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Tag: Ediya

  • Ediya Coffee to open in Guam this year

    Ediya Coffee to open in Guam this year

    “Ediya Coffee will open an Ediya Coffee store in Guam, the U.S. autonomous territory, in December this year,” said Chairman Moon Chang-ki on Aug. 23. This is the company’s first overseas store. Ediya currently operates about 3,000 coffee shops in Korea.

    Chairman Moon said, “We will make it possible to taste Ediya Coffee anywhere in the world through Dream Factory, its own production base established in Pyeongtaek, Gyeonggi Province 2020.

    Chairman Moon Chang-ki of Ediya Coffee speaks at a press briefing held at the Ediya Dream Factory in Pyeongtaek, Gyeonggi Province, on Aug. 23, 2022.
    Meeting with reporters at Ediya Dream Factory, he said, “The Guam store has not been able to confirm the opening date due to a lack of electricity and other facilities, but it will open within December. The interior of the store is finished.”

    Introducing the Dream Factory as “the cradle of Ediya’s dream,” Chairman Moon said, “We built a production facility on a 4,000 pyeong (13,223㎡) site for the dream of allowing people to taste Ediya coffee wherever they go around the world.”

    He also said that the company purchased an additional 4,000 pyeong of land near the plant and now has a production base of 8,000 pyeong (26,446 square meters).

    Chairman Moon said, “The Taegeukgi (the Korean national flag) is hung in front of the Dream Factory. I will try until the day comes when everyone in the world can enjoy our Korean coffee.”

    Dream Factory, which Ediya Coffee first unveiled on the same day, is a production base established in 2020 at a cost of about 40 billion won.

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  • Ediya Coffee opens 3000th store in Korea

    Ediya Coffee opens 3000th store in Korea

    South Korean coffee chain Ediya Coffee has opened its 3000th store.

    The new Daejeon outlet is a significant milestone for the local franchise, matched only by competing for cafe and bakery Paris Baguette. Ediya has opened 300 locations each year for the past six, and has been steadily expanding since launching in Seoul in 2001.

    The firm recently appointed two vice presidents to manage the rapid expansion: Kim Nam-yeob, previously at Hyundai, and Shin Yoo-ho, who was working for Paris Baguette owner SPC Group.

    The coffee brand is named after an Ethiopean empire where the original coffee plant was discovered.

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  • Ediya Coffee drops plan to launch an IPO for China

    Ediya Coffee drops plan to launch an IPO for China

    South Korea’s Ediya Coffee has dropped its plan to go public this year, opting instead to re-enter China through Beijing.

    “In terms of growth and profit margin, we are fully ready for an IPO, but we decided we must tend to our franchisees first,” says CEO Moon Chang-ki.

    In a move that would have led to Korea’s first coffee stock, Ediya Coffee in December appointed Mirae Asset Daewoo as its underwriter for an IPO this year. Ediya had decided to list to help it challenge Starbucks Coffee on Ediya’s home territory.

    Meanwhile, labour costs have shot up in South Korea after the hourly minimum wage was pushed up by 16.4 per cent to KRW7530 (US$7) from January.

    “The subsidy to help franchisees sustain staff increased by 4.5 billion won,” says Moon, partly admitting the spike in labour cost had disrupted the IPO schedule. Instead, the coffee chain will renew its overseas campaign, starting with a shop in Beijing next year. It had pulled out of China in 2008 after three years.

    Moon acquired Ediya Coffee from its founder in 2004. Twelve years later it became the first homegrown coffee brand to run 2000 stores. It is expected to open its 2500th store this month. The company generated KRW700 billion in sales last year and as about 10,000 employees.

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  • Korea’s Twosome Place, Ediya coffee chains planning an IPO

    Korea’s Twosome Place, Ediya coffee chains planning an IPO

    Two South Korean coffee franchises are pushing ahead with IPOs to raise funds for expansion both domestically and globally.

    A Twosome Place and Ediya Coffee are seeking to challenge Starbucks Coffee, which dominates the Korean market. It says Ediya aims to be listed by the end of next year, which would be a first for a coffee shop franchise.

    Ediya would probably use the new capital to build a roasting factory and to expand overseas. The company ranks third in Korea in terms of sales and first in store numbers. With 2200 stores, it has posted KW150 billion (US$139.5 million) in sales, following Starbucks (more than KW1 trillion) and Twosome (KW200 billion).

    Meanwhile, Twosome plans to separate from CJ Foodville to become a subsidiary in February. It is also expected to list on the Seoul bourse to raise more funds.

    Korea already has more than 90,000 coffee shops, but is still attracting global chains. US Blue Bottle Coffee has established a local subsidiary and expects to open its first Seoul store in March.

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  • Price war scratches Korean espresso chains

    Price war scratches Korean espresso chains

    Major franchised Korean coffee chains saw their revenue fall in 2015 in the face of tougher competition with cheap take-out coffee amid economic slowdown, heading to another tough year, data shows.

    Homegrown coffee brands have sprung up in Asia’s fourth-largest economy over the past decade to capitalise on the growing population of coffee drinkers, but their growth has slowed recently in the saturated domestic market.

    Adding to their woes, low-cost coffees at convenience stores and mini take-out stalls have enjoyed growing popularity among price-conscious consumers, posing a threat to franchise coffee shops standing on every corner of major streets.

    Coffee Bean & Tea Leaf, an American franchise chain owned by Seoul-based Mirae Asset Private Equity Fund, posted 138.9 billion won (US$121.3 million)  in sales last year, down 5.1 per cent from a year ago, its regulatory filing showed. Its operating profit tumbled 68.5 per cent to 3.9 billion won, although the number of its shops increased by just nine to 234 during the period.

    Paul Basset, a specialty coffee house operated by Maeil Dairies Co, said it logged 48.4 billion won (US$42.3 million) in sales, but its net swung to a loss of 180 million won due to rising marketing costs and aggressive store expansion.

    Sales at Caffe Bene sank 14.9 per cent on-year to 121 billion won, expanding operating loss nearly four times to 11.4 billion won due to slumping businesses of other food franchise subsidiaries.

    While mid-end franchise stores had a sluggish year, brands at both ends of the price spectrum were largely unscathed by the latest consumption trend.

    Ediya, a low-end coffee shop with the largest number of outlets – over 1500 nationwide – raised 135.5 billion won in sales, up 16.5 per cent from a year ago. It plans to expand its network to 2000 this year.

    And sales at US coffee giant Starbucks also rose 25.4 per cent on-year to 773.9 billion won (US$675.7 million) in 2015 on the back of high-end specialty coffee service and bakery items.

    Another tough year is awaiting the major coffee brands as convenience stores have been aggressively expanding in-store coffee services nationwide. Their coffee is considered drinkable at a price as cheap as 1000 won, about a quarter of Starbucks’ tall Americano sold at 4100 won in South Korea.

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