"The Biggest Beneficiary of High Inflation"... Mega MGC Breaks 400 Million Won Per Store with 1,500 Won Coffee

41.287 Million Won per Store Last Year, Up 6.3% Year-on-Year

Average Sales per Pyeong Hit 23.69 Million Won... Seoul Leads the Pack

Mega MGC Coffee, a low-cost coffee brand, surpassed 400 million won in average annual sales per franchise store for the first time last year. As consumers continue to seek out low-priced coffee amid prolonged high inflation, Mega MGC Coffee has grown to over 4,000 stores in its tenth year of business, sustaining its growth trajectory.

According to the Fair Trade Commission's franchise business reports on September 8, the average annual sales per franchise owner at Mega MGC Coffee in 2025 reached 412.87 million won, up 6.3% year-on-year. In terms of hot Americano sales (priced at 1,500 won per cup), this equates to 275,250 cups sold per store annually or about 755 cups per day. Average annual sales per 3.3㎡ (one pyeong) at a Mega MGC Coffee franchise reached 23.69 million won, up 5.7% from a year earlier. Over the past five years, average sales per store rose by 25.5%, while sales per pyeong increased by 17.0%.

Stores of domestic low-cost coffee brands located in a building in Jongno-gu, Seoul. From the left, Mega MGC Coffee, Compose Coffee, and Paik’s Coffee. Photo by Huh Younghan

A Mega MGC Coffee representative stated, "The trend of rational consumption in this high-inflation era has played a significant role." He added, "Differentiated seasonal menus that reflect current trends, as well as collaborations and partnership marketing based on intellectual property, created synergy that resulted in attracting new consumers and encouraging repeat visits."

It is unusual for a franchise in Korea’s coffee sector to average more than 400 million won in sales per store. As of 2024, only Twosome Place outperformed Mega MGC Coffee, reporting an average sales figure of 571.73 million won per store. However, a hot Americano at Twosome Place costs 4,700 won—more than three times the price at Mega MGC Coffee. Adjusting for price, annual hot Americano sales at a single Twosome Place location come to about 120,000 cups, less than half of Mega MGC Coffee's volume. Twosome Place’s average sales per pyeong stood at 10.01 million won in 2024.

Mega MGC Coffee’s competitors, Paik’s Coffee and Compose Coffee, posted average annual sales per franchise of 324.49 million won and 271.88 million won, respectively, in 2024. Their average sales per pyeong were 20.52 million won and 18.03 million won, respectively. While the overall growth of low-cost coffee brands was evident, both Paik’s Coffee and Compose Coffee lagged Mega MGC Coffee in sales growth. In some cases, their sales per store outperformed famous tteokbokki or chicken brands, whose average product prices are higher than coffee.

By region, Seoul—where 23.5% of all franchises are located, second only to Gyeonggi Province at 33.4%—ranked the highest in both sales per store and sales per pyeong. The average sales at Mega MGC Coffee franchises in Seoul reached 461.87 million won per store, nearly 50 million won more than the overall average. Sales per pyeong in Seoul also reached 28.77 million won, 5.08 million won higher than the overall average. This trend is attributed to higher demand for affordable coffee among office workers and students in Seoul. Gyeongnam Province posted the lowest average per-store sales (318.89 million won) and sales per pyeong (18.97 million won).

Since opening its first store in 2015, Mega MGC Coffee has leveraged the trend toward low-priced coffee amid prolonged inflation, rapidly expanding its stores nationwide. According to the company, it operated 4,016 stores nationwide at the end of last year, of which 98.8% (3,969 stores) were franchises. Public disclosure documents show the number of Mega MGC Coffee stores jumped from 2,709 in 2022 to 3,360 in 2024. With about 20 new stores opening each week this year, the brand is expected to surpass 4,500 stores in the second half of the year.

A Mega MGC Coffee representative explained, "When expanding our stores, we carefully analyze commercial districts to minimize the impact on the business rights of existing stores. The primary criterion is that both existing and new locations can maintain stable profits."

Amid polarization in the coffee market between premium and ultra-budget brands, Mega MGC Coffee is scaling up as a representative low-cost brand. It has strengthened its presence at prime locations with high foot traffic and in residential and office areas, while actively opening compact take-out shops nationwide. In addition to low-priced coffee, the company recently introduced ready-to-eat meal options for consumption with coffee and capitalized on intellectual property such as K-pop and character collaborations. As a result, its operator MGC Global recorded annual sales of 646.93592 billion won and an operating profit of 111.4 billion won last year, marking increases of 30.4% and 3.5%, respectively, compared to the previous year.

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