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STORES | Staff Reporter, Korea
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Starbucks Korea joins delivery fray with Seoul store

The company expressed plans to open another store if demand is high.

Starbucks Korea has jumped into the delivery fray with a delivery-only store in Gangnam District, Seoul on 27 November, in its attempt to boost annual sales in South Korea to $1.86b (KRW2t), Korea Bizwire reported.

The delivery-only store has no space assigned for visiting customers except for coffee making stands and a waiting room for delivery persons. This is part of a pilot project by the company. Following an analysis of its demand, it is looking to open another similar store in Gangnam District in December.

Industry watchers said the company's decision to enter the delivery service might be its long-term preparation for the aftermath of the pandemic, which has wreaked havoc on the food and beverage industry.

Starbucks recorded a net profit growth of 18.5% YoY in 2019, whilst sales came in at $1.63b (KRW1.8t) won during the year, on the cusp of reaching the $1.81b (KRW2t) milestone.

The COVID-19 pandemic, however, has served as a bump in the road, slowing the coffee giant’s bid to grab the coveted 2 trillion won title.
 

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