Customers crowd in front of a Paik’s Coffee branch in Jongno-gu, Seoul, on June 11." / Reporter Lee Sung-hee

On the afternoon of June 11, a note reading “Sorry, we’re on a break due to ice shortage” was taped to the self-service kiosk in front of a Paik’s Coffee branch in Jongno-gu, Seoul. At another Paik’s Coffee location about 400 meters away, a sign flatly said, “All cold drinks unavailable due to lack of ice.”

The part-time workers at these locations looked visibly exhausted. Mr. Kim, 21, crouched in a corner of the kitchen, said, “It’s not even 4 p.m. and we’ve already taken two break times,” adding, “The owner might be happy, but we’re really struggling.”

Since June 10, Paik’s Coffee has been selling Americanos for just 500 won, sparking chaos at locations across the country. The “500-Won Americano” event is part of a franchise support initiative launched by TheBorn Korea, the parent company run by CEO Baek Jong-won.

As part of this 30 billion won worth campaign, TheBorn Korea has been running brand-by-brand discount events. Paik’s Coffee previously offered 1,000-won discounts on its “Asachoo” (iced tea with espresso shot) starting May 27, and sold iced café lattes for 1,000 won from June 5 to 7. The headquarters covers the entire cost difference, aiming to ease the financial burden on franchise owners.

With lines forming out the door at many locations, the deep discount event appears to have been a success in terms of buzz and foot traffic. Passersby, seeing the bright yellow posters advertising “500 won,” often stepped inside out of curiosity. On the first day of the promotion, the Paik’s Coffee app even crashed from the surge in traffic.

Ms. Yoo, 22, a worker at one branch, said, “We usually sell over 200 iced Americanos a day, but yesterday and today, it feels like we sold three times that.” She added, “During the iced latte promotion, we had one person just clearing empty milk cartons. This time, we had someone solely responsible for scooping ice into cups.”

But not everyone is pleased. Some passersby remarked, “This is like a death sentence for other small business owners,” raising concerns that nearby independent cafés may suffer losses.

Indeed, online communities for small business owners have been flooded with criticism of the promotion. One café owner operating across from a Paik’s Coffee branch wrote, “It’s 3 p.m. I usually make over 300,000 won by now, but today it’s just 50,000 won.”

Critics also point out that the “500-Won Americano Craze” may backfire, harming not just nearby businesses but Paik’s Coffee itself.

One café owner explained, “If you keep brewing coffee nonstop, the temperature and pressure of the coffee machine’s boiler drops, affecting the quality,” adding, “Baristas also lose consistency in tamping pressure and focus.” In other words, overwhelming numbers of customers may compromise the flavor and quality of coffee.

On social media, many posts are expressing concern for overworked Paik’s Coffee staff. Some read, “Please don’t go to the OO branch. Boycott it, please,” while others show support, saying, “I’m not going to visit a Paik’s Coffee store. I feel bad for the part-timers.”

There are also concerns that the campaign will be a “short-lived success.” While the heavy discounts may temporarily draw customers, some argue it is not a sustainable strategy for supporting franchisees.

Professor Kim Dae-jong of Sejong University’s School of Business said, “CEO Paik is likely offering this extreme discount as an apology for recent controversies,” adding, “Instead of short-term promotions, the company should provide more practical support like covering interior renovation costs or allowing franchisees to source supplies independently.” He emphasized, “Theborn Korea needs to take genuine responsibility and help franchisees survive in the long run.”