There is no doubt that Caffe Bene is the largest franchise among local chains in Korea. Nevertheless, it does not seem to be the most favorite coffee stores for coffee lovers anymore as other franchises have overtaken lots of its market share.
According to Caffe Bene, the company marked 120 million won losses as of the third quarter last year. In accordance with this, Choi Seung-woo, CEO of Caffe Bene, said, “I hear a lot of complaints the taste of Caffe Bene coffee is getting worse.” In a press conference held on March 28 in Caffe Bene’s Apgujeong Galleria shop, he started his remarks with the ongoing controversy about the unpalatable taste of coffees served in its stores.
He said, “We have focused too much on increasing the number of shops only by spending too much on celebrities to promote ourselves, while losing the taste of coffee, the core competitiveness of a specialty coffee chain.”
He added, “We failed to ensure our affiliated coffee stores have consistency in taste, which led to disappointing results for us. Some detractors even said this is the end of Caffe Bene.”
Since its opening in April 2008, Caffe Bene has expanded the number of coffee shops up to 1,000 in five years, widening its lead over other rivals such as Starbucks and Ediya, as the nation’s largest coffee chain.
Despite its outstanding growth in terms of the number of outlets, consumers have shunned Caffe Bene, complaining that its coffee is not as good-tasting as before while charging the same high prices as any other specialty coffee houses.
Choi said, “We ranked No. 1 in terms of brand awareness but hovered at No. 5 in terms of brand preference. To reverse this trend, we will place top priority on improving the taste of our coffee.”