Several South Korean coffee franchise chains are raising prices on low-cost coffee products starting this month [1].
These increases signal a shift in the budget coffee sector, as brands that traditionally competed on low prices now struggle to absorb rising operational costs. The trend reflects broader economic pressures affecting the food and beverage industry in South Korea.
Mega MGC Coffee will increase the price of each of its low-price coffee products by 200 won [1]. This change takes effect June 19. For example, the price of Hal Mega Coffee will rise from 2,100 won to 2,300 won [1]. Similarly, King Hal Mega Coffee will increase from 3,200 won to 3,400 won [1].
Other budget brands have already implemented similar measures. The Venti increased menu prices for most items, excluding the Americano, by 100 won to 500 won beginning May 29 [1].
The price hikes extend to packaged goods as well. Coffee Bean raised the price of its vanilla latte stick coffee by up to 8.1% [1]. Ediya Coffee also increased prices for its stick coffee, and coffee-mix products, with hikes ranging from 4.3% to 15.2% [1].
Industry data indicates these adjustments are driven by higher raw-material costs and volatile exchange rates [1, 2]. These factors have increased the cost of importing coffee beans and other essential supplies, forcing franchises to pass the expenses to consumers.
“Mega MGC Coffee will increase the price of each of its low-price coffee products by 200 won”
The simultaneous price hikes across multiple budget-tier brands suggest that the 'low-cost' model in South Korea is facing a sustainability crisis. When the most affordable options in the market raise prices due to global macroeconomic factors like exchange rates, it often indicates a baseline increase in the cost of living for the general population.
