The emergence of modern western-style chains is changing not only the look and feel of Asia's coffee culture, it is also changing consumer attitudes and drinking habits, writes Gigi Onag
Today’s trendy coffee houses, ensconced in smart office buildings and malls across Asia’s dynamic capital cities, are a favourite chill-out place for urban professionals on their morning and afternoon breaks. Often, these coffee houses – with their comfy sofas, free wifi and designer brews – serve as mini-offices where colleagues brainstorm their latest projects and executives hammer out business deals.
Starbucks’ entry into Asia in 1996, with its first store in the high-fashion Ginza district in Tokyo, brought the West Coast US-style café vibe into the region and made coffee-drinking hip not only among the smart and affluent set but also among young Asians who were losing interest in their traditional local coffee shops.
The Seattle-based chain has expanded its presence in the region in the last 15 years to include mainland China, Taiwan, Hong Kong, Singapore, the Philippines, Malaysia and Thailand, to name just some.
Its presence has helped Asian chains, which embraced the concept of the modern café, to thrive and develop in their respective markets; and in turn, these home-grown coffee houses help accelerate the change in the local coffee culture.
A changed attitude
Raymond Tong, chief executive of Hong Kong-based chain Pacific Coffee Company, observes that coffee drinkers in the city have a broad set of criteria in selecting which coffee house to patronise.
“Consumers no longer go for a cup of coffee simply because of the coffee itself. They are looking for a hang-out place to meet with friends. It’s their second home or their second workplace,” he says. “Coffee consumption is not just about the quality of the brew, it is now a holistic lifestyle approach. Small details, from the coffee house’s ambience – like music – to different value-added facilities, such as free reading materials, free internet and wifi services, are also being taken as key factors when it comes to the customer’s choice of coffee house.”
But it goes even further than that. “Nowadays, value for money is not sufficient and this consumer demand does not only apply to the product but the overall service offering. With the increasing trend of consumers making Pacific Coffee their second workplace to conduct business meetings, we introduced a mobile phone charger service, installed more electricity sockets at our coffee houses, and added LAN ports to allow customers to connect their laptop to the internet,” Tong adds.
This June, the chain started giving 20-minute free wifi service to members of its loyalty programme. Pacific Coffee was established in the territory in 1992 and this year marked the opening of its 100th store in Hong Kong. It has taken its brand overseas with outlets in Macau, mainland China, Singapore and Malaysia.
Tong says that Hong Kong’s position as an international business hub has helped his company to successfully grow roots in the city despite its people’s deep history of drinking tea. The presence of a large expatriate community who were familiar with the coffee culture that emerged in Seattle – the inspiration behind Pacific Coffee’s conceptualisation – was largely instrumental in the initial success of the company. Its international clientele had a huge impact in introducing an appreciation of a western-style coffee house experience to the local population.
“A lot of Hong Kong people have adopted this western style of coffee drinking as a lifestyle,” Tong notes, adding that a lot of the Cantonese coffee drinkers are trend-conscious, middle-class urbanites who are well educated and have a relatively high income. He also points out that the city’s traditional morning routine of tea-drinking has fallen by the wayside, specifically among these young working professionals. “It has been replaced by the grab-and-go of coffee and bakery. This is especially obvious in the younger working population of Hong Kong.”
Tong points out that Hong Kong’s native residents’ knowledge of the finer details of coffee blends remains a work in progress. “They are still relative novices. Brews that have a lighter and sweeter flavour, such as cappuccino and latte, are preferred over the typical ‘cup of Joe’ straight-brewed coffee.”
Carrie Shum, brand manager for Hong Kong at high-grade coffeemaker Nestlé Nespresso, agrees that coffee drinkers in the territory are not as adventurous with their choice of brews, with the local preference veering towards milk-based coffees, such as latte, cappuccino and latte macchiato. She notes however that the local market is showing serious interest in premium coffee. “They look at coffee the way sommeliers look at wine. They are serious about what they are drinking and they have an interest in exploring what kinds of blend they are drinking.”
Nespresso in Hong Kong is doing its share of coffee education, running a Gourmet Coffee Class for its Nespresso Club members to learn about the different types of Grand Cru coffee that the company offers. The class also provides an opportunity to introduce different coffee-based recipes like latte macchiato or hot-iced vanilla coffee to its club members.
“We also run a ‘Recipe of the Month’ campaign in our boutiques,” says Shum. “On the first Wednesday of each month, we introduce one special coffee-based recipe. Customers are welcome to find out how to prepare the recipe by visiting our boutiques any day during the month.” Shum views the presence of the trendy coffee chains as a positive development. “There are various options in the market to suit different customers’ needs. Together, we boost the coffee culture to a higher level.”
Meanwhile, it also takes more than a cosy ambience and extra amenities like free internet access to get the city’s local residents to patronise today’s modern cafés, according to Tong. In a place where people love to eat, a coffee house’s food offerings play an important role in attracting these customers.
“Added offers are crucial in getting customers’ support; a variety of food choice to complement the drink offer is already a must in enriching the coffee-drinking experience,” Tong says.
Maturing tastes
In Kuala Lumpur, where a well-entrenched coffee culture – with its kopi and kopitiams (local coffee shops) – has been in place for decades, the modern café has found its place in the community. “Coffee shop visitation in Malaysia has increased since 2007,” says Adi Fisfaisal, a Starbucks store manager and coffee ambassador. Starbucks has 117 stores across the country, making it convenient for time-pressed people to take a moment to enjoy their daily caffeine fix. According to Fisfaisal, an average coffee drinker in Kuala Lumpur visits a coffee house and spends quality time there at least twice a week.
