"After 1,000 KRW Coffee, This Is Next"... Hit Japanese Convenience Store Item Endorsed by Choo Sunghoon Arrives in Korea [Interview]

Inkyu Lee, Manager of GS25 New Format Operations Team
Inspired by Popular Japanese Convenience Store Menu, Introduced in Korea
Additional Monthly Sales of 2.25 Million Won per Store
"Instant Food Is the Future of Convenience Stores... A Mov

"I witnessed the popularity of fresh fruit smoothies at Japanese convenience stores, and that convinced me to introduce them in Korea."

Choo Sunghoon recommended products sold only at Japanese convenience stores through his YouTube channel. Screenshot from YouTube 'Choo Sunghoon'

Inkyu Lee, manager of the GS25 New Format Operations Team, explained the background behind introducing fresh fruit smoothie machines during a recent interview with Asia Economy at the GS Retail headquarters in Gangnam-gu, Seoul. He said, "I saw an opportunity when Smoothie King withdrew from the Korean market."

He added, "With the rising popularity of low-cost coffee chains such as Mega Coffee and Compose Coffee, sales of canned coffee at convenience stores have been declining. In this situation, where we needed to discover a new food category for convenience stores, I found inspiration from Japanese convenience stores, which are similar to Korea in many ways."

Inkyu Lee, manager of the GS25 New Format Operations Team, is being interviewed by Asia Economy at the GS Retail headquarters in Gangnam-gu, Seoul. Photo by Jaehyun Park

GS25, the convenience store chain operated by GS Retail, was the first in the industry to introduce fresh fruit smoothie machines at its directly managed stores in December last year. Starting in April, the company conducted an eight-week test run at about 10 stores located in areas near subway stations and office districts. Then, from June, GS25 expanded the installation to around 100 stores nationwide over a two-month period. With the effectiveness proven, the company plans to expand to 500 stores by the end of the year. Manager Lee said, "We began the introduction last year and have been preparing for a full-scale expansion starting this summer. Around February, broadcaster Choo Sunghoon introduced smoothies on his YouTube channel, which naturally increased customer demand."

In February, broadcaster Choo Sunghoon introduced fresh fruit smoothies sold at Japanese convenience stores in his "Japanese Convenience Store Tour" video on his YouTube channel. As of the 8th, the video had garnered 8.14 million views, reflecting its immense popularity. On various social networking services (SNS), reviews such as "The smoothie introduced by Choo Sunghoon at Japanese convenience stores is now available in Korea" and "I tried the smoothie recommended by Choo Sunghoon?it’s not too sweet and tastes great" have been posted.

In fact, Japanese Seven-Eleven installed high-end smoothie machines worth about 8 million KRW each in more than 18,000 stores, and the smoothies became so popular that they were considered a "must-try food" at Japanese convenience stores.

Thanks to this word-of-mouth, demand for convenience store smoothies has grown. At GS25 New Annyeong Insadong, a location in a tourist district, the introduction of smoothie machines has resulted in additional monthly sales of 2.25 million KRW per store at several locations. According to Manager Lee, since the head office covers the machine costs, stores can earn an average net profit of 500,000 to 1 million KRW depending on the margin rate and contract terms.

Fresh fruit smoothies released by GS25. From the left, Mango Banana Smoothie, Strawberry Banana Smoothie, Green Smoothie, Strawberry Blueberry Mango Smoothie. Photo by JaeHyun Park

The fresh fruit smoothies released by GS25 are characterized by being made to order, ensuring high freshness. Four types have been launched: Mango Banana, Strawberry Banana, Strawberry Blueberry Mango, and Green Smoothie. In line with the wellness trend, alternative sweeteners are used and the calorie content has been reduced. The price is set at 3,000 KRW, which is about 5-10% cheaper than smoothies sold at regular cafes.

By using frozen cup fruit, customers simply place the cup in the machine and wait one minute for the smoothie to be automatically prepared. Manager Lee emphasized, "Ensuring the safety of the fruit is crucial, so we have established factory lines with specialized frozen fruit partners to package the fruit in dedicated cups for sale. Since the fruit is frozen, the shelf life is about 7 to 8 months, and we are continuously considering ways to ensure fruit safety."

Going forward, GS25 plans to sequentially introduce new menu items using these machines, such as frappuccinos, shakes, and patbingsu (Korean shaved ice dessert). Manager Lee stated, "40% of customers who purchase fruit smoothies also buy related products such as Chicken25, Cafe25 Americano, and Gamtongran (flavored eggs). We will continue to introduce new menu items that reflect wellness trends."

A strawberry banana smoothie is being made in a fresh fruit smoothie machine. Photo by JaeHyun Park

Recently, competition in the smoothie market among domestic convenience stores has intensified. Since June, CU convenience stores have introduced self-serve smoothie machines at about 60 stores in the Seoul metropolitan area and are gradually expanding to stores nationwide. Seven-Eleven will also begin installing dedicated instant smoothie machines from Japanese Seven-Eleven at stores nationwide starting this November. Manager Lee emphasized, "While you can find the same processed foods at any convenience store, fresh, made-to-order foods represent a blue ocean where convenience stores can differentiate themselves. As Japanese convenience stores are leaders in fresh, ready-to-eat foods, I believe the future of Korean convenience stores lies in instant food offerings."