"Starting a Chicken Restaurant Possible with Half the Money"…A Hot Startup Item Among the 3040 Generation

'Study Cafe' Startup Boom
A 61-Fold Surge in Less Than 10 Years
Fewer Regulations Than Opening a Reading Room
Startup Costs Are Half Those of Franchise Cafes

Study cafe stock photo. Provided by 'Jaksim'

Study cafes are rapidly emerging as a new startup item as they gain popularity as a low-capital business venture. Unmanned study cafes, in particular, have a low entry barrier since they do not require separate management personnel, making them suitable for novice entrepreneurs without business experience, while also attracting steady demand from the 10s and 30s age groups.

According to KB Kookmin Card on the 6th, the number of study cafe franchises increased from 112 in 2015 to 6,944 as of last October. This is a 61-fold surge in less than 10 years. It appears that the saturated markets of chicken restaurants and coffee shops have driven entrepreneurs toward the high-demand study cafe market.

Study cafes are popular due to their relatively low startup costs. To open a typical 165㎡ study cafe franchise in Seoul, it costs about 130 million KRW on average, including a franchise fee (10 million KRW). This is less than half the startup cost of a similarly sized franchise cafe (about 300 million KRW). Additionally, the unmanned operation system can minimize the burden of starting a business. The top domestic study cafe franchise, Jakshim, has introduced a self-developed kiosk and remote management system to reduce labor costs and maximize operational efficiency.

As word spreads about the low costs, recently, people in their 30s and 40s have been flocking to start study cafes. According to an analysis by Kookmin Bank on the age distribution of study cafe franchise owners, 35% are in their 40s and 16% in their 30s. At Jakshim, the proportion of franchise owners in their 30s and 40s, which was 10% five years ago, more than doubled to 21% last year.

A study cafe in Noryangjin, Dongjak-gu, Seoul. Photo by Hyunmin Kim

Low levels of regulation are also cited as a factor in their popularity. Study cafes are freer from regulations compared to similar facilities like reading rooms. To obtain a reading room permit, one must secure an area of at least 120㎡ in Seoul and 90㎡ in Incheon and Gyeonggi. The building must not house harmful businesses, and male and female spaces must be separated. In contrast, study cafes are only required to have spaces such as a lounge in addition to the study room.

The ability to offer diverse spaces is another merit. Study cafes serve as reading rooms, tutoring rooms, and even shared office spaces. While shared office contracts require a minimum period of six months, study cafes have no usage period restrictions. As a result, the user age range of study cafes is expanding. Besides high school and university students, office workers, freelancers, and sole proprietors are also using study cafes.