necessary concession to Korean cconsumer culture. 'Yet, in a market awash with cheap caffeine and fast service, its core values may be hard to maintain,' one insider said. While Blue Bottle's annual sales in Korea rose 17 percent on-year to 31.2 billion won ($22.6 million) last year, operating profit plunged to 200 million won, from 1.9 billion won the previous year and 2.7 billion won in 2021. The company also posted a net loss of 1.1 billion won, its first since entering the Korean market. Another notable entrant, Tim Hortons, which made its Korean debut in 2023, appears to be at a crossroads. In June, the chain shuttered its flagship store in Cheongna, Incheon, its first directly operated location to close. While speculation swirls around its financial struggles in Korea, the company cited a search for a more fitting location to better reflect its Canadian roots. The backlash also stems from Tim Hortons' premium pricing strategy in Korea, where prices are 1.5 to 2 times higher than in Canada despite its reputation there for affordability and everyday value. For these newcomers, the hurdles are steeper in the face of fast-growing, budget-minded Korean chains like Mega Coffee, whose 2,000-won Americano delivers enough of a caffeine kick to stand up against Tim Hortons' 4,000-won and Blue Bottle's 5,900-won Americanos. This month, Tim Hortons launched a promotional campaign slashing prices on its signature Iced Capp by 60 percent and offering free Americano coupons to customers who purchased donuts, in a bid to reconnect with Korean consumers. When it comes to strategy, Starbucks, a dominant force in Korea's cafe scene, is an early mover in delivery, having launched the service in April last year. It continues to anchor customer loyalty by doubling down with expanded app rewards and discounts of up to 60 percent. 'Korean coffee consumers move fast and expect brands to keep pace,' said one industry official, urging global chains to stay agile and responsive to local demands. 'Striking the right balance between brand roots and local flavor is critical to success.' Korea's saturated and stratified coffee market indeed breeds stiff competition, in which cafe businesses at every tier are feeling the squeeze. According to Korea's National Tax Service, the number of coffee shops nationwide dipped to 95,337 in the first quarter, down 743 from a year earlier. It's the first recorded decline since the agency began tracking the figure in 2018.


San Francisco Chronicle
17-06-2025
- Business
- San Francisco Chronicle
Blue Bottle Coffee workers are unionizing in the Bay Area
Staff at four Blue Bottle cafe locations in the East Bay are seeking to unionize, the first in California to join East Coast locations of the Bay Area-founded chain in forming a collective bargaining unit. Staff at Blue Bottle's Berkeley location and at three Oakland locations — in Old Oakland, on Piedmont Avenue and inside the old W.C Morse building on Broadway — are asking the company to voluntarily recognize the Blue Bottle Independent Union by Friday at noon to commence bargaining. According to the union an 'overwhelming majority' of workers at these locations signed union cards. In 2024, the Blue Bottle Independent Union first unionized the company's six locations in the greater Boston Area. The push follows recent unionization efforts at national coffee chains Peets and Starbucks locations in California and at Bay Area chain Highwire Coffee. The Bay Area's high cost of living and Blue Bottle's lack of healthcare benefits led the workers to seek unionization, said Alex Reyes, a Blue Bottle employee for the past 10 years currently working as a shift lead at the Berkeley location. 'We're juggling so many things, like hospitality and keeping customers safe, while management might be jumping from one cafe to another,' Reyes said. 'It's a tall ask.' Blue Bottle founder James Freeman launched the specialty coffee company in Oakland in 2002, growing to more than 70 U.S. cafes. Giant food conglomerate Nestle bought a majority stake in Blue Bottle in 2017. Reyes claimed there was a noticeable drop in how the company invested in its employees after this purchase, with what he sees as drops in the quality of staff training and product quality. A representative from Blue Bottle did not immediately respond to the Chronicle. Blue Bottle has taken progressive stances on issues such as paying coffee producers a fair price for their beans and, temporarily, doing away with single-use containers. Still, getting the company to recognize the union looks like an uphill battle, but Reyes believes there is support to be found among customers. 'We, workers, are the face of the company. We make the product and interact with people from behind the bar,' Reyes said. 'Support will be high when it spreads.'


