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Korean Coffee Market 3




             Survey of 100 Roastery Coffee Shops

             Business Management is
             More Difficult than Roasting
             The Korean coffee market is currently under a roastery coffee shop fever unprecedented worldwide. In what
             environment do the owners of roastery coffee shops actually manage their shops and what do they think
             of the current situation? To find out, Monthly Coffee conducted a survey of 100 owners of roasteries among
             subscribers of the magazine, members of the Specialty Coffee Association of Korea, and the list of roastery
             coffee shops provided by roaster selling companies.


             >>           Basic survey of respondents
                   Number of respondents	                             By region                           By sex	                                   By age


                                                               Seoul 50, Gyeonggi-do 20,
                                                                                                                                         20s 7, 30s 60, 40s 27,
                             Total 100                    Gyeongsang-do 14,Jeolla-do 10,            Male 87, female 13
                                                                                                                                                50s 3, 60s 3
                                                         Chungcheong-do 3, Gangwon-do




                                                                                  43%                                                   46%
                                    47%
                                                                                                                                                                        27%
                                                         27%
                 13%                                                      17%                     17%                                                    20%
                                                                                           13%
                           6%                   7%                                                        10%                7%


               Business   Office Residential   Station   etc              1~2     3~5      6~9   10~19    20             Less than More than 1 year More than 3 years More than
                                                                                                                          1 year   Less than 3 years Less than 5 years 5 years

                           Commercial Area                                      Number of a Nearby Cafe                           Operating Experience

             >>           General shop management
               1.Where is your shop located?                                                     followed by subway station areas at 7 percent, and offices
               To the question where their shops are located,                                    at 6 percent.
             47 percent replied residential areas accounting for                                    2. What is the number of coffee shops within
             almost half of all. We can tell from this that most                                 your shops 200m radius?
             roastery coffee shops are located in residential areas.                               This question was asked to find out how many
             This was followed by 属other属賊 such as college areas,                               coffee shops are located within the 200m radius
             areas without special commercial zones, commercial                                  from their shops. It may differ depending on the
             areas or combined. Of the respondents, 13 percent                                   commercial zone, but we can tell the degree of
             said their shops are located in commercial areas,                                   competition by looking at the distribution of coffee

                                                                                                                                                                     2012        09




9-11 Survey of roastery coffee shops.indd            1                                                                                                                        12. 04. 10   ろ 8:42
shops within a distance considered close enough to       that the number of shop owners who started to learn
             be considered competing shops. For your reference,       roasting in the last three years is increasing. This was
             coffee shops here include all whether with or without    followed by 33 percent responding over 5 years and
             roasteries. Fast food shops whose main business          27 percent over 3 and less than 5 years, both of which
             is not selling coffee were excluded. According to        are relatively high. Below one year was minimal at 3
             the results, 43 percent responded 3~5. Those who         percent. The ratios of those answering over one and
             responded 1~2 was relatively low at 17 percent but       below three years, between three and five years, and
             13 percent said between 6~9, 17 percent between          over five years were similar without drastic differences.
             10~19, and even 20 percent over 20. This means             4. What is the capacity of your roaster?
             about 80 percent of roasteries compete with more           We asked the capacity of their roasters (if using
             than three up to 20 competing coffee shops in their      more than two roasters, the sum of both). Those using
             neighborhood.                                            roasters of 1kg capacity accounted for the most at 40
               3. How many years of roasting experience do you        percent followed by 30 percent of 3kg. This means that
             have?                                                    about two thirds of all roasteries use small roasters
               This was a question separate from the period of shop   of between 1~3kg capacity. These were followed by
             operation because the period of shop operation is not    17 percent using roasters capable of roasting over
             necessarily the same as the period of their roasting     6kg and 7 percent of 10kg capacity. Only 6 percent
             experiences. The survey results showed that 37 percent   answered using below 1kg or several roasters adding
             had over one and below years of experience. This means   up to over 20kg.



