Is Starbucks Taking the 'Luckin' Route?! Opening a Store in the Most Unexpected Place!!!

Starbucks Expands to Unconventional Location: Inside Seoul's Subway Station

Coffee, as an essential daily refreshment, has also become a social currency. You may have noticed that coffee shops tend to cluster at corners of residential areas, with many also opening at the base of office buildings. However, near modern urbanites' most important transportation hubs, coffee shops are rarely found. Recently, Starbucks Korea has opened a store in an unusual location—the global coffee chain giant has established a branch inside a subway station.

According to South Korean media Pulse News, Starbucks Korea, under the Shinsegae Group, has opened a branch in a subway station in Seoul, South Korea. Specifically, it's located in Gangnam Station—one of the subway stations with the highest floating population and most complex traffic flow in South Korea's urban rail system. Reportedly, the station has an average daily passenger flow of up to 100,000 people, with as many as 19 Starbucks stores within a 500-meter radius.

This Starbucks store differs from traditional ones. While traditional Starbucks stores, situated in spacious locations, are renowned for their comfortable third space, this new store has opened in Seoul's most central and bustling area, aiming to attract more consumer groups and provide quick service to commuters during peak morning hours. According to Starbucks Korea, this underground location is part of the brand's expansion strategy in the Korean market.

Meanwhile, staff at Seoul's subway stations told the media that while Seoul Metro doesn't prohibit passengers from eating in train cars, due to the COVID-19 pandemic, they recommend passengers refrain from eating in subway cars and instead wear masks properly. Notably, the South Korean government has already lifted the outdoor mask mandate. However, in indoor or enclosed spaces, people are still required to follow mask-wearing requirements.

Starbucks' Second Subway Location

Actually, this is one of only two Starbucks stores located inside subway stations. The other Starbucks store operating in a subway station is located at Canary Wharf Station in London, UK. This new concept "express café" features minimal seating, a relatively compact space, and importantly, a significantly simplified menu with only basic options for consumers to choose from. All these simplifications are designed to ensure a faster and more convenient experience for "grab-and-go" customers.

With the development of modern times, people's pace of life has accelerated. Some consumers working in city centers are mostly white-collar workers rushing for time. Starbucks has targeted this group of people with high annual coffee consumption and strong purchasing power.

Starbucks' Success in the Korean Market

Starbucks entered the Korean market in 1999. Currently, Starbucks Korea operates 1,674 stores, with sales reaching 602.1 billion won (approximately $475.8 million) in the first quarter of 2022, a 15% increase year-on-year. Since last July, Korean retailer Emart has been the largest shareholder of Starbucks Korea, holding 67.5% of its shares.

Image source: Internet

For professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style)

For more specialty coffee beans, please add FrontStreet Coffee on private WeChat, ID: qjcoffeex