Inside the Jaksim Study Cafe in Gangnam, Seoul. In this quiet space, with its wooden desks and indirect lighting, customers sit in comfortable chairs, absorbed in self-improvement studies or work.
Jaksim Study Cafe, which opened its first store in Cheongju in 2016 with a mere 2 million won, now operates over 50 directly managed stores. Simultaneously, it has opened hundreds of franchises nationwide, placing it at the top of its industry rankings. What strategies has Jaksim used to secure its competitive edge? We met with its CEO in Gangnam-gu to learn the secrets to its success.
Adult-focused premium strategy: A breakthrough amidst an overheated market.
"The biggest trial and error I've ever faced was oversimplifying demand forecasting. I started with the hypothesis that 'if a space is good, customers will naturally come,' but in reality, I had to meticulously design for the rhythm of the commercial district, the intended use by different age groups, and even the preferences for seating, lighting, and noise levels."
While acknowledging the industry's current overheating and slowing profitability, the Gangnam-gu representative explained Jaksim's unique differentiation strategy. "Jaksim has positioned itself as a premium learning and work hub, focusing not on students but on adults and working professionals. The percentage of adults in our newly directly-operated stores has recently reached 85-92%, significantly exceeding the network average of 64%."
This goes beyond simple study spaces, and is the result of catering to the needs of adults who stay for long periods of time for work or self-development. Analysts say that by capturing the adult self-development and work needs that compete with cafes, they have relatively avoided the direct impact of market saturation.
According to him, his survival strategy boils down to two axes. First, he optimized his fixed cost structure through unmanned operations and standardized operating manuals, lowering his break-even point. Second, he established a stable sales structure centered on long-term customers, leveraging the long-term stays and high loyalty of adult customers.
The reason for insisting on direct management: "Operational data is our competitive edge."
It is clear why Jaksim takes a different path from the typical franchise expansion.
"This is so that headquarters can directly verify and manage brand quality and profit models. Direct operation requires significant capital and management burdens in the short term, but it has the advantage of accumulating operational data directly at headquarters."
He explains that numerous variables, such as seating configuration, spatial flow, lighting and noise environment, and customer group characteristics, can be tested and standardized in actual stores.
The Gangnam-gu representative emphasized, “By reducing fixed costs through an unmanned operation system and increasing management efficiency with a standardized service manual, we can maintain consistent service quality even as the number of directly managed stores rapidly increases to 50.”
"There's a world of difference between solely franchising and operating a large number of direct stores. I've come to respect Starbucks even more since they've been operating a direct-management model." Going forward, Starbucks plans to maintain direct management in key commercial areas, but also utilize proven partnership models as it accelerates expansion.
Barrier-free accessibility with the unmanned system 'Picco'
One of Jaksim's distinguishing features is its self-developed unmanned access/operation system, Pickko. "We initially encountered issues with card recognition and app integration, but we stabilized the system by establishing 24-hour monitoring and remote patching."
Picco's strength lies in its integration of payment, seating, membership, and security functions into a single SaaS platform. "Operational data accumulated at individual branches is accumulated at headquarters, and this data is used to analyze seat utilization, customer usage patterns, and repeat visit rates, ultimately driving long-term operational improvements."
We are also considering improving accessibility.
"We agree with the growing public debate about introducing barrier-free kiosks. We plan to sequentially implement features like voice guidance, Braille stickers, auxiliary keypads, and low-profile designs. We will create an environment where customers of all ages and socially disadvantaged groups can use our kiosks without inconvenience."
“We don’t believe unmanned systems will completely replace people,” said the Gangnam-gu representative. “Instead of automating repetitive and simple tasks, our headquarters is improving service quality through remote customer support and system updates.”
Bodleian Motive Rebranding: "Precise Implementation of a Focused Environment"
Jaksim's rebranding project, inspired by the Bodleian Library at Oxford University in the UK, is also attracting attention. "It wasn't just a simple interior change; it redesigned the entire customer experience, encompassing spatial flow, lighting, noise, signage, and even the storyboard. The key was figuring out how to more precisely create a 'focused environment.'"
After the renewal, we observed a trend of increased proportion of adult customers, longer stay times, and a clear strengthening of preference for long-term tickets.
"We're seeing the effects of the rebranding in that our customer base has shifted from students to adults and working professionals."
Regarding concerns that the premiumization strategy could raise the barrier to entry, he responded, “Under the principle of ‘reasonable premium,’ we are maintaining a more reasonable hourly rate than cafes, while strengthening additional facilities such as massage chairs, lounges, and stylers to position ourselves as ‘spaces worth investing in,’ compared to regular cafes.”
Full-scale overseas expansion, exporting K-study culture
Recently, Jaksim's global expansion has been in full swing. He defined overseas expansion as "not simply exporting stores, but rather optimizing the models and data Jaksim has verified through direct operations to suit local conditions."
We're currently receiving inquiries from countries like Taiwan, Vietnam, and Japan, and CEO Kangnam-gu highlighted Mongolia as a particularly promising market. "With the concentration of people in the metropolitan area and intense competition for university admissions, there's a clear demand for long-term learning spaces," he explained. "Taiwan and Hong Kong are already seeing established trends in adult self-development and lifelong learning, making them a strong fit for our adult-centered model." He added, "We're accelerating our global expansion through overseas branch offices."
The localization strategy adjusts seating configuration, lighting, and noise standards to suit the lifestyle patterns of each country, while applying the space design and operation database directly verified by the headquarters.
Social value and sustainable profit structure
Jaksim never neglects social contribution alongside growth. He participated in the Pyeongchang County Education Gap Reduction Project from its design stage, and through the "The Dream Scholarship" program, he has provided educational services worth over 7 billion won to over 250 students over nine years.
"We don't have any separate performance indicators or ROI. The very fact that our space contributes to the community and youth gives our members a sense of pride, which in turn leads to service quality and brand trust."
In terms of profitability, the Gangnam-gu representative explained, "It's not about the short-term performance of individual branches, but about the overall brand structure and operating assets." "Excluding monthly rent, management fees, electricity, and minimum labor costs, the majority of our profits are actually profit-generating. Securing a stable profit margin is more important than simply achieving top-line sales."
He said, "The long-term conversion structure of the adult customer base is a key factor in increasing sales stability and predictability."
“The rate at which new users move from short-term trial memberships to long-term memberships within a certain period of time is steadily increasing.”
Regarding the outlook for 10 years from now, the Gangnam-gu representative stated, “Study cafes will not be in the same form as they are now.”
"Jaksim is evolving offline spaces into an online and offline advertising platform targeting self-directed learners."
We have already developed and launched new space models, such as Jaksim Lounge and Jaksim Office. We also operate Jaksim Ad, a space media advertising platform. In this way, Jaksim is expanding beyond its learning space business into diverse areas, including advertising, offices, and lounges.
I rather see the spread of online learning as an opportunity.
"I believe the need for study cafes is actually growing, as many adult customers are looking for a physical space where they can focus while taking online classes."
One unchanging principle remains: the philosophy of providing the best value for time to those who want to focus. "As long as we adhere to this principle, the brand's direction will remain unwavering, even amidst market changes and crises," said CEO Kangnam-gu.
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