             >>       Level of satisfaction with the operation of roasteries
               What was the most difficult about running a            Generally, in individual roastery shops, the owner is
             roastery?                                                responsible for the roasting, extracting and providing
               W hatever shop one runs, there are many                services as well as other detailed items. As such, they
             difficulties. But we asked what they found the most      find the work load difficult to handle as they need
             difficult about particularly running a roaster y.        to process and manage as the owners of the shops,
             Answers provided to choose from were managing            the roasting schedule, shop management schedule
             the coffee bean stock, profit rate, uniform taste,       and other items. The answer with the third largest
             civil complaints from the neighborhood, work load,       number of respondents was uniformity at 17 percent.
             and other. Managing coffee bean stock had the            Roastery coffee shops find it difficult to provide
             greatest number of respondents with 30 percent           uniform taste meaning they worr y much about
             saying they found it difficult to measure the amount     roasting itself. Other answers included low profit at
             of coffee bean consumption and appropriately             13 percent, other at 10 percent, and civil complaints
             managing the stock according to the frequency of         from the neighborhood at 7 percent. Compared to
             roasting. The answer with the second largest number      other questions, the answers were not biased toward
             of respondents was work load with 23 percent             one but relatively diverse meaning they commonly
             saying that they only have one person managing           feel various difficulties running a roastery which
             the business and having to take care of everything.      requires management in various areas.


        10     www.coffeero.com




9-11 Survey of roastery coffee shops.indd   2                                                                                 12. 04. 10   ろ 8:42
>>       Roastery menu and sales
                1.Average number of cups of coffee sold daily                                                  Usually
                                                                                                                 7%
                                                                                                                                             Very dissatisfied
                                                                                                                                                         3%

                This question enables indirectly finding out a shops sales. Fifty to
             hundred cups topped the list at 43 percent, followed by 100~200 cups at 24                                Satisfied
                                                                                                                          37%
                                                                                                                                             Very satisfied
                                                                                                                                                    53%

             percent. Those selling 10~30 cups remained at 13 percent, and 10 percent
             said they sold 30~50 cups, followed by over 200 cups at 10 percent. The
                                                                                                                      Operating of Satisfaction Roastery
             results show that when there are 10 shops selling a minimum KRW one
             million worth of coffee provided that the average cost of a cup is KRW 5,000,                                               Beans for sale
                                                                                                                                                   30%
             there are over 10 shops selling around KRW 100,000 worth of coffee a day.        Differentiated
                                                                                                 concept
                2. Ratio of the coffee menu to all drinks                                          17%                                            Quality
                                                                                                                                                improvement
                Of all drinks sold daily, we asked what the share of various coffee drinks                                                               47%



             includ9ing espresso and americano was. There wasnt a single shop selling             Lower cost
                                                                                                         6%

             less than 10 percent and 6 percent answered between 10~30 percent,                                          Operation Reasons of Roastery


             which the lowest. Those answering 30~50 percent accounted for half at                             Overload work             Other
                                                                                                                       23%
                                                                                                                                                                    Beans inventory
             50 percent. This means that the coffee menu accounts for about half of                                                          10%
                                                                                                                                                                     management
                                                                                                                                                                           30%
             all drinks sold. On the other hand, the fact that the coffee menu does not
                                                                                                                                                     Revenue
             surpass even half of all drinks in a roastery that does its own roasting to                                           Uniformity                 13%
                                                                                                                                    of taste
             provide fresh and tasty coffee, means that roasteries have not been able               Complaints                         17%
                                                                                                          7%
             to appeal to clients their identity as a roastery. Those who answered coffee                                Operating Difficulties of Roastery

             took up 50~70 percent of their drink menu stood at 37 percent. That is,
             only one third of roasteries are benefiting from their identity as a roastery                                            43%

             and appealing to clients as a roastery.                                                                                                     24%

                3. Ratio of hand-drip coffee to the entire coffee menu                                    13%
                                                                                                                         10%                                                10%

                In the coffee industry, we normally think of roastery coffe shop = hand-
                                                                                                         10~30         30~50          50~100        100~200               More than
             drip coffee. We investigated the actual ratio of hand-drip coffee sold to all               cups          cups           cups           cups                200 cups

             coffee drinks. The results showed that 13 percent sold less than 10 percent,                      Average Daily Sales of Cups
             40 percent sold between 10~30 percent, scoring the highest, and 17                                                 50%

             percent sold between 30~50 percent, while 13 percent sold between 50~70                                                               37%

             percent, and 17 percent sold over 70 percent.
                                                                                                                                                                            7%
                4.Ratio of coffee bean sales to total sales                                                6%