Vancouver Sun
22-05-2025
- Business
- Vancouver Sun
Flying 12 hours in business class — an honest review of the $6000 experience
I recently flew 12 hours from Hong Kong to Vancouver on Cathay Pacific in Business Class . Let me preface this review by saying: any time you get to lie flat on a long-haul flight, it's a luxury. The lounges, service and in-air food are what truly set apart a memorable experience, especially for a frequent flyer. With a steep $6,000 price tag to go from HKG to YVR (or vice-versa), you're probably wondering: is it worth it ? I was, too, as it had been a few years since I'd been on a Cathay flight. I memorably flew with them for the first time in 2006, and was so blown away, I still have a paper dinner menu from that flight. Interest around international travel is up this year, as more and more Canadians opt to skip the U.S. The Hong Kong Tourism Board shared that Canadians' intent to travel to Hong Kong this year has increased by a whopping 30 per cent. The Asian metropolis has always been one of my favourite cities around the globe: a unique history, fabulous food and shopping, and a vibrant nightlife have kept me returning over the years. Plan your next getaway with Travel Time, featuring travel deals, destinations and gear. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Travel Time will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Read on for everything you need to know about Cathay Pacific's Business Class experience. My 2025 experience kicked off with a visit to the Cathay Pacific lounges – yes, there are multiple — at HKG. As their hometown airport, expectations are high – and certainly didn't disappoint compared to what we might be used to at YVR (our limited offerings include the rather un-premium Plaza Premium lounge, the fairly decent Air Canada Maple Leaf Lounge, as well as a smaller Cathay Pacific one, to name a few). My favourite HKG Cathay option was The Pier Business Class Lounge, which includes the airline's first-ever tea room with blends by Jing , as well as the iconic noodle bar. Both were excellent options, and a special shoutout goes to the baristas working the coffee cart: after several excursions to HKG over the years, I'm convinced this is the only quality latte at the entire airport (avoid this airport's Blue Bottle at all costs, which I typically love). Relaxation rooms, shower suites and work stations are also available here. Upon boarding, the lead flight attendant came over to introduce herself, give me a tour of the pod and offer a beverage: the non-alcoholic Cathay Delight, made of coconut milk, kiwi juice and fresh mint is always a win – but the Laurent-Perrier brut is also nice for some bubbly. Initially, I was a bit disappointed I didn't have one of the new Aria suites – currently only available on the London to Hong Kong route and expected to roll out on the Vancouver planes later this year – but the overall experience quickly made up for that. Despite the pod appearing a bit dated, I appreciated the amount of storage space. If you like to keep several items handy – for me, it's a laptop , AirPods , chargers , vitamins and skincare – you won't be fussed. As a frequent flier, I always look forward to a long-haul flight amenity kit. Cathay partnered with British-based Bamford, offering mini-sized versions of the brand's cooling gel , multi-purpose balm and pillow mist , leaning into a wellness theme. Initially, I wanted to see products from a more well-known luxury brand – but the products were quality and completely elevated the overnight experience. The leather case was a nice touch, too, and easy to reuse as a makeup bag or for smaller toiletries. In-flight service began with an always-appreciated hot towel, warm nuts and a pretty swanky meal service for being 30,000 feet above the ground. Among the many options, I opted for an appetizer and main that are tied to two well-known Hong Kong Michelin star restaurants: the chilled abalone and cucumber with black vinegar from Duddell's and the pan-seared Chilean sea bass with saffron sauce from Louise , which is my all-time favourite restaurant in Hong Kong. The Duddell's abalone certainly lived up to the hype, and is arguably one of the best items I've enjoyed in the sky on any flight. Louise's sea bass was decent, however, a tad bland, and not quite to par with what I've come to know and love from the restaurant itself (which I highly recommend on a visit to Hong Kong). Regardless, it was still an elevated choice considering – and I would get it again, but maybe add a little salt. Cheese, Häagen-Dazs ice cream or fresh fruit followed, for some simple but solid dessert options (although the ice cream was very frozen – beware!). Dining has a leisurely vibe in-air on Cathay Pacific, which is ideal for someone who wants to immerse themselves in the entire multi-course experience. For those looking to get in a full night's sleep or get some work done, however, be mindful of the time to get dishes cleared. I'm a fast eater, so I opted to use the call button to speed up the process. Where the menu truly stood out was on the all-day options, which could be requested at any time during the flight. Noodles (a popular choice) and a burger with fries are on the docket, both of which were excellent. Key detail: the fries were delicious and not soggy. For those looking to indulge in a drink, the cocktail and wine lists were extensive, edging out Canadian competitors. The Chateau Lynch-Bages from Pauillac is a tried and true choice, but for those feeling experimental, Chinese wine – not readily available in North America – is available. On the non-alcoholic front, the Hong Kong-style milk tea appeared to be a popular choice with those on my flight. Wi-Fi on the flight was solid, at least for the time I was using it. For the movie watchers, Cathay's entertainment system offered a comprehensive cross-section of choice; however, the screen was a bit slow to react to my selection, something I assume will be updated in the new Aria suites. I opted to go with some relaxing music, which was a nice alternative. Following dinner and some work, it was time to get some shut-eye. Cathay provides a hotel-style pillow, 400-thread count cotton duvet and perhaps the most important details for a high-quality snooze — a mattress pad and eye mask. Combined with the Bamford pillow spray , I got in a full eight hours with zero interruption. The sleep was so solid, in fact, I nearly dozed through breakfast. I'm glad I didn't, though, as the pre-landing meal was also impressive. In-flight breakfasts are usually nothing to write home about, however, there were a few nice touches here, like warmed cherry tomatoes, a shockingly decent croissant with butter and jam and – small detail – a tea bag dish (oversteeped tea is a no-no). Congee, a traditional rice porridge found in South and East Asia, was also available and looked delicious. Guests were invited to make a chocolate selection from a box, a nice touch before landing. After 12 hours in the air, it was time to land in my hometown of Vancouver. Overall, I was rested and relaxed, which is the top marker of success on any long-haul business class flight. Despite some marginal room for improvement — which I believe will be corrected with the new Aria suites — Cathay proved they offer a solid and competitive product in the aviation space. The experience is worth it — but not at full price. My suggestion is to keep a flexible travel schedule and use Google flights to set alerts about price drops or leverage the points and miles within the Oneworld alliance system to fly free. Beyond that, stay tuned for the Aria suites to launch on the Vancouver route later this year to get the most value out of your flight. Hoping to score a great deal on your next hotel? Check out for exclusive savings on over one million hotels worldwide. Sign up for free here . Shopping Essentials , a category written by research-obsessed shopping fanatics, is now on Canoe . 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