The Rise and Fall of Korean Coffee Franchises

Kang Hoon, the influential Coffee King, founded multiple coffee brands but faced downfall due to business imbalance and market evolution.

### The Coffee Entrepreneur Who Shaped the Industry in Korea
Kang Hoon, also known as the Coffee King, played a key role in founding major coffee franchises in Korea, including Starbucks and Hollys Coffee. After initially being involved in the launch preparations for Starbucks in Korea, he took the bold step of starting his own franchise, Hollys Coffee. Kang Hoon co-founded Hollys with Kim Do-kyun, but their differing management styles led to the eventual sale of the business to CJ Planet.

### The Turbulent Journey of Cafe Bene's CEO
Cafe Bene's CEO, Kang Hoon, faced multiple business failures after leaving Hollys Coffee and then unexpectedly joined Cafe Bene in 2008. The cafe was founded by Kim Seong-geon, who lacked experience in the industry and brought in Kang Hoon for his expertise, leading to significant disagreements between them. Despite Kang Hoon's suggestions, the first branch of Cafe Bene opened in Cheonho-dong instead of Gangnam, resulting in lower than expected performance.

### The Growth of Cafe Bene Through Strategic Partnerships and Celebrity Marketing
Cafe Bene experienced significant growth after forming a strategic partnership with IHQ, expanding from four to over a thousand stores in a few years. The cafe's success was driven by celebrity marketing, offering discounts to aspiring entertainers, and providing VIP cards to affiliated celebrities. However, despite its rapid expansion, the brand's profitability declined, and its coffee quality was criticized.

### Kang Hoon: The Entrepreneur Behind Cafe Bene and Mango Six
Kang Hoon left Cafe Bene to start his own coffee empire after feeling dissatisfied with his small share of the business. He used the funds from selling his stake to launch Mango Six, using a strategy of setting up stores in prime locations with famous celebrities as models. By aggressively selling franchise rights and leveraging his connections with celebrities, he quickly expanded Mango Six to 100 franchise locations within two years.

### Struggles of Mango Six Coffee Franchise
Mango Six faced a drastic drop in revenue from 2014 to 2016, leading to store closures and struggling franchisees. The CEO's attempt to launch a new low-cost brand led to intensified disputes and resentment among existing franchisees. The company also faced challenges with logistics supply and payments to partners, further worsening its situation.

### The Tragic Downfall of CEO Kang-Woon
CEO Kang-Woon's company faced a complete supply cut-off, financial arrears, and legal management procedures, leading to his tragic suicide. His downfall was attributed to focusing too much on outward expansion and neglecting the internal aspects of the business. As a pioneer of third-wave coffee franchises, Kang Hoon's decline serves as a reminder of the challenges of maintaining success in a changing market.

### The Rise and Fall of Kang Hoon: A Coffee Franchise Empire
* ☕ Kang Hoon, known as the "Coffee King," founded the first espresso coffee franchise in South Korea, Hollys Coffee, in 1998 after being part of the **Starbucks project team** at Shinsegae Department Store.
* 💼 After selling Hollys Coffee for about 4 billion won in 2003, Kang Hoon joined Cafe Bene in 2008 as the head of the business division, playing a key role in its **rapid growth through celebrity marketing and strategic partnerships**.
* 🚀 Cafe Bene's aggressive expansion strategy led to it surpassing **1,000 stores by 2013**, becoming the **largest coffee franchise in Korea**, although its **profitability and coffee quality** were widely criticized.
* 📚 In 2011, Kang Hoon left Cafe Bene and founded Mango Six, using a similar strategy of **opening stores in prime locations** and **leveraging celebrity marketing**.
* 📉 However, the oversaturated coffee franchise market and seasonal nature of Mango Six's concept led to a **drastic decline in revenue**, from **28.2 billion won in 2014** to **10.6 billion won in 2016**.
* 💸 Facing financial difficulties, Kang Hoon attempted to launch a new low-cost brand called Coffee Six Juice in 2016, but **disputes with franchisees and supply chain issues** further worsened the situation.
* 🔚 Kang Hoon's company entered legal management procedures in 2017, and tragically, he **passed away by suicide** just one day before the official announcement.
* 📝 The story of Kang Hoon's rise and fall serves as a cautionary tale about the challenges of **sustaining success** in the competitive coffee franchise industry, highlighting the importance of **adapting strategies to changing market conditions**.

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카페베네 1,000개 매장이 1년만에 망해버린 진짜 이유 - 커피왕이 저지른 결정적인 실수

카페베네 1,000개 매장이 1년만에 망해버린 진짜 이유 - 커피왕이 저지른 결정적인 실수