                We found out the ratio of coffee beans sales to total sales of the                       10~30%              30~50%            50~70%                     over 70%
             shops. Less than 10 percent accounted for 13 percent of respondents
                                                                                                   Contrast Between Drinks and Coffee
             and 50 percent answered 10~30 percent, meaning that the sale of
             coffee beans account for 10-30 percent of total sales for half of all                                       40%


             respondents. Next, 17 percent answered 30~50 percent and 7 percent                                                       17%                                   17%
             answered 50~70 percent. A significant number of respondents, that is                         13%                                            13%


             13 percent, answered over 70 percent. Although the sale of coffee beans
                                                                                                         10%           10~30% 30~50%                50~70%                over 70%
             has just started being vitalized in all roastery coffee shops, it is clearly
             an area of potential growth in the future.                                                  Sales Rate of Hand Drip Coffee


                                                                                                                                                                         2012         11




9-11 Survey of roastery coffee shops.indd   3                                                                                                                                        12. 04. 10   ろ 8:43

More Related Content

3. Survey Of Roastery Coffee Shops

  • 1. Korean Coffee Market 3 Survey of 100 Roastery Coffee Shops Business Management is More Difficult than Roasting The Korean coffee market is currently under a roastery coffee shop fever unprecedented worldwide. In what environment do the owners of roastery coffee shops actually manage their shops and what do they think of the current situation? To find out, Monthly Coffee conducted a survey of 100 owners of roasteries among subscribers of the magazine, members of the Specialty Coffee Association of Korea, and the list of roastery coffee shops provided by roaster selling companies. >> Basic survey of respondents Number of respondents By region By sex By age Seoul 50, Gyeonggi-do 20, 20s 7, 30s 60, 40s 27, Total 100 Gyeongsang-do 14,Jeolla-do 10, Male 87, female 13 50s 3, 60s 3 Chungcheong-do 3, Gangwon-do 43% 46% 47% 27% 27% 13% 17% 17% 20% 13% 6% 7% 10% 7% Business Office Residential Station etc 1~2 3~5 6~9 10~19 20 Less than More than 1 year More than 3 years More than 1 year Less than 3 years Less than 5 years 5 years Commercial Area Number of a Nearby Cafe Operating Experience >> General shop management 1.Where is your shop located? followed by subway station areas at 7 percent, and offices To the question where their shops are located, at 6 percent. 47 percent replied residential areas accounting for 2. What is the number of coffee shops within almost half of all. We can tell from this that most your shops 200m radius? roastery coffee shops are located in residential areas. This question was asked to find out how many This was followed by 属other属賊 such as college areas, coffee shops are located within the 200m radius areas without special commercial zones, commercial from their shops. It may differ depending on the areas or combined. Of the respondents, 13 percent commercial zone, but we can tell the degree of said their shops are located in commercial areas, competition by looking at the distribution of coffee 2012 09 9-11 Survey of roastery coffee shops.indd 1 12. 04. 10 ろ 8:42
  • 2. shops within a distance considered close enough to that the number of shop owners who started to learn be considered competing shops. For your reference, roasting in the last three years is increasing. This was coffee shops here include all whether with or without followed by 33 percent responding over 5 years and roasteries. Fast food shops whose main business 27 percent over 3 and less than 5 years, both of which is not selling coffee were excluded. According to are relatively high. Below one year was minimal at 3 the results, 43 percent responded 3~5. Those who percent. The ratios of those answering over one and responded 1~2 was relatively low at 17 percent but below three years, between three and five years, and 13 percent said between 6~9, 17 percent between over five years were similar without drastic differences. 