Americano Priced at 2,500 Won for In-Store Use
Officials Say "Discount Applies Only for Takeout"
Recent Controversy Over Advertising Costs Passed to Franchise Owners
The polarization of the domestic coffee market has become more pronounced due to changes in consumer trends. Amid this, Compose Coffee, a coffee franchise popular for its cost-effective coffee, has sparked controversy after it was revealed that they charge an additional 1,000 KRW per drink when customers use the store.
On the 28th, a post expressing dissatisfaction with Compose Coffee's pricing policy was uploaded on an online community. The author of the post pointed out that Compose Coffee charges an extra 1,000 KRW per cup when ordering drinks for in-store consumption. For example, when ordering an Americano, customers only pay 1,500 KRW for pickup, but when drinking in-store, an additional 1,000 KRW is charged, making it 2,500 KRW.
The polarization phenomenon in the domestic coffee market has become more pronounced due to changes in consumer trends. Amid this, Compose Coffee, a coffee franchise popular for its cost-effective coffee, has sparked controversy after it was revealed that an additional 1,000 KRW was charged per beverage when using their stores. [Photo by Compose Coffee website]
In fact, on delivery apps such as Baedal Minjok, Compose Coffee's Americano is priced 500 KRW higher, with delivery fees charged separately. As the controversy spread, Compose Coffee explained that the in-store price is the original price, and takeout orders receive a 1,000 KRW discount. A Compose Coffee representative stated, "The in-store price is not more expensive; rather, all drinks are discounted by 1,000 KRW for takeout," adding, "Since most sales are takeout, some franchise owners apply the same price for in-store consumption." They further explained, "We leave it to the discretion of franchise owners considering each store's condition, but basically recommend following the headquarters' policy."
"A Shell Game Price" vs. "Still Cheaper Than Other Stores" - Netizens Divided
. For other low-cost brand franchises such as Mega MGC Coffee and Paik's Coffee, which are competitors of Compose Coffee, the prices for in-store use and pickup are mostly the same. Mid-range brands like Ediya Coffee also do not differentiate prices between in-store and pickup. [Photo by Hyunmin Kim kimhyun81@]
Compose Coffee raised the prices of some drinks by 100 to 500 KRW in April this year. Additionally, membership benefits were reduced starting in May. Previously, customers received a 1,500 KRW discount coupon after purchasing seven drinks, but from May 1st, they must buy ten drinks to receive the coupon. Competing low-cost franchise brands like Mega MGC Coffee and Paik’s Coffee generally have the same prices for in-store and pickup orders. Mid-range brands such as Ediya Coffee also do not differentiate prices between in-store and pickup.
However, since consumers are accustomed to the Americano price being 1,500 KRW, confusion is inevitable, leading to controversy. Netizens have mixed opinions about Compose Coffee's pricing policy. Some commented, "Then they should just advertise it as 2,500 KRW from the start," "It feels deceptive to lure customers with a shell game price," and "Using celebrity endorsements harms both franchise owners and customers due to price hikes."
On the other hand, some defended the dual pricing policy, saying, "They are selling takeout cheaper, so why think otherwise?" "Even paying 1,000 KRW more, it's still cheaper than other stores," and "I've seen customers order a coffee and chat for 2-3 hours, pumping syrup eight times." Meanwhile, Compose Coffee entered the market in 2014 boasting a 'cost-effective' Americano priced at 1,500 KRW per cup and currently has 2,414 franchise stores nationwide. Recently, controversy arose when 2 billion KRW out of the 6 billion KRW advertising cost for BTS member V was passed on to franchise owners.
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