[I Want to Start a Business Too] "Overcoming COVID-19 Fatigue with 1 Liter of Coffee"... The Cost-Effective Large Volume 'The Liter'

Photo by The Liter

[Asia Economy Reporter Moon Hyewon] There is a coffee specialty store that leads the trend of large-capacity coffee by introducing the first 1-liter (L) size coffee and beverages for all menu items in Korea. The Liter has been solidifying its position as a nationwide coffee brand by opening its 100th store in 2017, 200th store in 2018, 300th store last year, and as of July this year, the 400th store, starting with the Busan National University branch in 2015.

The secret to The Liter’s steady growth lies in its logistics foundation. It has established a distribution company system that stably supplies beverage ingredients, successfully reducing ingredient costs and providing products to franchise stores at reasonable prices. This is a differentiated approach from existing franchise coffee shops that operate by entrusting beverage ingredient distribution to large corporations.

Instead of increasing the headquarters’ profits, the management policy focused on coexistence with franchisees is also cited as a key success factor. When expanding the franchise business, store openings are conducted based on the principle of protecting the longest-distance commercial area within the region, supporting franchise stores to achieve stable sales within their jurisdictional commercial area.

Continuous menu development is the driving force behind nationwide sales growth. In particular, the ‘Franchisee Coexistence Event,’ which provides some beverage ingredients including promotional materials free of charge when launching new menu items, has become The Liter’s representative win-win promotion.

The Liter is also striving to differentiate itself from general large coffee franchises by using specialty beans. Specialty coffee refers to high-quality coffee that scores 80 points or higher after evaluation by the Specialty Coffee Association of America, considering geography, climate, production area, and other factors.

The Liter’s main color is passionate and active red. The Liter explains that seeing red when feeling lethargic or depressed can boost the body’s vitality and energy. The Liter’s philosophy is to be responsible for consumers’ vitality and energy.

The store interior uses cozy natural wood and antique brick materials to create a comfortable resting space in the city.

The startup cost is expected to be around 53 million KRW when combining franchise fees, training fees, equipment, and interior costs.

Kim Daehwan, CEO of The Liter, said, “Because we have to fill the product in the largest cup, we pay more attention to the quality of the beverage, that is, the taste,” adding, “We are focusing on R&D (research and development) to provide good coffee at a reasonable price.”