Ediya Coffee falls from first to third by franchise outlet count: rankings reshaped from 2021 to 2024

The rankings of South Korea’s coffee franchises by number of franchised outlets have changed. Ediya Coffee, which led with 3,005 outlets in 2021, fell to third place with 2,562 in 2024. Over the same period, Mega MGC Coffee and Compose Coffee each more than doubled their franchise outlet counts, overtaking Ediya. The notable point is not simply the change at the top, but the contrasting directions in which these major brands’ franchise networks have moved.

Ediya loses 443 franchised outlets as two budget brands overtake it

According to reports published by the Kukmin Ilbo and EToday on 24 September 2026, Park Sung-hoon, a People Power Party MP on the National Assembly’s National Policy Committee, released an analysis of changes in outlet counts and sales at major coffee franchises, using data submitted by the Korea Fair Trade Commission. The comparison covers 2021 and 2024. The reported rankings therefore reflect the 2024 figures, not the live store count at the time of publication in 2026.

Ediya Coffee’s franchise outlet count fell from 3,005 to 2,562 between the two reference years. Based on the published figures, that is a decline of 443 outlets, or approximately 14.7%. It led by franchise outlet count in 2021, but ranked third behind Mega MGC Coffee and Compose Coffee in 2024. Its loss of the top spot reflects both the expansion of competing brands and a contraction in its own franchise network.

Mega MGC Coffee took first place with 3,325 outlets, an increase of 1,732, or 108.7%, over the same period. Compose Coffee added 1,364 outlets to reach 2,649, an increase of 106.1%. Both brands more than doubled their franchise outlet counts during the comparison period, in clear contrast to Ediya Coffee’s decline.

In 2024, the gap between Mega MGC Coffee and Ediya Coffee was 763 outlets. The gap between Compose Coffee and Ediya was 87. Both figures are calculated by subtracting the reported outlet counts. While Ediya’s ranking fell, its distance from the market leader was quite different from its distance from the brand immediately above it. Looking at the actual outlet counts alongside the rankings gives a clearer sense of the scale of the change.

A fall in outlet numbers is not the same as a closure count

The first distinction to make when interpreting these results is between a reduction in franchise outlet numbers and the number of closures. Ediya Coffee’s decline of 443 is the difference between its outlet counts in the two reference years. The reports provided do not give a breakdown of new openings, contract expiries, contract terminations or similar changes during the period. There is therefore no basis for describing the figure as ‘443 stores closed’.

Nor does the decline alone establish that the brand pursued a particular business strategy. The data does not explain whether Ediya Coffee moderated its expansion, which regions lost outlets or how individual stores were performing. Assessing the brand’s response or the reasons for the decline requires evidence beyond these figures. What is established is that its franchise network became smaller and its ranking fell over the comparison period.

Equally, the increases at Mega MGC Coffee and Compose Coffee should not be read as the number of new openings during the period. The figures show the increase in franchised outlets between two points in time. They do not separate openings from outlets ceasing operations, so they cannot show how much turnover there was within each network. They are useful for comparing network growth, but do not explain every aspect of store operations.

For those evaluating coffee franchises, these distinctions have a direct bearing on discussions with franchisors and assessments of brands. Outlet count indicates the scale of a brand’s franchise network. However, where stores operate, how long they remain in business and how much revenue each generates all require separate checks. In particular, national rankings should not be treated as evidence of competitiveness in a specific local market or of an individual outlet’s performance.

Outlet rankings do not establish sales rankings

The reports provided also include average annual sales per franchised outlet for Mega MGC Coffee and Compose Coffee. Mega MGC Coffee’s figure rose by 10.7%, from KRW 202.5 million in 2021 to KRW 224.1 million in 2024. Compose Coffee’s increased by 0.8%, from KRW 178.86 million to KRW 180.3 million over the same period. Growth in outlet numbers and growth in average annual sales are different measures and should be read separately.

However, the reports provided do not include average annual sales per franchised outlet for Ediya Coffee. It is therefore not possible to say whether its sales per outlet were higher or lower than those of the other two brands. Nor can a decline in outlet numbers establish that sales at the remaining stores also fell. Changes in network size and the trading performance of individual outlets are separate questions.

Revenue is also not the same as a franchisee’s profit. The reported sales figures are not accompanied by information on individual stores’ costs or net profits. Sales growth alone should therefore not be used to calculate potential returns or the likelihood of recouping an initial investment. News of a change in outlet rankings is a starting point for comparing brands, not a conclusive measure of a franchise’s profitability.

The reshuffle shows that the expansion of budget coffee brands has changed their scale relative to the former market leader. However, the data provided does not establish whether consumers switched from one brand to another, or how much price influenced their choices. The change in outlet numbers is clear, but its causes have not all been demonstrated.

Check the reference year and local data when considering a franchise

Prospective franchisees should first ask what any ranking cited during franchise discussions actually measures. In this case, the measure is the number of franchised outlets, and the comparison is between 2021 and 2024. Presenting it as a current store count or a sales ranking would go beyond the scope of the source data. Simply checking the metric and reference year can help you assess claims about a brand’s scale more accurately.

The next step is to review national figures separately from data for your intended location. Useful information to request includes the local franchise network, records of openings and outlets ceasing operations, and sales and costs at comparable stores. These are practical due-diligence items to fill gaps in the evidence, not findings established by the reports discussed here. A national ranking cannot answer these questions for you.

In practice, the key is to assess ‘first by franchise outlet count’ separately from ‘how the store I operate will perform’. Ediya Coffee’s fall in the rankings and the expansion of the other two brands are established changes. When considering a franchise agreement, you should combine those findings with up-to-date information and the operating conditions in your intended local market.