Despite Starbucks' "Store Shutdown" After "Tank Day" Controversy, 20 Billion Won in Transactions Disappear

Sharp Drop in Card Transactions and App Users

"Tank Day" Controversy Fallout Continues

On the 22nd of last month, the lights were off at a Starbucks store in downtown Seoul. On that day, Starbucks Korea simultaneously closed all its stores nationwide earlier than usual. This was to take full responsibility for the marketing controversy that occurred last month and to conduct company-wide training to enhance employees' sense of history and social awareness. Photo by Yonhap News.

The aftermath of the so-called "Tank Day" event controversy at Starbucks Korea is intensifying. Last month, the estimated credit and debit card transaction amount dropped by over 20 billion won compared to the previous month, and the number of monthly app users also decreased by approximately 1.13 million within a month—quantitative evidence of the controversy's impact. Despite apologies and subsequent measures, consumer backlash continues.

Card Payments in June at 100.4 Billion Won... The Lowest Monthly Figure This Year

According to Mobile Index by AI data tech company IGAWorks on July 3, Starbucks’ estimated credit and debit card transaction amount for June was tallied at 100.39 billion won.

This figure is about 20.8 billion won lower than the 121.19 billion won in May. Not only is this the lowest monthly amount this year, but it is also the lowest in the last eight months since November of last year.

On the 22nd of last month, employees were tidying up a Starbucks store in downtown Seoul to close early at 3 p.m. Photo by Yonhap News.

Starbucks’ monthly transaction amounts have fluctuated since recording 147.4 billion won in November last year, but the decline has accelerated since May. In particular, June’s transaction figure is about 33.9 billion won less than the 134.3 billion won recorded in April this year.

App Users Down by 1.13 Million... Market Share Falls to 42.3%

The number of Starbucks app users also fell sharply. Monthly active users of the Starbucks app dropped from 8,190,191 in May to 7,060,541 in June—a decrease of 1,129,650 users. This represents a decline of about 13.8% in just one month.

Market share in the food & beverage and membership app sector also fell by more than 5 percentage points during the same period, from 47.7% to 42.3%. This is interpreted as a sign that the loyal customer base is being shaken.

However, it should be noted that the transaction amounts cited here are estimates based on domestic credit and debit card payments, and do not include payments made via corporate account transfers, cash, gift certificates, simple payment methods, or in-app transactions.

"Slap on the Desk!"... Starbucks "Tank Day" Controversy

The controversy originated from a Starbucks promotion held on May 18. The event’s name, "Tank Day," along with promotional phrases such as "slap on the desk," prompted suspicions that it was reminiscent of the May 18 Democratization Movement and the death of Park Jongcheol under torture.

Controversial Starbucks Promotion Event Phrase. Screenshot from Starbucks Official Website

The controversy grew especially because the event date coincided with the May 18 anniversary, and criticism rapidly spread, particularly on social media. Some netizens even shared satirical content using similar expressions, further amplifying the issue.

CEO Replacement, Company-Wide Training... Aftershocks Despite Response

As the controversy escalated, Starbucks Korea immediately issued an apology and halted the event, and Shinsegae Group responded with an official apology and replaced the management team.

In addition, last month, the company took the unprecedented step of closing all stores nationwide early to conduct historical awareness training for all employees. This was the first such measure since Starbucks entered the Korean market.

The lights were off at a Starbucks store in downtown Seoul on the 22nd of last month. Photo by Yonhap News

The industry is noting that this incident is affecting not only short-term sales but also brand trust. Analysts warn that if the loss of loyal customers continues beyond temporary sales declines, mid- to long-term damage will be unavoidable. On the other hand, some point out that, given the proactive apologies and organizational reforms, consumption may gradually recover over time.

This content was produced with the assistance of AI translation services.