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Will Starbucks Korea be the first to launch in-store kiosks?

Published: 16 Apr. 2025, 07:00

CHO YONG-JUN
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A Starbucks store in central Seoul [NEWS1]

Starbucks Korea is considering the introduction of electronic self-order kiosks in its stores by the first half of this year, potentially becoming the first country with kiosks at the coffee giant's stores.

“We are currently considering introducing kiosks to branches with a lot of foot traffic by the first half of 2025,” Starbucks Korea told the Korea JoongAng Daily on Monday, adding that no further details, including which specific stores will have the electronic machines, were decided as of press time.

Local media outlet the Kukmin Ilbo reported on April 11 that Starbucks Korea will install kiosks at its Myeong-dong branch in Jung District, central Seoul, in May, making it the first Starbucks branch in the world to have a kiosk.

The report said that the franchise initially planned to introduce kiosks last year, but was delayed due to the vast number of customization options Starbucks has for its drinks, adding that the kiosks will also be introduced in branches “with a lot of foreigner foot traffic” and branches that might have a lot of guests that face a language barrier.

While the coffee franchise offers machine-based services in hotels and offices, titled We Proudly Serve Starbucks, alongside self-service kiosk machines, electronic kiosks that automate the ordering and payment process with a barista still brewing the coffee have yet to be introduced at the franchise.

Starbucks is known for valuing the interaction between baristas and customers as a means of enhancing the customer experience. The cafe and its franchise stores around the world have retained the experience of in-person ordering and sharing names or nicknames with the staff. Baristas will then call out that nickname upon making the drink — a “symbol of a warm welcome” and a part of the “Starbucks Experience,” according to the firm’s global website. U.S. branches have also resumed the tradition of handwriting customer names on the cup, a touch that was scrapped during the Covid-19 pandemic, according to a CNN report in January, to bring back the Starbucks “vibe.”

But SCK Company, the operator of Starbucks owned by Emart, has been introducing new features to the country that are distant from the classic Starbucks “vibe” of the U.S. headquarters — but perhaps more akin to the needs of the Korean customers. In 2014, it introduced Siren Order, its app-based ordering system that surpassed 500 million orders as of last year, which was followed by Starbucks stores in other countries, while last year, it introduced coaster pagers in larger Starbucks branches or stores with two or more floors for a more streamlined drink pickup procedure. Korean Starbucks stores also designate and call customers an alphanumeric order number, which is less common in other countries.

Starbucks Korea’s strategies to differentiate itself to a degree relate to its operating body, SCK Company. Formerly known as Starbucks Coffee Korea, the Emart subsidiary is solely responsible for the operation of Starbucks in Korea. The U.S.-based Starbucks Corporation, which originally had a 50 percent stake in the company, sold all its shares to Emart and Singapore’s GIC sovereign wealth fund in 2021.

SCK Korea, with around 2,000 branches around the country, recorded 3.1 trillion won ($2.18 billion) in revenue last year, while operating profit rose from 139.8 billion won to 190.8 billion won the same period.

BY CHO YONG-JUN [[email protected]]