Domestic coffee brands are turning their attention to overseas markets. As the domestic market reaches saturation and recognition of K-food rises, these companies are positioning overseas expansion as a new growth breakthrough.

Lotte GRS announced on the 25th that Angel-in-us, the coffee franchise it operates, signed a master franchise (MF) agreement on the 24th of this month with Boga Group, an Indonesian company specializing in distribution and F&B.

This contract is part of Lotte GRS’s global business expansion strategy and reflects its intention to make Indonesia a new strategic stronghold. Indonesia, with a population of about 270 million, is the world’s fourth most populous country after India, China, and the United States. With its massive domestic market, Indonesia is growing as a core market within ASEAN and possesses growth potential in the Southeast Asian market. Through this agreement, Lotte GRS aims to open its first store within this year and operate 10 stores over the next five years.

Other major coffee brands are also accelerating the expansion of their overseas presence. Ediya Coffee strengthened its push into Southeast Asia by opening its first store in Vientiane, the capital of Laos, on the 8th of this month. This move follows its expansion into Guam, Malaysia, and Canada. A Twosome Place is pursuing entry into the U.S. mainstream market.

Low-priced coffee brands are also aggressively entering global markets. Mega MGC Coffee opened its first store in Ulaanbaatar, Mongolia, in May 2024, launched its eighth store there this March, and is currently working on entering Cambodia. Compose Coffee, after opening its first store in Singapore in 2023, has steadily increased its local outlets and now operates three stores. In April this year, it also entered Taiwan for the first time.

In the case of The Venti, it opened its first store in Amman, the capital of Jordan, in January this year. After making its initial entry into Canada last year, it has also opened stores in Vietnam and is planning to expand into the United States in the second half of this year. Paik’s Coffee is preparing to open its first store in Tokyo, Japan, this month, with plans to open a second store in Japan within the year. At the same time, it is keeping the door open to potential entry into major markets such as China, Taiwan, and the United States.

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