"Did Coffee Prices Go Up Again?" Owners Frustrated as 200 Won Cup Charge Appears on Receipts

Ministry of Climate Accelerates Separate Cup Pricing Discussions
No Actual Price Increase, but Customer Complaints Feared
Additional Costs Expected for POS System Adjustments
"Active Promotion and Careful Consideration Needed First"

As the government accelerates discussions on introducing the “separate cup pricing system” (cup price labeling system) with the aim of reducing plastic usage, concerns are growing among small business owners. They worry that consumers may perceive the system as a “coffee price hike,” potentially leading to unnecessary backlash and confusion at the point of sale. Critics point out that if the government implements environmental policies without fully considering the readiness and acceptance of those on the ground, it could ultimately shift the burden onto both small business owners and consumers.

Reference image. Yonhap News

According to industry sources on January 5, there is growing concern among individual cafe owners that the introduction of the separate cup pricing system could trigger a flood of customer complaints. Relevant ministries, including the Ministry of Climate, Energy and Environment and the Ministry of SMEs and Startups, are reportedly gathering feedback from industry stakeholders and experts, with plans to consider full implementation as early as the end of this year or, at the latest, early next year.

The separate cup pricing system is part of the Ministry of Climate’s anti-plastic policy. Under this system, the price of single-use cups-previously included in the coffee price-would be displayed separately on the receipt for consumers to see. Although the actual coffee price would not increase, there are concerns at the ground level that simply itemizing the previously hidden cost of single-use cups could give consumers the impression of a price hike. This could unnecessarily provoke customer resistance and result in additional operational burdens, such as the need for staff to provide clear explanations at the point of sale.

Mr. Park (57), who runs a franchise coffee shop in Siheung, Gyeonggi Province, said, “At a time when people are already sensitive about rising prices, if an extra 200 to 300 won is itemized on the receipt, some customers will definitely question why there is a separate charge for single-use items or complain that prices have gone up. The additional burden of responding to these complaints will fall squarely on the store owners.”

There are also concerns that the system could lead to tangible costs beyond simple operational burdens. For business owners running independent shops rather than large franchises, it would be necessary to manually update the settings on their POS (point-of-sale) systems, which could incur one-time fees. Currently, most shops offer customers two options during checkout: “for here” or “to go.” To implement the separate cup pricing system, shops would need to add new options for “reusable container” and “single-use cup,” as well as set up related notification messages, requiring additional work.

There are also concerns that the separate cup pricing system could follow a similar path as previous government environmental policies. Examples include the “mandatory use of paper straws” policy, which has been repeatedly postponed and is now effectively suspended indefinitely, and the “single-use cup deposit system,” which was ultimately left to the discretion of local governments amid debates over its effectiveness. The worry is that, as with these earlier, poorly designed policies that failed to incorporate feedback from those on the ground, the only result will be increased burdens for small business owners.

Choi Bookyung, Associate Research Fellow at the Small Enterprise and Market Service’s Small Business Policy Research Institute, emphasized, “Fundamentally, both business owners and consumers have a deep mistrust of government policies, so it is inevitable that there will be skepticism about the separate cup pricing system as well. The government needs to clearly explain the direction of the policy and actively promote it to help consumers understand and improve perceptions, thoroughly considering ways to ensure the successful implementation of the policy.”