One significant change that he has noticed over the years is the maturing tastes of local palates and the way customers are developing strong preferences. “The awareness of getting good coffee has definitely increased,” he says. “In the past, people generally just drank it the way vendors prepared it for them. People now have preferred ways to enjoy their daily cup.”
The rapid growth of local chains in the country also helps in updating Malaysia’s coffee-drinking experience, presenting a big challenge to the Seattle-based company. “Coffee drinkers now have more choice,” Fisfaisal says. “Furthermore, due to government initiatives in promoting local products, Malaysians are also supportive of local coffee. Big chains need to be innovative in coming out with new products that suite the locals’ tastes.”
Fisfaisal is not alone in his observation that Starbucks is facing more intense competition in Asia from local home-grown chains. “Recently, we have seen a lot of competition,” says Kate Joo, assistant store manager of Starbucks in the Sogong store in downtown Seoul. “Customers have a lot of new options, from espresso beverages to hand-drip coffees.”
Quoting recent news reports in the local media, Joo says South Koreans drink, on average, 312 cups of coffee a year. “I think most people have their cup at least once every day, usually in the morning,” she says, adding that for those socialising with friends, it’s common to get your second cup after lunch.
Joo notes that the added challenge in operating a modern coffee house in South Korea is the demand for fast service without compromising the quality of the brew. “Local Korean customers usually want to have their beverage ready very quickly. At the same time, they have high expectations on beverage quality, because of their increasing level of coffee knowledge and sophistication. So, we have to make beverages as fast as we can while ensuring that we maintain the highest quality for each cup.”
Consistency is key
For both Fisfaisal and Joo, the consistency in service and product quality of big coffee chains like Starbucks is a key differentiator and a key factor in the thriving business of modern cafés in Asia.
“Korean customers appreciate the consistency in quality and taste from well-known coffee companies. For us, specifically, customers appreciate our coffee beans and the very high skills of our baristas,” says Joo. “I also find that our customers really like the very special Starbucks ‘third-place’ [after your home and office...] experience – they like to enjoy a favourite beverage in the uniquely designed stores and use this time to connect with friends, family and colleagues in a very relaxing environment.”
Fisfaisal echoes this sentiment: “Malaysians value the environment and consistency in terms of practices, product quality, product tastes and service in all shops across the nation.”
He adds: “Branding is very important for Malaysians. Coffee chains with a good brand image will gain trust and confidence among coffee drinkers as they are confident about the product itself.”
Tong agrees, but points out the downside of the emphasis given to consistency. “The standardisation of store environment, coffee and food choices has limited the flexibility of big chains in terms of individuality and the variation of food and beverages.”
Both Starbucks and Pacific Coffee are continually expanding their coffee offerings with new blends and flavours, sometimes specially created for specific local markets. “To be competitive, we must stay alert on market changes and trends,” says Tong. “We must be able to quickly respond and cater to consumer needs.”
FOOD AND COFFEE PAIRING
Much like wine, coffee can bring out the flavours of savoury dishes. Coffee’s aromatic flavour notes – berries, caramel, cocoa, floral, nuts and spices – excite the palate. When paired with different foods, the flavours of each sip are enhanced by every bite.
It should be noted that different regions produce coffees with distinctive tastes that will have unique complementary or contradictory flavours.
Starbucks offers the following tips on the right way to match coffee with your food:
Breakfast Milder blends such as Organic Shade Grown Mexico or Breakfast Blend from Latin America pair well with the salty tastes of bacon, eggs or smoked salmon. Smooth blends like Colombia Narino Supremo from Latin America go best with fruits and cereals as well as pastries.
Lunch or Dinner For something that will last throughout a meal, choose lighter, smoother coffees such as Arabian Mocha Sanani from Arabia/Africa or Sulawesi from Asia-Pacific. Alternatively, serve your coffee iced for a milder taste.
Dessert and Chocolate Both the round flavour of coffee and its effect of warming the mouth make it a perfect partner for chocolate.
• Light, acidic coffees such as Kenya from Africa pair well with berry
desserts, lemon desserts and milk chocolate.
• Medium-bodied, less acidic coffees such as Colombia Narino Supremo pair well with nuts, custard, caramel and semi-sweet chocolate.
• Dark roasted coffees such as Espresso Roast pair well with rich, dairy
desserts like cheesecake or bittersweet chocolate.
COFFEE TASTING TIPS
On average, the Starbucks team of coffee experts taste – or to use the technical term “cup” – over 250,000 cups of coffee each year to ensure consistency and quality.
Below are three quick tips for coffee tasting:
Smell First
Much of our sense of taste is created through the nose, not the mouth. The tongue is only capable of distinguishing five tastes: salty, sweet, bitter, sour and savoury. The nose, however, can detect thousands of subtleties. When tasting a coffee, smell it first.
Slurping Makes Sense
Another important aspect of tasting coffee is slurping. By slurping, you aerate the coffee by spraying it across your palate, which enables the subtle flavours and aromas to reach your nose.
The Geography of your Palate
As you taste a coffee, think about where on your tongue you are experiencing the flavours. Does the coffee hit you on the tips and side of your tongue? How does the coffee feel in your mouth? What is the “weight” of coffee on your tongue?
