Fresh from posting triple-digit sales and profit growth for 2023, the Seoul-based coffee chain has reached 3,000 stores with a new site in Oido, Gyeonggi province
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Mega Coffee’s annual sales exceeded those of market leader Ediya Coffee for the first time in 2023 | Photo credit: Romeo A.
Seoul-based Mega Coffee has widened its lead in South Korea’s increasingly competitive value-focused branded coffee shop market by reaching 3,000 stores.
Mega Coffee opened its first store at the Hongik University in Seoul in 2015. The business reached 1,000 outlets in 2020 and 2,000 sites in 2022. Its latest store is located in Oido, an island on the west coast of South Korea’s Gyeonggi province.
In April 2024, an audit report from parent company Ann House showed that Mega Coffee achieved 111% year-on-year sales growth in 2023 to reach KRW 368bn ($271.6m) with profits rising 124% to KRW 69bn ($51.2m).
The results marked the first time Mega Coffee’s revenues exceeded those of market leader Ediya Coffee, which posted sales of KRW 275.5bn ($201.4m). Seoul-based Ediya Coffee reached 3,800 stores across South Korea at the end of 2023.
Alongside smaller-format stores, Mega Coffee’s pricing is also significantly below Ediya Coffee’s. The chain charges approximately 1,500 won ($1.12) for a hot espresso, compared to KRW 3,200 ($2.36) at Ediya Coffee.
Mega Coffee’s closest competitor in South Korea’s affordable coffee shop market is Compose Coffee, which surpassed 2,500 stores in March 2024 and is expected to reach 3,000 sites by the end of the year.
World Coffee Portal’s Project Café East Asia 2024 report forecasts the total 31,000-store South Korean branded coffee shop market will surpass 41,700 outlets within the next five years.
