Single-Use Coffee Cup Fees Introduced in South Korea as Plastic Ban Drives Up Prices for Both Fresh-Brewed and Ready-to-Drink Coffee

South Korea's Controversial Cup Deposit System Sparks Coffee Shop Outrage

Since South Korea reinstated its plastic ban, many chain coffee shop owners have taken to online forums to vent their frustration with the government's questionable policies: "Do I have to pay to recycle waste just because I run a franchise coffee shop? Is there any compensation?"

The Disposable Cup Deposit System

Here's what happened... The South Korean government decided to implement a "disposable cup deposit system" starting June 10th across 38,000 franchise coffee, beverage, and restaurant outlets nationwide. Under this system, customers who purchase drinks requiring disposable cups (excluding reusable plastic cups or mugs) must pay a deposit of 300 Korean Won (approximately 1.6 RMB). After finishing their beverage, customers can return the used disposable cup to any store of the same brand (for example, if you buy coffee from Starbucks, you can return the cup to any Starbucks location) to receive their 300 Won deposit back.

The Unexpected Twist

So far, this seems reasonable... But what makes it a "questionable operation" doesn't stop there. The regulation also states: as long as you find disposable cups on the street and return them to the corresponding brand stores, you can also receive the 300 Won deposit... with no time limit, return anytime (professional recyclers upon reading this regulation must have shown an aunt-like smile). Yes, regardless of whether you purchased coffee or not, as long as you find disposable cups, each one can earn you 1.6 yuan...

Coffee Shops Turn Recycling Centers?

With this policy, franchise restaurants have suddenly transformed into "franchise recycling centers"??? This kind of thinking is truly impressive. Many franchise coffee shop owners expressed: "This increases our workload! Paying to recycle waste is one thing... Peak hours and lunch breaks are the busiest times for coffee shops, with already tight staffing. During busy periods, we now need to assign someone specifically to collect cups and return deposits, which is completely unreasonable. At least there should be time restrictions for returns!"

Government's Environmental Defense

In response, the official responsible for this policy stated: This measure targets franchise beverage stores because these 38,000 outlets use 2.8 billion disposable plastic/paper cups annually, with paper cups typically having plastic lids, making them very environmentally unfriendly! If you find it troublesome, don't provide disposable cups to customers, or encourage them to use reusable cups through preferential policies!

Misunderstandings and Rising Costs

Well... this really puts businesses in a difficult position! Especially coffee shops, which basically all provide takeout services - not using disposable cups is impossible... Additionally, due to this regulation, wholesale prices for disposable items have also risen... Regarding the issue mentioned at the beginning of "paying to recycle waste," the policy official stated that everyone has misunderstood! This misunderstanding stems from customers paying an additional 300 Won when purchasing coffee, with businesses thinking they can earn this money! But in reality, this fee is an additional payment from customers, and theoretically, this 300 Won doesn't belong to the business's earnings, so how can it be considered "paying to recycle disposable cups"!

Consumer Concerns and Price Increases

Regarding the issue that disposable cups require additional fees even though deposits can be refunded, consumers also expressed confusion! They even feel it forces difficulties upon businesses/customers, because businesses will adjust drink prices accordingly. With the already rising wholesale costs of disposable items, businesses will certainly find the 300 Won refund unreasonable; secondly, people buy coffee for convenience, how many would really bring reusable cups to buy coffee!

Indeed, major coffee shops in South Korea have already seen different degrees of price increases due to rising coffee bean costs. If shops don't profit from the disposable cup fees, they will only find ways to continue raising coffee prices, with consumers ultimately bearing the cost... The previous coffee price increases have already taken away the joy of affordable Americanos for many Koreans (before the collective price increases, Americanos at many Korean coffee shops cost around 1,000 Won, approximately 5 RMB). Now with takeout cups being subjected to these measures,估计 many coffee enthusiasts will become "depressed"...

Broader Impact on Coffee Industry

Aside from freshly brewed coffee needing price increases due to deposit issues, even ready-to-drink coffees in convenience stores have seen price increases of over 200 Won due to plastic restrictions... (This is not a deposit) If you buy ready-to-drink coffee, the cup deposit cannot be refunded!

The government's tough stance has made many chain coffee shop owners consider closing their businesses and opening non-franchise coffee shops, which would at least reduce franchise fees while avoiding restrictions on disposable cup deposits. Many franchise beverage stores predict that if businesses don't offer promotional activities when the policy is actually implemented, their business will definitely be affected to varying degrees.

Image source: Internet

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