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1 Aug 2012

K-Econ Analysis

Manufacturing industry/ Beverage Industry : Premium Coffee Shops

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Overview
- Over the last four or five years, premium coffee shops have been a business of interest in Thailand, with continued expansion due to the growing popularity of coffee drinking among Thais. More Thai consumers are beginning to drink coffee for fun and pleasure, and the infusion of western culture has played a major role in increasing demand for premium coffee.
- Premium coffee shops depend on location. They should be located in places frequented by the target customers, such as office buildings or service stations. They must be decorated for atmosphere and offer good service as well as coffee of consistently high standards.
- At 80 to 150 THB (2.40-4.60 USD) per serving, premium coffee is more expensive than other coffees. The quality of the coffee is thus paramount, so that consumers will not feel that drinking quality coffee in a pleasant atmosphere is too expensive.
- Premium coffee shops may be either international franchises or Thai based. International franchises hold about 60 percent of the market and local-brand shops about 40 percent.
- There are currently four models of premium coffee shops: coffee corner, quick restaurant, coffee corner and snack bar, and booth. The coffee corner model offers coffee as the main item, supplemented by snacks. Quick restaurants are premium coffee shops offering restaurant-style services in order to expand their target population of customers to include families. Coffee corner and snack bar shops offer coffee and bakery goods; these shops have moved into office buildings. Booths, or small coffee shops, sell fresh coffee together with other drinks. The booth model evolved from the ordinary small coffee shops that may be seen in any community.
- The categories of premium coffee shop customers have grown from business persons and tourists to include working-age persons, now the principle target population. Students are increasingly patronizing these shops as well.

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K-Econ Analysis