85 Degrees plans massive China expansion

Taiwanese cafe chain 85 Degrees is demonstrating its confidence in the mainland China’s coffee market with plans to expand massively.

85 Degrees says it plans to open 100 new cafes annually between now and 2017.

“We have a positive outlook on (the mainland) market. People’s spending power is getting better and better, meaning our proceeds can become increasingly stable,” said the company’s spokesperson in China Wu Yanghan.

The mainland market now contributes 70 per cent of the company’s total revenue.

With cafes designed like bakeries, 85 Degrees is confident it will stand the competition from the likes of McCafe and Starbucks, who plan to take their chains to 1500 by 2015.

While bullish in China, 85 Degrees has been slow in expanding locally where it has 347 outlets only compared to 366 in the mainland.

Owned by Gourmet Master, 85 Degrees was named after 85 ℃ which is the ideal temperature to drink coffee.

GB

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