10~19, and even 20 percent over 20. This means 4. What is the capacity of your roaster? about 80 percent of roasteries compete with more We asked the capacity of their roasters (if using than three up to 20 competing coffee shops in their more than two roasters, the sum of both). Those using neighborhood. roasters of 1kg capacity accounted for the most at 40 3. How many years of roasting experience do you percent followed by 30 percent of 3kg. This means that have? about two thirds of all roasteries use small roasters This was a question separate from the period of shop of between 1~3kg capacity. These were followed by operation because the period of shop operation is not 17 percent using roasters capable of roasting over necessarily the same as the period of their roasting 6kg and 7 percent of 10kg capacity. Only 6 percent experiences. The survey results showed that 37 percent answered using below 1kg or several roasters adding had over one and below years of experience. This means up to over 20kg. >> Level of satisfaction with the operation of roasteries What was the most difficult about running a Generally, in individual roastery shops, the owner is roastery? responsible for the roasting, extracting and providing W hatever shop one runs, there are many services as well as other detailed items. As such, they difficulties. But we asked what they found the most find the work load difficult to handle as they need difficult about particularly running a roaster y. to process and manage as the owners of the shops, Answers provided to choose from were managing the roasting schedule, shop management schedule the coffee bean stock, profit rate, uniform taste, and other items. The answer with the third largest civil complaints from the neighborhood, work load, number of respondents was uniformity at 17 percent. and other. Managing coffee bean stock had the Roastery coffee shops find it difficult to provide greatest number of respondents with 30 percent uniform taste meaning they worr y much about saying they found it difficult to measure the amount roasting itself. Other answers included low profit at of coffee bean consumption and appropriately 13 percent, other at 10 percent, and civil complaints managing the stock according to the frequency of from the neighborhood at 7 percent. Compared to roasting. The answer with the second largest number other questions, the answers were not biased toward of respondents was work load with 23 percent one but relatively diverse meaning they commonly saying that they only have one person managing feel various difficulties running a roastery which the business and having to take care of everything. requires management in various areas. 10 www.coffeero.com 9-11 Survey of roastery coffee shops.indd 2 12. 04. 10 ろ 8:42
  • 3. >> Roastery menu and sales 1.Average number of cups of coffee sold daily Usually 7% Very dissatisfied 3% This question enables indirectly finding out a shops sales. Fifty to hundred cups topped the list at 43 percent, followed by 100~200 cups at 24 Satisfied 37% Very satisfied 53% percent. Those selling 10~30 cups remained at 13 percent, and 10 percent said they sold 30~50 cups, followed by over 200 cups at 10 percent. The Operating of Satisfaction Roastery results show that when there are 10 shops selling a minimum KRW one million worth of coffee provided that the average cost of a cup is KRW 5,000, Beans for sale 30% there are over 10 shops selling around KRW 100,000 worth of coffee a day. Differentiated concept 2. Ratio of the coffee menu to all drinks 17% Quality improvement Of all drinks sold daily, we asked what the share of various coffee drinks 47% includ9ing espresso and americano was. There wasnt a single shop selling Lower cost 6% less than 10 percent and 6 percent answered between 10~30 percent, Operation Reasons of Roastery which the lowest. Those answering 30~50 percent accounted for half at Overload work Other 23% Beans inventory 50 percent. This means that the coffee menu accounts for about half of 10% management 30% all drinks sold. On the other hand, the fact that the coffee menu does not Revenue surpass even half of all drinks in a roastery that does its own roasting to Uniformity 13% of taste provide fresh and tasty coffee, means that roasteries have not been able Complaints 17% 7% to appeal to clients their identity as a roastery. Those who answered coffee Operating Difficulties of Roastery took up 50~70 percent of their drink menu stood at 37 percent. That is, only one third of roasteries are benefiting from their identity as a roastery 43% and appealing to clients as a roastery. 24% 3. Ratio of hand-drip coffee to the entire coffee menu 13% 10% 10% In the coffee industry, we normally think of roastery coffe shop = hand- 10~30 30~50 50~100 100~200 More than drip coffee. We investigated the actual ratio of hand-drip coffee sold to all cups cups cups cups 200 cups coffee drinks. The results showed that 13 percent sold less than 10 percent, Average Daily Sales of Cups 40 percent sold between 10~30 percent, scoring the highest, and 17 50% percent sold between 30~50 percent, while 13 percent sold between 50~70 37% percent, and 17 percent sold over 70 percent. 7% 4.Ratio of coffee bean sales to total sales 6% We found out the ratio of coffee beans sales to total sales of the 10~30% 30~50% 50~70% over 70% shops. Less than 10 percent accounted for 13 percent of respondents Contrast Between Drinks and Coffee and 50 percent answered 10~30 percent, meaning that the sale of coffee beans account for 10-30 percent of total sales for half of all 40% respondents. Next, 17 percent answered 30~50 percent and 7 percent 17% 17% answered 50~70 percent. A significant number of respondents, that is 13% 13% 13 percent, answered over 70 percent. Although the sale of coffee beans 10% 10~30% 30~50% 50~70% over 70% has just started being vitalized in all roastery coffee shops, it is clearly an area of potential growth in the future. Sales Rate of Hand Drip Coffee 2012 11 9-11 Survey of roastery coffee shops.indd 3 12. 04. 10 ろ 8:43