Starbucks payment volume drops over $7.5 million after 'Tank Day' controversy

Starbucks has seen a significant drop in payment volume in South Korea, with weekly transactions falling to approximately 21.4 billion won between May 25 and May 31. This represents a 9.4% decrease from the previous week and a substantial 33.3% decline, amounting to about 10.7 billion won, compared to the week before the "Tank Day" controversy erupted on May 18.

The controversy, which prompted Shinsegae Group Chairman Chung Yong-jin to issue a public apology, appears to have had a lasting impact on the coffee giant's sales. The sharp decrease in payment volume indicates that customers are spending considerably less at Starbucks following the incident.

Beyond payment volume, Starbucks' mobile presence has also been affected. New app installations dropped by 7.4% to 34,240 in the week of May 25-31, and the number of weekly active users fell by 5.8% to 3.85 million. These figures suggest a broader customer pullback, with fewer people engaging with the Starbucks app and fewer new users joining, indicating a potential erosion of customer loyalty and engagement in the South Korean market.