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Need Your Help: Caffe Bene Expansion
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mr. bojangles



Joined: 23 Oct 2009

PostPosted: Wed Apr 13, 2011 6:59 am    Post subject: Need Your Help: Caffe Bene Expansion Reply with quote

Caffe Bene is expanding rapidly in Korea, but there are plans for it to expand out West (America and Europe).

For those of you who have been to Caffe Bene, what do you think Caffe Bene would have to change if it wanted to succeed in the West?

Right now the store is known for its gelato and waffles, but would that work in the West?

Can you give me some of your ideas on how Caffe Bene should change if it wants to expand out West? Better coffee on the menu? Less waffles in Europe? More panckakes?

Let me know!
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mr. bojangles



Joined: 23 Oct 2009

PostPosted: Wed Apr 13, 2011 7:00 am    Post subject: Reply with quote

here is some info on how there expansion plans have been working:

http://www.koreatimes.co.kr/www/news/biz/2011/01/123_79585.html
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Radius



Joined: 20 Dec 2009

PostPosted: Wed Apr 13, 2011 7:12 am    Post subject: Reply with quote

I've never heard it pronounced before. Is it "caffey beany," "caffey bean" or "cafe' benny/bean?" How do you say it?
As far as if Americans will catch on to it, I dont think so. Americans like a nice cup of coffee and a chat. Koreans like to eat while they sit down to a cup of coffee; it fits here. Americans I think would rather skip the lite meal and talk over their coffee/latte etc., instead---so minus the waffles, it'd be just another coffee shop, which = fail (most likely.)
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postfundie



Joined: 28 May 2004

PostPosted: Wed Apr 13, 2011 7:19 am    Post subject: Reply with quote

How about waffles that don't cost an arm and a leg?
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Harpeau



Joined: 01 Feb 2003
Location: Coquitlam, BC

PostPosted: Wed Apr 13, 2011 7:20 am    Post subject: Reply with quote

I think that it's awesome. Gelato rocks!! It's relatively healthy and the coffee is also great! Good combo.
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johnnyrook



Joined: 08 Nov 2009

PostPosted: Wed Apr 13, 2011 7:28 am    Post subject: Reply with quote

Mr Bojangles, you seem to have a vested interest in the success of this franchise. Is your full name Mr Bene Bojangles, by any chance?
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tatertot



Joined: 21 Oct 2008

PostPosted: Wed Apr 13, 2011 2:48 pm    Post subject: Reply with quote

I read that article and I find it amusing that it says "Cafe Bene is outpacing its rival Starbucks in opening Stores." So, it opened more Stores in Korea during the same time period. How about profits? Who is making more money?

Anyway, a Cafe Bene recently opened by my apartment so I've been there a few times with my wife. The atmosphere is nice, the coffee isn't bad, and the food is pretty good. The only thing I didn't like was that the customers were incredibly obnoxious, and the enclosed smoking area makes the entire second floor smell kind of smoky.

Regarding westward expansion, I don't think they really need to change anything. The stores would probably do well as they are, except many places are already saturated with coffee shops. There is room for small, independent shops, but I think finding room for a huge chain will be difficult.
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eamo



Joined: 08 Mar 2003
Location: Shepherd's Bush, 1964.

PostPosted: Wed Apr 13, 2011 3:21 pm    Post subject: Reply with quote

postfundie wrote:
How about waffles that don't cost an arm and a leg?


+1

Ice cream and waffles are not expensive to produce. Two waffles and two scoops of ice-cream, or as you say, 'gelato', should not cost 14,000 won......

It's amazing how deprived of anything nice Koreans must have been. They'll pay anything for a treat.
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orosee



Joined: 07 Mar 2008
Location: Hannam-dong, Seoul

PostPosted: Wed Apr 13, 2011 4:08 pm    Post subject: Reply with quote

There definitely has to be a different strategy for the US market, the continental European market and perhaps the UK market.

First off, UK people have a reputation of loving abhorrent food and drink tea at 5pm, so one needs to take this into account. Also, outside of London wages are miserably low, perhaps people spend their har earned money rather on a warm beer than a hot coffee. Replace all bakery items with soft, wet sandwich bread. Done.

In the US, well... you need to change the name (which would normally be pronounced in Italian) or write something silly to help the average US citizen, e.g. "Car-fay Bay-nay"... sounds a bit like pig Latin, and Latin is from Italy, so there. Since the Korean "bakery" items are mostly based on inferior (to continental European) recipes and ingredients for "cakes", "waffles", "buns" rather than the sophisticates wonders that e.g. German or French bakers and patissiers can produce, you can leave that. As long as the stuff is lighter than air (bread), heavier than lead (cheese cake) or sweeter than a diabetic's suicide cocktail (everything else), it will sell well in the US. Well, maybe add a chili-cheese-waffle (I would actually buy that). Leave the ice cream, it's delicious.

