Just over 1,000 coffee shops went out of business last year, reflecting the nation’s coffee franchise market in a saturated state, data showed Wednesday. 

According to local corporate tracker CEO Score, the total number of franchisees in Korea hit 87,540 as of the end of last year. The survey was based on a list of 118 franchise brands registered at the Korea Franchise Association. 

Among them, 11,198 were coffee and beverage chains -- the third largest number following convenience stores and fried chicken restaurants -- but they saw 8.5 percent being closed, data showed. 

The market has become even more crowded as convenience stores such as 7-Eleven offer 1,000 won (90 cents) coffee, about one-fourth the cost of a Starbucks cup.

As of last year, there were 15,052 cafes in Seoul, including chains and stand-alone cafes. 

Starbucks Coffee Korea, a 50-50 joint venture between the US coffee chain and retail conglomerate Shinsegae, runs over 1,000 stores here, which are all directly managed by its Korean headquarters.

Other local coffee chains have responded to growing competition by cutting back on store numbers and staff alike amid struggling business. 

Cafe Droptop, a local coffee shop brand launched in 2011, currently runs 240 outlets as of 2018. 

Caffe Bene, which grew to 805 stores in just four years from its founding in 2008, applied for court protection earlier this year after struggling in business and overseas ventures.

Caffe Bene expanded quickly after entering China in 2012. At its peak, it had more than 600 stores in China and set a record for opening 200 outlets in a single year. In recent years, however, it has run into trouble after expanding too fast and due to poor management. 

“While restaurants and even convenience stores are adding coffee on the menu to sell, the coffee war is intensifying as now even offices own espresso machines,” said Lee Kyung-hee from the Korea Business Strategy Institute. 

By Kim Da-sol (ddd@heraldcorp.com)