South Korea joins the coffee shop with the shortest life! On average, it closes down for more than two years!
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Which chain industry is the most short-lived to join? In South Korea, the answer is a coffee shop, with an average lifespan of only 27 months, or less than two and a half years.
South Korean chain owners have an average survival time of 52 months (four years and four months), with pharmacies averaging more than 11 years (133.6 months), according to data released by the South Korean government on the 24th.
Shops that do not join and operate independently have an average opening time of more than seven years (88.9 months), while coffee shops can last an average of about three and a half years (43.3 months).
Yonhap news agency reported that the data show that it is not easy for coffee shops to operate in South Korea whether they join or not, because Starbucks has a dominant position in the Korean market. The South Korean coffee market had 11.7 trillion won ($10.4 billion) last year, and Starbucks has more than 1140 stores in South Korea, with an estimated turnover of 1.2 trillion won last year.
A survey in South Korea found that joining a store to sell coffee closes for an average of more than two years.
Compared with this, the business duration of non-chain enterprises is relatively long, with an average of 88.9 months. In terms of industry, stationery stores were the longest, with 155.5 months, followed by laundries (154.2 months) and drugstores (152.9 months), while coffee shops also ranked last with 43.3 months.
The average number of staff per chain store is 3.7 and that of non-chain stores is 2.3. The total sales are 273 million won and 141 million won respectively. From the perspective of enterprise size, small-scale chain stores and large-scale non-chain stores have higher operating income.
From a regional point of view, the operating income of the capital circle is generally higher than that of the non-capital circle, but the overall operating profit is lower because of its higher operating costs. The report suggests that entrepreneurs should decide a reasonable investment scale after fully considering the sales, operating profits and entrepreneurial areas of each industry before investing.
Part of the article reference: Yonhap
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