EDIYA COFFEE, a low-cost coffee rival to Starbucks, has raised its coffee prices since its founding, reaching around 3,200 won as of 2026.
Mega MGC COFFEE, on the other hand, has emerged as a representative of low-cost coffee.
Starbucks is currently priced higher, EDIYA is mid-priced, and MGC is mid-priced.
MEGA MGC COFFEE is a coffee franchise with roots in Princess Cafe Anhouse, founded by Ha Hyun-woong, and shaved ice chain Pasiya.
[Princess Cafe Anhouse]
From the 2000s to the early 2010s, the princess-style cafe Anhouse gained popularity, featuring floral fabric sofas, matching wallpaper, pink curtains creating a private space, and glamorous chandelier lighting.
Anhouse was a cafe restaurant that offered cafe menu items such as cherry coke, frappes, and cakes, as well as a wide selection of Western dishes such as tonkatsu and kimchi fried rice.
Anhouse had been run by Ha Hyun-woong since around 1996, but in 2010, the company Anhouse was established and franchised.
Anhouse gained popularity for its unique, cozy interior, spacious stores, and diverse menu, leading to franchising.
By early 2010, the number of franchise stores had expanded to approximately 60.
As the number of franchise stores increased, it became increasingly difficult to operate stores offering 250 different menu items.
Furthermore, at the time, Ediya Coffee was gaining popularity through its low-price strategy, rivaling high-end coffee franchises like Starbucks.
Furthermore, private rooms require more space than a typical open cafe, and each room requires more effort to clean and maintain.
As rent and labor costs in Korea skyrocketed in the 2010s, this "low turnover, high cost" model became less profitable.
So Mr. Ha began to seek a business transformation.
[Shaved Ice Brand "Pasiya"]
At the time, dessert cafes offering a modern take on the traditional "patbingsu" (red bean shaved ice) were becoming an explosive hit in Korea.
As Anhouse's private cafe model was reaching its limits, Mr. Ha attempted to shift from a "sell space" model to one that "competed on a strong product."
He launched the shaved ice brand "Pasiya."
Instead of the traditional crunchy ice, he used milk ice that melted in the mouth like powdered snow.
He used traditional Korean ingredients such as red beans cooked in a pot, soybean flour, and rice cakes, and presented them in a "cafe-style" presentation popular with young people.
The interior also moved away from Anhouse's "princess-style" design, adopting a modern, natural design that evoked the warmth of wood.
This would later influence the store design of Mega Coffee.
It's said that offering shaved ice, a menu item whose photogenic appeal is crucial, laid the foundation for the flashy drink menu (like ice cream and frappes) that would later become explosively popular at Mega Coffee.
Faced with the challenge of shaved ice not selling well in the winter, he keenly felt the need for a strong drink lineup that would sell all year round.
This led to Mega Coffee.
[MEGA COFFEE]
At one point, his franchise numbers exceeded 100, including Anhouse and Pasiya, but he decided to change the business model.
CEO Ha Hyun-woong conceived a cafe brand with simplified store layouts and launched Mega Coffee in 2015 with a strategy of cost-effectiveness, small stores, and easy access.
Ha opened his first store in a back alley (approximately 55 square meters) in Hongdae.
Hongdae is a student town centered around the arts university Hongik University.
For fashion-conscious yet purse-conscious students, the mega coffee concept of "a giant coffee for 1,500 won" was just what they were looking for.
Street dancing and singing, known as "busking," is a common sight, and the area is bustling 24 hours a day.
In addition to chain stores, the maze-like alleys are packed with quirky independently owned cafes, live music venues, and vintage shops.
Their flagship product is a large 24-ounce (approximately 710 ml) Americano for 1,500 won (approximately 170 yen).
Despite using premium Arabica beans, they maintain low prices through a low-margin, high-volume sales strategy.
Their stores are small and primarily takeout-oriented, with kiosks (automatic ticket vending machines) used to thoroughly reduce labor costs.
They also constantly release visually appealing drinks, smoothies, and desserts.
Not content with being just a cheap coffee shop, they've introduced a series of flashy drinks that are sure to make you want to share them on social media like Instagram.
We paid particular attention to making the drink look "luxurious," with uniquely shaped ice cubes, heaping servings of whipped cream, and colorful Ade (carbonated drinks).
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