Introduction of Swiss Luxury "Franke" Coffee Machines
Continued "Super Value for Money" Strategy
Advancing the Cafe25 Brand
GS25, the convenience store chain operated by GS Retail, announced on September 8 that it will introduce the "A400 FLEX" model from the Swiss company Franke as the new coffee machine for its in-house brewed coffee brand, Cafe25.
GS25 plans to complete the installation of 700 Franke machines by the end of this month and expand the total to 1,200 units by the end of the year.
GS25 has launched the Cafe25 advancement project, taking into account the popularization of brewed coffee consumption and changing coffee drinking trends. As part of this initiative, the company prioritized the introduction of new brewed coffee machines.
Franke is a renowned Swiss coffee machine brand. The "A400 FLEX" model being introduced is a third-generation coffee machine, with each unit priced at 13 million won. It features a coffee extraction spout height of 21.5 centimeters-about 2.5 centimeters higher than similar machines on the market (measured from the base where the cup is placed to the spout).
Over the past year, GS25 conducted a phased evaluation process involving five leading brewed coffee machine brands, including expert assessments, general customer reviews (with 106 participants), and internal staff evaluations. Key criteria included coffee quality, operational convenience, and machine design. The Franke machine received the highest scores in all categories and was ultimately selected as the new machine to be introduced.
GS25 also plans to develop new menu items for Cafe25 in the future. With the increased spout height, it will be possible to develop and serve larger-sized drinks compared to previous offerings. The company is considering the development of large-sized menu options to align with the trend of increasing coffee consumption.
Even after the introduction of the new coffee machines, GS25 will continue its "super value for money" pricing strategy. The company will maintain the price of the Cafe25 Hot Americano at 1,000 won. After reducing the price to 1,000 won from March to August this year, the number of customers purchasing two or more cups of Cafe25 per day surged by 117.5% compared to the same period last year.
Lee Kyuhyuk, Cafe25 MD at GS25, stated, "Since its launch in 2015, Cafe25 has grown into a leading convenience store product, selling over 100 million cups annually, thanks to pioneering investments that were previously unimaginable in the industry. By introducing luxury coffee machines and maintaining our super value for money strategy, we plan to continue driving the brewed coffee market in convenience stores."
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