Budget coffee franchises in Korea are adjusting their prices as coffee beans become more expensive worldwide. Compose Coffee, one of the top three budget coffee chains in Korea, will raise its prices on Thursday, and other chains are expected to follow.
While premium coffee brands like Starbucks have already increased their prices, this marks the first time a budget coffee franchise has done the same. The price hike comes as the cost of globally popular coffee beans reached record highs late last year.
Starting Thursday, Compose Coffee will raise the price of its Ice Americano from 1,500 won ($1.24) to 1,800 won. The price of Decaffeinated Ice Americano will increase from 2,500 won to 2,800 won. Other menu items at the franchise will remain at their current prices for now.
This is the first price increase since Compose Coffee was founded in 2014.
The company explained that the price hike is due to rising global coffee bean prices. Last month, the price of Arabica beans, the type commonly used by coffee shops, reached over $3.60 per pound. This is nearly double the price from last year, which was $1.95. When the price hit $3.44 in December in New York, it surpassed the previous record-high of $3.38, set in 1977.
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