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Shifting Tides in Coffee Chains: Consumers Choose Alternatives to Starbucks

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Following the 'Tank Day' controversy at Starbucks Korea, the use of mobile applications (apps) from other coffee chains such as Twosome Place, Ediya Coffee, and Paik’s Coffee has increased, drawing attention to potential shifts in the café market landscape. This is due to the ongoing boycott, which has led government ministries, local governments, public institutions, and private companies to halt purchases of Starbucks gift certificates that were commonly used as gifts. With the busy summer season approaching—a time when sales of cold beverages typically rise—industry attention is focused on consumer choices.



Yonhap News Agency

Yonhap News Agency

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Immediately After the Controversy, Starbucks App Users Increase by 20%

Trends in Starbucks App User Numbers (Unit: Number of Users, Source: Mobile Index) *Based on Daily Active Users (DAU)
May 18 'Tank Day' Controversy Day
1,116,695users
May 19Peak User Surge
1,230,278users
May 23Sharp Decline Significant Drop in Users
986,422users


According to data from Mobile Index, the analytics solution of IGAWorks, Starbucks' app daily active users (DAU) reached 1,230,278 on May 19, the day after the controversy, marking the highest figure for May. The average DAU from May 1 to 23 was 1,023,656. On May 19, the number of users accessing the Starbucks app was 20% higher than the monthly average.


For the six days following the day of the incident, the average daily DAU was 1,052,489, slightly above the monthly average (based on May 1–23). The increase in app usage is attributed to greater interest in Starbucks, as users logged in to check the company’s apology statement or to view the balance on their mobile cards.


Chairman Chung Yongjin Issues Public Apology... Significant Sales Impact

Chong Yongjin, Chairman of Shinsegae Group, is making a public apology regarding the 'Tank Day' controversy of Starbucks Korea on the 26th at Chosun Palace Hotel in Gangnam-gu, Seoul. 2026.5.26 Photo by Kang Jin-Hyung

Chong Yongjin, Chairman of Shinsegae Group, is making a public apology regarding the 'Tank Day' controversy of Starbucks Korea on the 26th at Chosun Palace Hotel in Gangnam-gu, Seoul. 2026.5.26 Photo by Kang Jin-Hyung

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Previously, on May 18, Starbucks Korea posted an advertisement for its tumbler, describing it as the "Tank Series with ample capacity and a convenient handle." The promotional material included phrases such as "Tank Day" and "A bang on your desk!" and featured the date "5/18" above and below the words "Tank Day." Subsequently, online communities and social networking services (SNS) saw a surge in criticism, arguing that these expressions disparaged the May 18 Democratic Uprising and the 1987 death of student activist Park Jongcheol under police torture.


Chung Yongjin, Chairman of Shinsegae Group, immediately dismissed Starbucks Korea CEO Son Jeonghyeon and the responsible executive on the day the controversy broke. On May 19, Chairman Chung issued a public apology, stating, "We have deeply hurt the spirits and families of those lost in the May 18 Democratic Uprising, as well as the people of Korea. On behalf of the group, I sincerely bow my head in apology." SCK Company, the operator of Starbucks Korea, posted the apology on the main page of the Starbucks app under the Starbucks Korea name.


Chairman Chung held a press conference that day, stating, "As Chairman of Shinsegae, I sincerely bow my head and ask for forgiveness from the bereaved families of the May 18 victims, the family of Park Jongcheol, the citizens of Gwangju, and the people of Korea who have suffered deep wounds and disappointment as a result of this incident."


Due to this controversy, Starbucks has suffered significant sales losses. In fact, there is a growing likelihood that customers will switch to other coffee chains. During a Q&A session held after the press conference, Shinsegae Group acknowledged, "It is true that there has been a considerable decline in sales from an operational standpoint."


