Due to High Inflation... Starbucks, Paris Baguette, and Others Gain Popularity with Discount Events

On the 22nd, at the Starbucks store in Yeouido IFC Mall, Yeongdeungpo-gu, Seoul, the 'Back to 1999' event began, selling Tall-sized Americano for 2,500 won from that day until the 24th, with customers lining up.
[Photo by Starbucks]

As high inflation continues across the board in food and beverages, dining out, and public utility fees, consumers are responding enthusiastically to events offering discounts on coffee and bread.

According to the coffee industry on the 26th, Starbucks Korea held a promotion from the 22nd to the 24th, offering a tall-sized Americano at 2,500 won for three hours each day from 2 PM to 5 PM. On the first day of the event, the sales volume of Americanos at participating stores nationwide increased by 228% compared to the same time the previous day.

On the second day of the event, the 23rd, from 2 PM to 5 PM, Americano sales at Starbucks stores nationwide rose by 274% compared to the 21st, which was a 15% increase over the first day of the event.

This Starbucks event was a consumer appreciation promotion celebrating the achievement of 10 million reward members. The price of 2,500 won is the same as when the first Starbucks store opened in Korea in 1999.

Starbucks stated that to avoid store congestion, the event was held during the relatively less busy hours of 2 PM to 5 PM on weekdays and was completed smoothly without major disruptions. To prevent excessive orders, the number of drinks per receipt was limited to four, and participation via drive-thru was restricted due to potential traffic congestion around drive-thru stores.

Nevertheless, long lines formed at stores nationwide during the event period, with waiting times reaching 30 to 50 minutes in some locations. Demand was especially high at stores located in office districts with many company employees.

Recently, SPC Group’s Paris Baguette has also seen a surge of consumers for its ‘Chak!’ bread promotion.

Chakhan Bread boasts ‘cost-effectiveness’ with generously sized bread filled abundantly. Items include ‘Wang Kkwabaegi Donut (recommended price 1,900 won)’, ‘Saengrim Bomb Donut (3 pieces, recommended price 3,900 won)’, and ‘Churros (recommended price 1,400 won)’.

According to Paris Baguette, the three types of Chakhan Bread received a hot response immediately after launch, recording an average daily sales volume of about 90,000 pieces. This means one piece was sold every second.

Riding on the popularity of Chakhan Bread, Paris Baguette will sell its own coffee brand, ‘Cafe Adagio Signature’, at some stores for 1,500 won until the 31st of next month.

An industry insider in food and beverage said, “Food and beverage companies are offering good products at more reasonable prices, receiving better-than-expected responses from consumers tired of high inflation,” adding, “This trend is expected to continue actively in the future.”