On August 11, a joint report released by the Ministry of Agriculture, Food and Rural Affairs and the Korea Rural Economic Institute once again proved Koreans' exceptional love for coffee with hard data. While it is surprising that the domestic coffee market has exceeded 3.73 trillion KRW, the statistic that grabbed the most public attention is the fact that the number of coffee shops nationwide has officially surpassed 100,000.

Currently, there are approximately 106,000 cafes across the country. This means that one out of every seven dining establishments in Korea is a coffee shop. It's not just the number of stores that has increased; consumer tastes have completely shifted as well. While the market for instant coffee mixes has been declining every year, the market for roasted coffee beans has grown at an average annual rate of over 15% for the past six years. This reflects the daily lives of modern people who may eat a light meal but refuse to compromise on a cup of coffee that suits their personal taste.

However, the flip side of this glorious 'Coffee Republic' is much more bitter than one might think. As competition reaches a fever pitch with cafes appearing on every corner, small business owners are feeling the pressure more than ever. In particular, the cutthroat competition among low-cost coffee franchises that recently dominated the market has squeezed individual store operating margins down to the 10% to 15% range. No matter how much coffee is sold, after deducting labor costs, ingredients, and rent, the actual net profit that business owners take home is alarmingly thin.

We have entered a consumer paradise where high-quality coffee can be purchased for around 1,000 KRW anywhere on the street, but behind it lies the plight of small business owners pushed to their survival limits. That is why the overwhelming milestone of 100,000 stores is not entirely a cause for celebration.

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