Wait, why is Starbucks suddenly open until 10 p.m.?

Starbucks Korea has begun extending store hours and offering steep discounts as competition in the coffee market heats up due to the rise of low-cost rivals.

A Starbucks store in Seoul on Feb. 12 [YONHAP]

Starbucks Korea has begun extending store hours and offering steep discounts as competition in the coffee market heats up due to the rise of low-cost rivals.

"We will expand operating hours at about 80 percent of the 2,000 stores nationwide until 10 p.m. by mid-May as we have seen an increase in customers during late hours," a Starbucks spokesperson said Sunday. “We will gradually extend operating hours across most locations, excluding some in shopping malls, where business conditions differ.”

Starbucks typically operated stores from 7 a.m. to around 10 or 11 p.m., but it shortened hours during the Covid-19 pandemic.

Many branches currently close by 7 or 8 p.m., with some staying open until 10 p.m. The company now plans to standardize closing times at 10 p.m. for the majority of stores.

The brand has also launched aggressive promotional campaigns. One of the most notable is the expanded “One More Coffee” promotion, which offers a 60 percent discount on a second cup of select drinks when customers return the same day.

If a customer buys a tall Americano for 4,700 won ($3.3), they can get a second one for 1,880 won. An additional 400 won discount applies when using a personal cup, bringing the price close to those of budget brands, whose Americanos typically cost between 1,500 won and 2,500 won.

A Starbucks store in Seoul on Feb. 12 [YONHAP]

The “One More Coffee” event was initially limited to select members. But after strong demand, Starbucks made it available to all customers starting April 23.

Another promotion, the “Evening Event,” offers up to 50 percent off on decaf or caffeine-free beverages ordered after 5 p.m., particularly when purchased with cake.

Starbucks is also expanding its digital and delivery services in addition to its pricing strategies.

The company recently began providing delivery through Coupang Eats after launching on the app Baemin last year,

Industry analysts say the shift reflects Starbucks’ effort to improve profitability amid mounting pressure from discount competitors.

Starbucks Korea, operated by SCK Company, recorded 3.1 trillion won in annual revenue last year, surpassing the 3 trillion won mark for the first time.

But its operating profit margin remained below prepandemic levels, falling to 6.1 percent in 2024 after hovering around 10 percent until 2021.

Budget coffee chains such as Mega MGC Coffee and Compose Coffee, meanwhile, continue to expand rapidly.

Ann House, which operates Mega Coffee, saw a 26.5 percent year-over-year increase in revenue last year, reaching 496 billion won.

It ranked third in sales after Starbucks and A Twosome Place, but its operating profit margin stood at 21.7 percent — more than triple Starbucks’ figure.

“The general view in the industry is that Starbucks has entered a period of stabilization in terms of both revenue and store expansion,” an industry official said. “That’s why we believe the company is now actively moving to compete with lower-cost brands.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY HWANG SOO-YEON [paik.jihwan@joongang.co.kr]