"Thanks to Consumers Turning Away, Twosome Place Enjoys a Boost as Customers Flock Away from Starbucks"

Coffee Market Shaken After 'Starbucks Scandal'
Twosome Place Leads in Transaction Volumes for Three Consecutive Months

Following the controversy surrounding Starbucks Korea’s so-called “Tank Day” event, the competitive landscape of payment volumes in the domestic coffee franchise market has shifted. As consumer defections continue in the wake of the incident, rival brands are reaping the benefits.

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

Twosome Place’s cumulative payments from May to July exceed Starbucks by about 30 billion won

According to Mobile Index, operated by AI data firm IGAWorks, the estimated payment volume at Twosome Place last month was 117.05 billion won, putting it ahead of Starbucks (110.06 billion won) by about 7 billion won. Twosome Place has outpaced Starbucks for three consecutive months since May.

It was only this past May, within the last three years, that Twosome Place surpassed Starbucks in monthly figures for the first time. At that time, Twosome Place posted 123.65 billion won in payments, narrowly surpassing Starbucks at 121.19 billion won. In June, Twosome Place’s total was 120.68 billion won, widening the gap with Starbucks (100.39 billion won) to about 20 billion won.

From May to July, the cumulative payment volume for Twosome Place was 361.38 billion won, versus Starbucks’ 331.64 billion won, displaying an almost 30 billion won difference.

"Desk Thump!"... Starbucks faces backlash from "Tank Day" scandal

The controversy began with a promotional event by Starbucks held on May 18. The event was dubbed “Tank Day,” and promotional phrases including “Desk Thump” provoked allegations that it referenced the May 18 Democratization Movement as well as the Park Jongchul Torture Death Incident.

The fact that the event date coincided with the anniversary of the May 18 Democratization Movement further fueled the controversy, while strong backlash quickly spread on social media. Some netizens even shared mocking content using related expressions, further intensifying the debate.

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As the controversy grew, Starbucks Korea promptly issued an apology and suspended the event, while Shinsegae Group, its parent company, delivered an official apology and made a bold move to replace senior management. In June, the company implemented the unprecedented step of closing all stores nationwide earlier than usual to provide historical awareness training to all employees. This marked the first time such a measure had been taken since Starbucks entered the Korean market.

On June 22, the lights were off at a Starbucks store in downtown Seoul. Photo by Yonhap News

Immediately after the controversy, Starbucks saw declines in both its weekly payment volume and new app installations. However, last month, Starbucks’ payment volume increased by 9.6% from the previous month, while Twosome Place’s decreased by 3.0%, narrowing the gap between the two companies. As a result, some observers believe it remains to be seen whether Twosome Place will continue to hold the lead or if Starbucks will reclaim the top spot in payment volume.

Mega MGC Coffee closes the gap, with monthly payments nearing 100 billion won

Last month, Mega MGC Coffee ranked just behind Starbucks and Twosome Place, with a payment volume of 98.21 billion won, coming close to the 100 billion won mark. This figure represents a 1.6% increase over the previous month. Paik’s Coffee’s payment volume was 24.5 billion won, remaining at a similar level to the prior month.

Industry insiders note that growth at both Twosome Place and low-priced coffee brands had already been underway, but the recent controversy undermined trust in the Starbucks brand, accelerating changes to the competitive landscape. There are also projections that market share trends may shift again, depending on whether Starbucks can regain its footing moving forward.

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