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Watch out Starbucks,
Is bubble tea a big seller? 5 star hotels and the cake might cost TWD100 in the hotel but in
PZ: Most bakeries we see here only sell bread and cake, which 85C we sell it at TWD30; same thing with coffee.
makes 85c unique. The sales of bubble tea and coffee make up Another advantage is our new store opening speed. In Taiwan, we
to 30-40 percent of the revenue. The net profits for coffee and had a record of opening a new store in 2 days. In 10 consecutive
85c is the new
bubble tea are higher than cake and bread. months, we opened 16 stores per month. Our target in China is
the same, but sometimes getting the permission for a new store
What is the difference with your operations in China versus takes longer. In Shanghai, currently we can open up 7 stores per
kid in town
Taiwan? month.
PZ: The basics are almost the same, except we have 340 stores
in Taiwan. We started our business there 5 years ago by mak- What’s the average sales revenue of a store?
ing coffee, cakes and bread. In Taiwan, most customers go to PZ: The best shop can have revenue of RMB1.9 million per month
our store for coffee, while in Shanghai we find people like bubble in Shanghai, while our store in the US, can do in excess of USD
tea better than coffee, but of course, we see growth in coffee 400,000 per month.
consumption. Taiwan is a mature market for us with coffee con-
sumption taking up to 80 percent of our business. There are also Has the economic slowdown impacted your business?
other difference such as Chinese preference for bread and buying PZ: Not very much. The least affected sector is the food industry.
habits. In Taiwan, the sales volume for cake increases at Mothers’ People may cut down their budget for buying clothes and enter-
Day, since it’s a tradition, but in China people buy cakes during tainment but not their budget for eating.
Spring Festival.
What’s the plan for the future?
Compared with bakeries like Paul, Christine and others, PZ: To be honest, we shareholders could just stay in Taiwan and
what is the 85c advantage? stick with the business there and have a steady income. We see
PZ: The media has called us Pin Jia She Hua (low price luxury) in how the market is flooded with Western brands like KFC, McDon-
Taiwan. In light of the current economic situation, one alternative ald’s and Pizza Hut and given our success in Taiwan and China, we
to maintain business is to offer customers a quality product at a feel we can build this Chinese brand and promote it elsewhere. We
lower price. The ingredients we use for making bread and cake see the opportunity, but we still need to enhance our management
are top quality ingredients imported from France and New Zea- experience and that takes time.
land. Most of our bakers were used to making cake or bread at JULY/AUGUST 2009 9
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