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Taiwan coffee shop chain set for US expansion

June 17, 2010

Taiwanese coffee shop chain 85C Bakery Cafe is hoping to win over American consumers with its iced sea salt lattes, squid-ink buns and other unusual pastries, National Public Radio in the United States recently reported.

Building on the success of its first U.S. branch, which opened in Irvine, California one and a half years ago, 85C plans to open a second shop in the sunshine state’s Hacienda Heights later this year.

“Our sea salt lattes are really unique,” said Stephanie Peng, manager of the Irvine shop. “The sea salt is in the foam part, so it just brings out more coffee essence.”

This tasty coffee creation has also helped 85C to earn the nickname of “Starbucks of Asia” and to establish a presence outside its home market.

In fact, leading U.S. magazine Time and cable news channel CNN have both featured reports on this rising star in the brewed coffee market. Time pointed to 85C’s competitive prices, noting that its coffee and snacks cost half as much as those at Starbucks Corp. outlets.

Among the inexpensive treats on offer at 85C is ink-squid bread made with Vermont cheddar cheese and garlic paste. At less than US$1 per roll, the price alone is enough to entice American customers to give this strange-looking treat a try.

Peng, a native of Taiwan who grew up in Orange County, California, noted that when the store first opened, most of the customers were Asians. Currently, more than half of the patrons are non-Asian.

One customer recalled how the long lines at the store when it first opened its doors made her decide against trying it out. “Now, here I am. I do the line every day,” she said.

Peng pointed out that besides freshly brewed coffee, her store also offers nearly 70 different types of bread and some 50 varieties of cakes and pastries. Fresh bread and sweet snacks are constantly coming forth from the kitchen during the shop’s business hours from 7 a.m. to 8 p.m. or 9 p.m. every day, she added.

In 2009, the shop’s revenue amounted to the equivalent of more than NT$200 million (US$6.2 million), and its income last month alone surpassed US$600,000.

Julia Huang, chief executive officer of a firm that tracks trends among the Asian population in the United States, said 85C has won favor and high regard among U.S consumers. She said the reason for this is American tastes for sweet snacks have changed tremendously in the past four or five years. “Now, they like to try every type of new flavor,” she added.

85C already has more than 300 stores around Taiwan, and it plans to expand its presence in China, Australia and the United States over the next few years. (SB)

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