The appointment of Jo Gyu-dong is part of Ediya’s ongoing efforts to more effectively compete with fast-growing value-focused operators and premium international brands
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An Ediya Coffee shop in Myeongdong, Seoul, South Korea | Photo credit: Icot Igol Production/Shutterstock
South Korea’s Ediya Coffee has appointed Jo Gyu-dong as its new CEO as it seeks to reestablish its footing in South Korea’s highly competitive and increasingly polarised branded coffee shop market.
Jo joined Seoul-based Ediya in 2018 and led the coffee chain’s franchise and research divisions before being appointed Head of Distribution and Supply Chain Management. He succeeds Kim Sang-soo who had served as CEO since April 2024.
With 4,000 outlets, Ediya is one of South Korea’s largest coffee chains. However, the company has struggled with its brand positioning over the last two years amid increased competition from value-focused domestic operators and premium international brands, which has led to growing d’iscontent from franchisees concerning store-level profitability.
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With a population of 52 million people, there is roughly one coffee shop for every 520 citizens in South Korea. Affordable branded chains such as Mega Coffee and Compose Coffee have significantly grown their market share over the last few years with low-cost franchise models and discounted beverages starting from as little as ₩2,000 ($1.36).
In contrast to a growing affordable coffee chain segment, mid-range operators also face growing competition from premium and specialty international brands. Seattle-based coffee giant Starbucks prices beverages from ₩4,600 ($3.13) while US specialty coffee operators Blue Bottle Coffee and Intelligentsia Coffee offer beverages starting from ₩5,000 ($3.41) and ₩5,500 ($3.75) respectively. Japan’s % Arabica, Germany’s The Barn and Singapore’s Bacha Coffee have also ventured into the market in recent years.
According to franchisees quoted in The Korea Times, Ediya, which prices beverages from ₩2,800 ($1.91) to ₩4,200 ($2.86), is struggling to straddle both sides of the market, with stores losing sales as a result.
In 2023, Ediya reported its first annual revenue decline since it began disclosing sales data in 2012 – with group sales falling 1% year-on-year to ₩276bn ($188m) and operating profits down 18% to ₩8.2bn ($5.5m).
In an attempt to revitalise the brand and reassure franchisees, Chairman Moon Chang-ki announced on 2 January 2025 that the coffee chain would ‘leap forward this year with change and innovation’. In a New Year company address, Moon said he would enhance Ediya’s management team and internal decision-making processes to strengthen its competitiveness in the local market, with a long-awaited brand revamp, investment in franchisee operations and expansion into international markets planned.
In October 2024, Ediya unveiled actor Byeon Woo-seok as its first Brand Ambassador and pledged to carry out various marketing activities to become ‘a brand with a new and fresh image’.
Ediya is also seeking growth outside its home market. In December 2024, the coffee chain launched the first of 200 planned stores in Malaysia. The Southeast Asian country is Ediya’s first major international market after an unsuccessful attempt to gain a foothold in China 15 years ago and opening its first overseas store on the US island territory of Guam in 2023. Moon said entering Malaysia would ‘lay the foundation for pioneering the Southeast Asian coffee market’.