Luxury brand Bacha Coffee to launch first Korean store in July

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Luxury brand Bacha Coffee to launch first Korean store in July

Published: 25 Jan. 2024, 17:40 Updated: 25 Jan. 2024, 17:46

SEO JI-EUN
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Bacha Coffee, often likened to the "Hermès of coffee," is set to open its first store in Cheongdam-dong in July following Lotte Department Store's acquisition of its exclusive franchise and distribution rights in Korea. [LOTTE DEPARTMENT STORE]

Moroccan heritage brand Bacha Coffee is entering Korea through a partnership with Lotte.

Lotte Department Store announced Thursday that it has acquired the exclusive franchise and distribution rights for Singapore-based Bacha Coffee, a brand often likened to the "Hermès of coffee."

The first offline store in Korea is set to open in July in the posh Cheongdam-dong area in southern Seoul. Lotte said it plans to open additional stores through various channels, including department stores.

"The location choice for Bacha Coffee is aimed at enhancing its appeal as a standalone provider of luxury experiences, moving beyond as a typical offering found inside department stores," explained an official from Lotte Shopping.

Amidst a plateau in domestic department store growth, Korea's department store operators are eyeing the Food and Beverage (F&B) business as a potential growth avenue. With the slowdown of post-Covid-19 consumer spending impacting high-end fashion sales, the focus is shifting toward prominent F&B establishments to attract the younger Millennials and Gen Z.

Lotte Department Store CEO Chung Joon-ho spearheaded the negotiation with Singapore's V3 Gourmet Group, Bacha Coffee's operator, for 18 months.

In a similar vein, Hanwha Galleria, the operator of Galleria Department Store, procured the domestic business rights for U.S. burger brand Five Guys, also orchestrated by Hanwha Galleria's head of strategic management, Kim Dong-sun.

Bacha Coffee currently operates 18 stores in nine countries, including Singapore, Morocco, France, Hong Kong and the UAE. For Koreans, the coffee brand is often considered a popular gift choice among travelers visiting Singapore for its unique branding.

BY SEO JI-EUN [[email protected]]