Mega MGC Coffee opens 4,500th store in Miryang, putting existing franchise territories in focus

Mega MGC Coffee has reached 4,500 stores with the opening of its Miryang City Hall branch in Miryang, South Gyeongsang Province, South Korea. The milestone comes roughly ten months after the chain passed 4,000 stores in late November last year. The company, which has built the largest store network in South Korea’s coffee franchise sector, has stressed that further expansion will involve catchment-area analysis that considers existing franchisees’ trading territories, as well as reviews of individual store profitability. The opening marks another expansion milestone, but also provides an opportunity to examine the franchisor’s stated commitment to protecting existing outlets.

From the first Hongdae café to the 4,500th store in Miryang

Operator MGC Global announced the opening of the Miryang City Hall branch on 2 October 2026. An opening ceremony held the previous day was attended by MGC Global chairman Kim Dae-young, branch franchisee Kim Il-han, head-office staff and other representatives. At the event, the company reiterated its commitment to working with franchisees for mutual benefit.

Mega MGC Coffee opened its first café in Hongdae, Seoul, in 2015. It subsequently passed 1,000 stores in 2020 and 3,000 in 2024, before reaching 4,000 in late November 2025. The Miryang City Hall opening marks its next expansion milestone, roughly ten months later. ChosunBiz reported that 500 stores were added during that period.

These milestones demonstrate the growth of the nationwide store network. However, no sales figures or operating results have been announced for the newly opened Miryang City Hall branch. As this is news of an opening, its performance should neither be assumed to match the existing franchise average nor judged in advance.

A notable aspect of the announcement is that the company did not present scale alone as its objective. Mega MGC Coffee said individual store profitability was a key criterion for new openings. The 4,500-store figure should therefore be read alongside its policy on where future outlets will open and what assessments will precede them.

Catchment-area analysis that considers existing franchise territories

Mega MGC Coffee explained that it analyses catchment areas with existing franchisees’ trading territories in mind when assessing new outlets. Its stated focus is on maintaining existing stores’ sales and profitability while expanding the network. This is the company’s position on balancing franchise recruitment with the operation of established outlets.

For prospective franchisees considering a rapidly expanding brand, this policy is an important point to check. Rather than deciding solely on the availability of a proposed site, they should ask how the franchisor assesses its relationship with nearby existing branches. This means testing the company’s published principles during actual franchise discussions.

Existing franchisees have similar questions to ask. If an additional outlet is being considered nearby, they can request an explanation of the process for taking their trading territory into account and how the catchment-area findings will be communicated. This does not mean the announcement included a specific protected radius or a separate compensation scheme. Publicly stated policies and individual contract terms need to be examined separately.

The company’s explanation alone does not establish that territorial protection has been effective at every store. Equally, an increase in openings is not in itself evidence that existing outlets’ performance has deteriorated. For those following the franchise sector, the key question is less whether expansion is inherently positive or negative than how the stated analytical principles are applied to individual sites.

Assess average franchise sales and head-office results separately

According to the franchise disclosure document filed with South Korea’s Fair Trade Commission and cited by Maeil Business Newspaper and ChosunBiz, Mega MGC Coffee franchise outlets recorded average sales of KRW 412.87 million in 2025. This was a 6.3% increase on the previous year. The company said sales per store had risen by around 18% compared with three years earlier. Alongside network expansion, the reported sales indicators also showed growth.

Average sales, however, are not the same as an individual outlet’s net profit. This figure should not be used directly as a sales forecast for the Miryang City Hall branch, nor interpreted as showing that every franchise achieved the same results. During franchise discussions, the brand average is a useful starting point, but the costs and operating conditions of the proposed outlet should be assessed separately.

Head-office results are another distinct measure. According to Maeil Business Newspaper, MGC Global’s revenue rose by 30.4% year on year to KRW 646.9 billion in 2025, while operating profit increased by 3.5% to KRW 111.4 billion. These figures reflect the operator’s business performance, not the sales of a single franchise outlet or its owner’s income.

The company cited franchisee profitability as a factor behind its expansion. However, growth in average franchise sales and growth in head-office operating profit measure different things. Even when reviewing both indicators, it is important not to use one as proof of the other. Anyone considering a new franchise agreement should examine sales projections and costs separately.

Stronger marketing and R&D must be considered at store level

Mega MGC Coffee said it would continue to prioritise sustainable earnings for franchisees and increase investment in marketing and research and development. Its product activity includes seasonal drinks and new desserts, alongside collaborations involving intellectual property such as characters and K-pop artists.

ChosunBiz reported that the company uses its nationwide network to distribute collaborative products and content and encourage customer visits. The announcement indicates a strategy that combines a large store network with product development and marketing. It should not, however, be confused with quantified evidence of how much individual collaborations have contributed to store sales or profits.

For franchisees and prospective business owners, a practical question is what preparation these activities require at store level. Rather than focusing only on the publicity surrounding a new product or collaboration, they should ask head office about the terms for stocking and selling it and the operational preparations required, then assess these against the circumstances of their proposed outlet. This brings the announced marketing plans into an operational context.

The opening of the 4,500th store is a clear sign of Mega MGC Coffee’s continued expansion. The next assessment should go beyond the size of its network. In practical terms, the priority during franchise discussions is to request catchment-area analysis that takes existing franchise territories into account, and to review average sales alongside the proposed outlet’s expected costs.