Starbucks Korea reclaims coffee market lead after 5-month slump

Starbucks Korea has reclaimed its position as the leading coffee chain in the market after a five-month slump, according to data released by IGAWorks on Sunday. The coffee chain's estimated credit and debit card spending reached 121.08 billion won ($90.1 million) in September, marking a 4.3% increase from August. This surge propelled Starbucks ahead of its rival, Twosome Place, which saw its card spending drop to 110.5 billion won in September, down 6.4% from August.

The recovery for Starbucks began in July when its estimated card spending rose for the third consecutive month, reaching 110.06 billion won. It then continued its upward trajectory, climbing to 116.12 billion won in August and surpassing the 120 billion won mark in September for the first time since the downturn. Prior to this recovery, Starbucks trailed Twosome Place for four consecutive months, with its card spending declining by 13.13 billion won to 121.19 billion won between April and May.

The turnaround for Starbucks comes after a marketing controversy that sparked consumer backlash. The controversy involved a promotion that referred to May 18, the anniversary of the 1980 Gwangju Democratization Movement, in a manner deemed inappropriate by many South Korean consumers. This incident led to a significant drop in Starbucks' card spending, which bottomed out at 100.39 billion won in June before gradually recovering.