According to TodayKorea’s coverage on the 9th, several value-focused coffee franchises, including Compose Coffee and Mega MGC Coffee, have been rolling out meal-replacement food items.
Mega Coffee, which has been experimenting with cup tteokbokki and cup bingsu, began test-selling the "MGCne Seasoned Cup Chicken" at its company-run stores on the 25th of last month.
Customers praise the item for its generous portions and reasonable price, and the chain plans a nationwide launch on the 12th of this month.
Compose Coffee’s "Chewy Bunmoja Tteokbokki," released last month, reportedly sold more than 140,000 units within two weeks, drawing strong demand.
The item has also generated positive buzz on social media.
On the company’s official account, commenters wrote things like, “It’s sold out — I’ll wait for the next batch,” and “It’s so good; please keep this on the menu.”
Industry analysts say budget coffee shops typically operate on a high-volume, low-margin model, so expanding food offerings appears to be a strategic move to shore up profits. Because these chains compete on price, they have limited flexibility to absorb rising production costs.
An industry source told TodayKorea, “Having simple food items gives customers another reason to visit and increases their choices. I think budget coffee brands are expanding into ready-to-eat categories to boost store competitiveness.”
Observers also point to market saturation — driven by an increase in store counts — as another factor pushing brands to diversify into prepared foods.
According to national data, the number of coffee shops in South Korea reached 107,055 last year, a 19.1% increase from 89,892 in 2020.
Among them, the four major budget chains — Mega MGC, Compose, Paik’s Coffee, and The Venti — grew from 3,150 stores in 2020 to 10,782 in 2025, an increase of roughly 242.3%.
An industry insider told this outlet, “As coffee shops proliferate, individual locations need stronger ways to stand out. For that reason, non-coffee menu items can meaningfully boost a store’s competitiveness and sales.”
However, some worry that broadening ready-to-eat menus could dilute a café brand’s identity.
One regular customer of budget coffee told us, “Sometimes my coffee is delayed because the person ahead of me ordered a food item. With more menu options, staff get busier, and occasionally the coffee quality dips. If budget chains focused more on coffee itself, I think their reputation would improve.”
