Mega MGC Coffee construction spotted in New York, sparks online buzz [Unboxing]

Mega MGC Coffee, South Korea's top low-price coffee franchise, is entering New York. The company is expanding its overseas business to the United States, Japan and Hong Kong, following earlier moves into Mongolia and Cambodia.

Industry sources said Thursday that images of Mega MGC Coffee's construction site in Manhattan, New York, have been circulating on TikTok, Instagram and other social media platforms. The company is preparing to open a store there. A sign on the site's exterior wall reads, "Flatiron Store Coming Soon."

The store's location is near the Flatiron Building, one of New York's iconic architectural landmarks. The area is a key New York commercial district crowded with tourists and young foot traffic. It is home to Madison Square Park, Shake Shack, the Lego Store and the Harry Potter store. Paris Baguette and Tous Les Jours — K-bakery brands that entered the US market earlier — also operate stores nearby.

The store is likely to follow a strategy similar to its domestic operations. It is expected to target young local consumers with a large-portion, low-price takeout model and trendy menu items that quickly reflect K-food and K-dessert trends. Given the brand's frequent collaborations with popular artists, marketing aimed at K-pop fans is also expected.

However, MGC Global, which operates Mega MGC Coffee, said, "The New York expansion has not been confirmed. We are actively considering overseas expansion, but we cannot disclose specific countries or timelines."

Mega MGC Coffee, which leads the industry with nearly 4,500 domestic stores, began its overseas push in 2024 with its first store in Mongolia. The number of stores in Mongolia has since grown to eight. This year, the company entered Cambodia through a master franchise agreement and plans to open five stores there by the end of the year.

Additional expansion plans are also taking shape. The company is reportedly set to open a store in Hong Kong's Central district in October. It is also pursuing entry into Japan, having laid the groundwork last year by establishing a local subsidiary, Mega MGC Japan.

The saturated domestic coffee market is cited as a key reason Mega MGC Coffee is looking abroad. The number of coffee shops in South Korea has surpassed 100,000, meaning roughly one in seven restaurants is a cafe. Rising cost burdens and a slowdown in consumer spending have also played a role.

Rival Compose Coffee has already entered Singapore and Taiwan. The Venti is pushing into the US market after expanding to Canada, Vietnam and Jordan. Paik's Coffee, currently operating in Japan and the Philippines, is exploring entry into Taiwan, China and the US next year. Twosome Place is also reportedly set to open a store in Alexandria, Virginia, near Washington, D.C., in October.