"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 so-called "Tank Day" controversy involving Starbucks Korea, the landscape of payment amounts in the domestic coffee franchise market is undergoing changes. As consumers have begun to leave Starbucks in the wake of the controversy, rival brands are experiencing a windfall.

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 Payment from May to July Exceeds Starbucks by Approximately 30 Billion KRW

According to Mobile Index from AI data company IGAWorks on August 4th, the estimated payment amount for Twosome Place last month was 117.05 billion won, about 7 billion won higher than Starbucks Korea's 110.06 billion won. Twosome Place has outpaced Starbucks for three consecutive months since May.

On a monthly basis, May was the first time in three years that Twosome Place overtook Starbucks. That month, Twosome Place reached 123.65 billion won, surpassing Starbucks's 121.19 billion won by a slight margin. In June, Twosome Place recorded 120.68 billion won, widening the gap with Starbucks, which posted 100.39 billion won, to around 20 billion won.

The cumulative payment amount from May to July totaled 361.38 billion won for Twosome Place, compared to 331.64 billion won for Starbucks—representing a difference approaching 30 billion won.

"Desk Tap!"... The "Tank Day" Scandal Hits Starbucks

The controversy began with a Starbucks Korea promotional event held on May 18. The name "Tank Day" and the use of phrases like "Desk Tap!" in marketing materials sparked suspicions that the campaign was reminiscent of the May 18 Gwangju Democratization Movement and the death of Park Jong-chul due to torture.

The fact that the event was held on the anniversary of May 18 further fueled the controversy, and criticism spread rapidly, especially on social media. Some online users escalated the issue by sharing mocking content that borrowed similar expressions.

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

As the controversy intensified, Starbucks Korea issued an immediate apology and canceled the event. At the group level, Shinsegae Group also released an official apology and took decisive action by replacing management. In addition, in June, Starbucks Korea took the unprecedented step of closing all stores nationwide early for one day to conduct historical awareness training for all employees—marking the first time this has happened since the company's entry into the Korean market.

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

In the immediate aftermath of the controversy, both weekly payment amounts and the number of new app installations related to Starbucks decreased. However, last month, Starbucks saw its payment amount rebound by 9.6% compared to the previous month, while Twosome Place saw a 3.0% decrease, narrowing the gap between the two brands. As such, some observers suggest it remains to be seen whether Twosome Place can maintain its lead or whether Starbucks will reclaim the top spot in payment amounts.

MegaMGC Coffee Approaches 100 Billion KRW, Closing in on Rivals

Following Starbucks and Twosome Place, MegaMGC Coffee recorded a payment amount of 98.21 billion won last month, nearing the 100 billion won mark. This represents a 1.6% increase from the previous month. Paikdabang reported a payment amount of 24.5 billion won, maintaining a similar level to the previous month.

According to industry experts, while the momentum of Twosome Place and value-oriented coffee brands was already ongoing, the recent controversy has shaken trust in the Starbucks brand, accelerating changes in the market's competitive dynamics. Some forecasts suggest that changes in market share trends going forward will depend on whether Starbucks can recover.

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