Twosome Place will open its first store in Alexandria, Virginia, this October as part of its strategy to enter the U.S. market. The company aims to compete with local brands in the mainstream café sector by promoting its pairing culture of coffee and desserts, which has been validated in South Korea.
On September 3, Twosome Place held a press conference at the Conrad Seoul in Yeouido, where CEO Moon Young-joo and Vice President Kim Shin-young outlined the company's global business strategy, including the rationale for entering the U.S. market, its competitive approach, and future plans.
The first U.S. location will be situated in Old Town Alexandria, a premium commercial area adjacent to the Potomac River, known for its concentration of high-end fashion and food and beverage brands. Twosome plans to use Alexandria as a base to expand into the D.C. and Maryland areas, known as the 'DMV' region, before moving into major cities like New York, New Jersey, Pennsylvania, Boston, and Atlanta. The company is also considering expansion into other global markets, including Japan.
Twosome aims to directly compete with local café brands, including Starbucks, and establish itself as a brand that appeals to a broader audience beyond just the Korean community.
The decision to enter the U.S. market comes as Twosome recognizes the limitations of growth focused solely on domestic expansion. With approximately 1,750 stores in South Korea, further openings have become challenging due to franchisee protection issues. As a result, the company is concentrating on same-store sales growth domestically while seeking new growth opportunities abroad. In fact, Twosome's same-store sales growth rate has increased from 0.3% in 2023 to 6.9% in 2024, and 7% last year.
Vice President Kim Shin-young stated, "The U.S. is the largest market, and we believe that success here will provide strong momentum for future expansions into other regions. While there are many cafés in the U.S., we are confident that our pairing culture can compete effectively."
One of Twosome's key offerings will be its 'Korean-style cake.' Unlike American cakes, which are rich and sweet, Twosome's cakes feature lighter flavors using whipped cream, mousse, and fresh fruit. The company has received positive feedback from local consumers during taste tests, noting that the Korean-style cakes are perceived as "healthier and more sophisticated."
The menu will include signature items such as 'Schoosang' (Strawberry Chocolate Cream Cake), along with options like icebox cake, red velvet, and tiramisu. The company plans to adjust flavors and sizes to cater to local tastes, offering larger versions of Schoosang to meet the preferences of American consumers.
Additionally, Twosome will introduce local-exclusive menu items that incorporate Korean elements, such as 'Seoul Blend' coffee developed in collaboration with local roasteries, as well as dishes featuring dalgona, black sesame, injeolmi, misugaru, and plum, alongside deli items like bulgogi bibimbap.
The first U.S. store will also feature operational changes. Recognizing that local café sales peak in the early morning and that 'all-day cafés' are on the rise, Twosome will adjust its opening hours. The entrance will showcase a cake display, and the interior will feature lighting reminiscent of traditional Korean rafters and octagonal tables.
Prices will be set 10-20% higher than in South Korea, reflecting local labor and ingredient costs. This pricing is expected to be slightly above that of local Starbucks, aligning with the price range of premium all-day cafés that are currently growing in the U.S.
Twosome has been testing products with local consumers and establishing supply chains and logistics since deciding to enter the U.S. market about two years ago. The store design for international markets has also been validated domestically, with the 'Gangnam 2.0' store near Sinnonhyeon Station serving as a prototype to assess operational processes.
Initially, all U.S. locations will be operated directly through a local subsidiary, with plans for more than 15 stores. Opening a single store in the U.S. is expected to require an investment of approximately 1.5 to 2 billion won, indicating a significant financial commitment. Once the direct operations stabilize and profitability is achieved, the company will consider expanding through franchising.
CEO Moon Young-joo emphasized, "It is not easy for a new brand to succeed in a new market. Initially, it is crucial to operate directly to firmly establish the brand in the U.S. market. Our first task is to ensure we have sufficient resources and investment to make Twosome a major brand in the U.S."
* This article has been translated by AI.
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