Increased App Usage for Twosome, Ediya, and Paik’s Coffee

Changes in Coffee App Users
Competing Brand Apps Diverge Following Starbucks 'Tank Day' Controversy
For the six days after the May 18 controversy, DAU for Twosome Place, Ediya, and Paik’s Coffee apps increased, while MegaMGC Coffee saw a slight decrease.
TWOSOME
+5.6%
DAU Growth Rate
From 115,189 to 121,619 users
Increase
EDIYA
+4%
DAU Growth Rate
Increased by more than 4% during the same period
Increase
PAIK'S COFFEE
+30%
DAU Growth Rate
Marketing effects (May 21–22) also contributed
Increase
MEGA MGC
-2.8%
DAU Decline Rate
From 461,409 to 448,575 users
Decrease


In fact, after the controversy, app usage at some coffee chains such as Twosome Place, Ediya Coffee, and Paik’s Coffee surpassed the overall May average. For Twosome Place’s app, Twosome Heart, the average daily DAU from May 1 to 23 was 115,189, which rose by 5.6% to an average of 121,619 during the six days following the controversy. Paik’s Coffee saw its average DAU increase by more than 30% during the same period, though this was largely attributed to the effects of marketing campaigns held on May 21–22. Ediya Coffee also experienced a DAU increase of over 4% during the period.


Among the five major coffee chains, MegaMGC Coffee, which has the largest number of app users, recorded an average daily DAU of 461,409 from May 1 to 23. However, the average DAU during the six days following the controversy dropped slightly to 448,575.


Previously ‘Most Popular Gift’, Starbucks Vouchers Drop from 1st to 7th Place

KakaoTalk Gift Popularity Rankings Shift

Once No.1, Starbucks Voucher
Drops to 7th Overall

As of 10 a.m. on the 26th, Baedal Minjok gift certificates have taken the top two spots in the gift rankings, causing a major reshuffle.

Changes in Overall Gift Popularity Rankings

1

Baedal Minjok Gift CertificateNo. 1 Most Popular Gift

2

Baedal Minjok Gift CertificateNo. 2 Most Popular Gift

7

Starbucks VoucherDropped from 1st to 7th

1stCafé Gift Certificate

MegaMGC Coffee
2ndCafé Gift Certificate

Starbucks
3rdCafé Gift Certificate

Twosome Place

Among the top 10 café gift certificates, 5 were Starbucks products, 3 were from Twosome Place, and 2 were from MegaMGC Coffee. While Starbucks still held a plurality, the ranking of its main product dropped quickly.

Graphic by ChatGPT



Even the Starbucks voucher, which had long been considered one of the most popular gifts on KakaoTalk Gift, has seen its ranking drop rapidly. As of 10 a.m. on the 26th, the Starbucks voucher, formerly ranked first, had fallen to 7th overall. Baedal Minjok gift certificates took the top two spots. In the café gift certificate category, MegaMGC Coffee claimed the top spot, pushing Starbucks to 2nd place. Twosome Place ranked 3rd. Among the top 10 café gift certificates, Starbucks accounted for five, Twosome Place for three, and MegaMGC Coffee for two.


An official from the food service industry commented, "At present, the increase in app usage may be influenced by customer demand for cold beverages, but although there hasn’t yet been a clearly noticeable shift in customer base, we expect gradual changes depending on how the situation develops."


Amid the spread of the boycott movement, calls to change Starbucks’ refund policy have grown louder. According to SCK Company’s 2023 audit report, prepaid income amounted to 427.5 billion won. Prepaid income includes pre-loaded card balances and unused mobile coupons. SCK Company’s prepaid income has steadily increased from 298.3 billion won in 2022 to 344 billion won in 2023, and 395.1 billion won in 2024. However, under Starbucks’ policy, to receive a refund on a charged prepaid card, customers must use at least 60% of the total amount after the most recent top-up.


Regarding this issue, Shinsegae Group stated, "We want to make improvements in line with customer preferences. Since there are legal requirements (such as Fair Trade Commission agreements), we are also consulting with relevant government departments. When customers request a refund at a store, it will also require system changes," indicating their willingness to respond.

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