Wednesday 07 December 2022

Taiwan: Starbucks upbeat on growth

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Taiwan’s top coffee shop operator, President Starbucks Coffee Corp, said its newly launched brunch products might help increase the number of customers by 10 percent each year.

President Starbucks has provided breakfast offerings for 10 years, attracting about 7.18 million customers annually, the company said, adding that revenue from breakfast-related products accounts for 30 percent of total revenue.

The breakfast market is still booming and is expected to reach NT$200 billion (US$6.26 billion) per year, the company said.

According to the company’s market research, Taiwanese usually have breakfast between 8am and 9am, which is the traditional peak hour for coffee shops. However, an increasing number of customers have begun to prefer having breakfast at between 9am and 11am, especially on weekends.

Hoping to attract those customers, the company late last month launched five new brunch items aimed at housewives, office workers and single people.

The research also found that customers have varying needs for brunch, with some preferring take-away products for convenience, while others enjoy spending more time at coffee shops.

The company said its new products were developed with those varying needs in mind — one brunch set was designed for picnics, so customers could enjoy their salads and sandwiches where ever they wanted.

President Starbucks launched a concept store last month, as well as pop-up stores and exhibitions at Huashan 1914 Creative Park as part of its marketing efforts.

The concept store, which is to operate through the end of this month, includes a coffee bar, coffee farm and coffee room, where ustomers can enjoy limited-edition flavored drinks from branches all over the nation.

It is expected to draw more than 80,000 visitors before it closes.

President Starbucks, a joint venture by President Chain Store Corp and Uni-President Enterprises Corp, reported revenue of NT$8.5 billion for last year, with net profit totaling NT$827 million, or earnings per share of NT$23.

Kuo Chia-erh

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