The value-focused coffee chain has signed a master franchise agreement with Asia Pharma for its overseas debut and will open at the Mongolian pharmaceutical company’s Ulaanbaatar headquarters on 30 May 2024.
South Korea’s Mega Coffee will make its international debut on 30 May 2024 with a store in Ulaanbaatar, Mongolia.
The value-focused chain has signed a master franchise contract with Mongolian pharmaceutical company Asia Pharma, which will open a first Mega Coffee outlet on the first floor of its headquarters.
Mega Coffee, which reached 3,000 domestic stores in May 2024, follows fellow South Korean coffee chains Caffebene, Tom N Toms Coffee and TOUS les JOURS in opening in Mongolia.
The business cited Mongolia’s growing South Korean expat population and deepening economic ties between the two countries as a key drivers behind the move.
Nearly half of Mongolia’s 3.4 million population reside in the capital Ulaanbaatar. Mega Coffee said the city is expected to be a ‘promising hub to cultivate profit and business growth’ and a catalyst for further outlet expansion across Asia.
“While there are no concrete plans to open additional stores in other locations yet, we are considering further expansion into other regions in Asia and in America, with the experiential know-how gained through the Mongolian operation,” a Mega Coffee spokesperson said.
World Coffee Portal’s Project Café East Asia 2024 report shows the total Mongolian branded coffee shop market comprises 150 outlets. Caffebene is the market leader with 38 stores ahead of domestic chain Jur Ur House & Bakery and Tom N Toms Coffee, which have 33 and 32 sites respectively.
The Mongolian branded coffee shop market is forecast to reach 200 outlets by the end of 2028.
Source: World Coffee Portal
