Cost per cup of coffee is 111 won... Consumer groups criticize coffee price hikes = Korean media

A consumer group has pointed out that it is not fair for franchised coffee shops to raise the price of coffee due to rising coffee bean prices.
On the 15th, the Korea Consumer Association (Central Association of Consumer Education, Korean Women's Consumer Union, Korean YWCA Federation, Korean Consumer Union)
The group, which includes 12 other organizations, said, "The cost of coffee beans accounts for only about 5% of the cost of a cup of Americano," and "Price increases should no longer be justified on the grounds of rising coffee bean prices."
The council, concerned about the burden on consumers caused by the continued rise in coffee prices in recent years, investigated the coffee bean usage and business performance of major franchise companies.
According to data from the Korea National Statistical Office, the prices of eating out and coffee last month rose 5.6% compared to the same month last year, more than three times the overall consumer price inflation rate (1.7%).
The numbers. The franchise industry cites the rise in coffee bean prices as the main reason, but the council calculated that the cost of coffee beans (about 10 grams) per cup of espresso is
It was only about 111 won (about 11.8 yen). The proportion of coffee beans in the price of a tall Starbucks Americano (2 shots, 4,700 won/about 500 yen)
Even for the low-priced Americano (1,700 to 1,800 won/approximately 180 to 191 yen), coffee beans account for 12.
The council found that the average cost of coffee is between 3% and 13.1%. The council said, "The cost of coffee is much more affected by the cost of materials such as cups and straws, as well as rent, labor costs, and sales and administrative expenses.
"This will have a major impact," he explained. The results of major coffee chains that have recently raised prices, including Starbucks, Mega MGC Coffee, Twosome Place, and Compose Coffee, were analyzed.
The analysis revealed that all of them have maintained or expanded their profits. Starbucks surpassed 3 trillion won (approximately 319 billion yen) in sales last year, and its operating profit increased by 3.5% compared to the previous year.
Mega MGC Coffee also recorded an average sales growth rate of 72.6% over the past four years. Twosome Place's operating profit increased by 25.2% and Compose Coffee's financial results also increased.
The council said, "We would like to know the real reason for the price hike, given that the company is showing good results," and added, "We are concerned about the sustainability of the company."
"We must not forget that fair and transparent pricing is important for consumer trust," he stressed.