On Sep. 11, Starbucks opened a new branch on the first floor of CBNU First Student Hall (E3). Installation of external restaurants was one of the pledges made by President Koh Chang-seop during the 22nd presidential election in Jan., 2023. However, a total of only five cafes (four COOBNU and one COOBNU-STAR) are operated in campus. The first COOBNU store, which had been located on the basement level of the Gaesin Cultural Center (E2), closed on Sep. 25 in accordance with university policy decisions.

  Starbucks’ CBNU campus branch opened in early Sep., but it has already dealt a big blow to COOBNU’s sales. According to CBNU Cooperative, sales of the 3rd COOBNU located on the first floor of the Science and Technology Library (S1-7) decreased by 27%, 5% at the 4th COOBNU located on the first floor of the Central Library (N12), and 14% at the 5th COOBNU located on the first floor of the CBNU Sports Center during Sep. 12 to Oct. 17. The chairman of CBNU Cooperative, Professor Cho Soo-won from the Dept. of Plant Medicine commented, “During the previous consultation, it was decided to open a Starbucks in the law school (N2). CBNU Cooperative agreed to this proposition because the location near the main gate ensured fair competition with the business district around campus. This was a very important consideration for the cooperative because it could be convenient for outsiders to use it, and additional income would be generated during the vacation. At this point, however, as the chairman, I did not expect the Starbucks location to change. Moreover, competing with COOBNU in this prime location in the First Student Hall (E3), and being an outside company on campus just does not look good. In addition, it definitely has an unfair advantage over COOBNU in terms of centrality and visibility.”

  However, according to the data received in the disclosure claim, an official from the CBNU finance department responsed, “There was no separate discussion on the location of the new cafe. The location for new cafe was decided and promoted in a manner congruent to policy. There is a context relating to policy-level relocating of the Career and Employment Office of Student Affairs to the library section and thereby promote the welfare of students and faculty members by diversifying and upgrading food and beverages on offer on campus.” 

  In addition, President Koh said, “I would like to tell you first that the cafe’s location has been confirmed from the first planning stage because of the former policy of relocating the Career and Employment Office, and it is used the most by students. It was carried out without any conflict by fully sharing the progress, such as the location of the store and the timing of the opening with CBNU Cooperative.” He aims to create a culture in which outsourcing companies and CBNU Cooperative provide better services and coexist through competition in good faith.

  In this situation, CBNU Cooperative was devising a separate plan prepared by COOBNU to solve this problem. Prof. Cho, “We have to contest the price aspect of COOBNU, but unfortunately, we cannot change the prices because we cannot compete with corporate low-cost coffee businesses. We have lowered prices as much as we could. Since Aug., we have increased the capacity of beverages, especially americano and iced americano from 14 ounces to 16 ounces and changed the basic shot to 2 shots. In addition, as a price cutting strategy, the price of ice americano was even reduced by 100 KRW and tea was reduced by 500 KRW. Originally, we had a temporary discount event during midterm and final exams, but we changed our policy to offer constant discounts. We clearly offer a better price advantage compared to Starbucks, but Starbucks has a solid foothold in beverage brands. For this reason, we are focusing on what COOBNU does for students to provide them options at maximum discounted prices wherever possible and to develop things that Starbucks does not have. For example, we are trying to make ice cream with high-quality milk and ice cream toppings such as Fruitful Strawberry Jeans, Fruitful Mango Jeans, and Chocolate Brownie & Syrup. Morever Ice cream Latte Floats that Starbucks does not have.” Also, he said, “COOBNU can move faster to follow trends than Starbucks, so we try various things like Ah-shot-chu (adding shots into peach iced tea) and we will strive for better service.”

  Another big problem that arose when Starbucks opened a branch on campus is the jeopardy of part time employment offered to CBNU students. In the past COOBNU was able to employ students as part timers, but the number of employees is bound to decrease as sales diminishes, he said, “Many employees were directly hired by the CBNU Cooperative and they were supported by the school, but given the school’s non-active support and the cooperative’s deficit, it is inevitable that far fewer students will be employed.”

  According to a recent CBT survey of students at CBNU from Oct. 9 to 15, 72.6% (249 students) of 343 respondents chose Starbucks. 26.1% (65 people) like the Starbucks brand itself, 24.9% (62 people) prefer the taste over COOBNU, and 14.5% (36 people) prefer the variety of drinks and desserts. On the other hand, 27.4% (94 students) chose COOBNU. 57.4% chose it because of the price, 16% because it is run by the school, and 12.8% because of accessibility.

  In addition, 76.7% (263) of respondents gladly accepted the opening of Starbucks on campus. On the positive side, the reaction to the new Starbucks included “More rational and better choices from the consumer’s point of view,” “Better value for money than COOBNU” and “It used to be an exclusive market for COOBNU, but now there is a competitive structure which will benefit the consumer.” On the other hand, 23.3% (80 people) who did not approve said, “High-priced Starbucks is not appropriate for students who are the majority of customers, and it makes more sense to open low-cost coffee franchises on campus.” Some also argue that “It is another convenient and superior facility for students, but in reality Starbucks is likely to be used by faculty, staff and local residents more than students.” Meanwhile, some respondents, who are skeptical about private companies stepping onto campus, said “The attraction of Starbucks only holds a temporary advantage due to outsiders, but actually far from creating an atmosphere for students’ welfare or study.” Moreover, several respondents pointed out that the direction of supplementing and reorganizing COOBNU, such as how to create an original menu unique to COOBNU, would be a smart choice for our school.

  Finally, due to the ensuing deficit, the CBNU Cooperative decided to close the Coop Sports Shop in the sports center. In addition, the bookstore located in the basement of the Gaesin Cultural Center will be reduced in size and the CBNU Cooperative Office/Post Office/Student Committee Office will be relocated.

  Prof. Cho emphasized the need for strong support and active use of the cooperative during these challenging times. Given the uncertain future of COOBNU, it is important to consider whether opening a Starbucks will be beneficial for our schools and students in the long term. This has become a crucial matter and the outcome remains to be seen.