SEOUL, Nov. 24 (Korea Bizwire) — Self-employed café owners are struggling to deal with increases in the price of raw materials such as milk and coffee beans.
The number of coffee shops that were closed in the first half of this year in Seoul stood at 1,239, according to data from the Seoul Metropolitan Government.
If this trend continues, chances are high that the number of closed cafés will set another record this year, surpassing the previous record of 1,969 in 2021.
Coffee shops are popular among those looking for a way to become self-employed, since operating one requires no special technique, license or administrative approval. In the first half of this year, 2,587 new cafés opened in Seoul.
However, small owner-operated cafés are experiencing severe financial pressures this year amid an across-the-board increase in inflation.
Unlike franchise cafes that purchase in advance a large quantity of coffee beans at an interval of one year, small owner-operated cafes typically place small orders from wholesale retailers, thereby shouldering a higher burden.
Lina Jang (email@example.com)