Teahouses and Coffeehouses - China - October 2012
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“Café chains only really began to appear in China in the late 1990s, and have grown very rapidly in number since, while the tea house sector has struggled to find a response in terms of a successful organised, branded, franchised chain. Yet both sectors remain locked in competition for the higher-end urban consumers who enjoy the cultural cachet of premium cafés and tea houses."
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Yet the high end is only part of the story, and not only do we already have fast food and convenience store cafés coming in to compete for a younger, lower-income market, there has also been the recent development of the bubble tea phenomenon, with their tea and coffee soft drinks fusion concept.The leading café chains are looking for fast expansion, while the tea house sector is beginning to see the emergence of significant chains, but the market has to continually adapt and innovate as it grows in order capture the interest of consumers amid competition from independents, as well as other competing foodservice sectors.
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