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SEOUL — “A Cafe Latte is 4,300 won, and there is a separate 200 won charge for the cup.”
Small business owners running cafes are expressing deep frustration over the government's proposed "Separate Cup Pricing System" (also known as the Cup Price Labeling System). While the government intends to increase transparency regarding the environmental costs of disposable items, business owners fear immediate consumer backlash and a heavy administrative burden.
Transparency vs. Reality
The Ministry of Climate, Environment, and Energy (MCEE) announced the policy as a key initiative for 2026 during a presidential briefing last December. The system requires cafes to split their menu prices into two categories: the "content price" (the beverage itself) and the "cup price."
An official from the MCEE stated on Monday, “We have visited major cafe locations and listened to industry feedback. We are currently working with the Ministry of SMEs and Startups to design the specific regulatory framework.” Although legislative changes are required—meaning full implementation may take time—the industry is already on high alert.
The Burden on Small Business Owners
The primary concern for café owners is the friction it creates with customers. "Even if the total price hasn't changed, I will have to explain to every single customer why we are charging for the cup separately," said 'A', a private cafe owner in Seoul. "Once again, it feels like small business owners are the ones suffering to implement the government's environmental policies."
Critics also point out the impracticality of uniform labeling. Since cup sizes, the amount of ice, and the types of cups (take-out vs. in-store) vary significantly by shop, a flat separation of prices could mislead consumers. "It is unrealistic to label a drink filled mostly with ice and a drink filled with liquid as having the same 'content price,'" an industry insider noted. "This policy shows a lack of understanding of how cafes actually operate."
Financial and Operational Hurdles
Beyond customer service, the logistical costs are daunting. Implementing the system requires:
- Replacing physical menus.
- Updating Kiosk and POS (Point of Sale) software.
- Modifying price listings on delivery apps.
For independent owners already struggling with high bean prices, rising labor costs, and rent, these additional expenses are a significant blow. In the case of franchises, there are concerns that the costs of system upgrades at headquarters will eventually be passed down to the individual franchisees.
Equity Issues: Why Only Cafes?
A major point of contention is the equity gap between cafes and convenience stores. Convenience stores sell massive quantities of disposable cups through ice coffees and fountain drinks, yet they currently face no such price labeling requirements.
Addressing this, the MCEE admitted the challenge: "Convenience stores have a structure that makes transitioning to multi-use cups difficult. We are focusing on cafes first because they can immediately reduce waste through tumbler use, but we are discussing supplementary measures to address fairness and cost burdens."
As the government moves forward, the industry warns that this "environmental regulation" may ironically trigger a wave of price hikes across the coffee sector to cover the new administrative overhead.
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