For continental Europe, that's old school (not sure about the current generation though). Make the waffles like Beans Bins does. Leave the ice cream. Get a real baker or do comparison shopping. Do this for EVERY country in Europe, sorry. Oh wait, before that, check why Starbucks never made a dent in the existing cafficionado scene... that's right, to succedd in continental Europe you need to offer your coffee either great or cheap. Anyway I predict that C.B. or any other chain will have a tough time in Europe.

For all the World, keep the free high speed internet if you can afford it. You can sell whatever you want if you can offer that.

Finally, you MUST drop the business model that makes Korean coffee shops so great. Yes! You must kick out your customers within 15 minutes of finishing their beverage or food, must not allow anyone to sit and surf for hours drinking just the free water, must disallow food sharing of more than 2 persons per plate, must banish the smoking areas. The latter is prohibited mostly everywhere, the rest would cause financial ruin in a short time because of unreasonable rent and local competition.

Actually, the Korean coffee shop business model seems to me to be "a place where people can sit, if necessary for hours, with friends or alone, studying, relaxing, hiding or smoking, enjoying free internet and music, protection from the elements, in a social environment, for under 5$ or for free, without being bothered by the staff." Except for Starbucks, where people go to compare their latest Apple products.

How could that ever work (financially) in another country?
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brento1138



Joined: 17 Nov 2004

PostPosted: Wed Apr 13, 2011 4:09 pm    Post subject: Reply with quote

Radius wrote:
I've never heard it pronounced before. Is it "caffey beany," "caffey bean" or "cafe' benny/bean?" How do you say it?
As far as if Americans will catch on to it, I dont think so. Americans like a nice cup of coffee and a chat. Koreans like to eat while they sit down to a cup of coffee; it fits here. Americans I think would rather skip the lite meal and talk over their coffee/latte etc., instead---so minus the waffles, it'd be just another coffee shop, which = fail (most likely.)


It's pronounced cafe bennay. I think they should change the name of the place before they try to market it abroad. People will hear that it's Korean and assume it is a cheap "Asian" ripoff of "Coffee Bean" (Cafe Bene looks similar). Americans might equate it with how Chinese companies rip off products by introducing the otouch, opad, and ophone (haha, I just made those up but you get the point). Anyways, I went there myself and found the atmosphere alright. Coffee tasted just fine. No problem. But people might think the name is annoying...

If they can hide the fact that it's a coffee company from South Korea (ie. not famous at all for coffee) and can change the name so Americans can pronounce it, they may do OK.
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legrande



Joined: 23 Nov 2010

PostPosted: Wed Apr 13, 2011 4:13 pm    Post subject: Reply with quote

eamo wrote:
postfundie wrote:
How about waffles that don't cost an arm and a leg?


+1

Ice cream and waffles are not expensive to produce. Two waffles and two scoops of ice-cream, or as you say, 'gelato', should not cost 14,000 won......

It's amazing how deprived of anything nice Koreans must have been. They'll pay anything for a treat.


Not only that, waffles (heated up in the ol' microwave) and ice cream get old after a while. Try expanding the menu, maybe even include something that requires you to cook up something fresh. In other words, stop obsessing so much about the bottom line/beating Starbuck's, and actually go to bat for your customers in a bigger way. 'Swear almost everything has the residue of cheapness in this country, 'less you're willing to fork over boatloads of coin.
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Hyeon Een



Joined: 24 Jun 2005

PostPosted: Wed Apr 13, 2011 6:11 pm    Post subject: Re: Need Your Help: Caffe Bene Expansion Reply with quote

mr. bojangles wrote:
Caffe Bene is expanding rapidly in Korea, but there are plans for it to expand out West (America and Europe).

For those of you who have been to Caffe Bene, what do you think Caffe Bene would have to change if it wanted to succeed in the West?

Right now the store is known for its gelato and waffles, but would that work in the West?

Can you give me some of your ideas on how Caffe Bene should change if it wants to expand out West? Better coffee on the menu? Less waffles in Europe? More panckakes?

Let me know!


I heard they're opening a multi-million dollar store in New York. (Times Square?). Most Korean companies open up in LA in K-town.. this is an interesting change. I'm curious to see how well it does.

Anyway, they started out in April 2008 and now have almost 400 stores. How the hell did they do that so fast? Is there a parent company or huge investor somewhere? Or did they just have an awesome business model?
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freddy teacher



Joined: 01 Jan 2011

PostPosted: Wed Apr 13, 2011 6:37 pm    Post subject: Re: Need Your Help: Caffe Bene Expansion Reply with quote

[quote="Hyeon Een"]
mr. bojangles wrote:
Anyway, they started out in April 2008 and now have almost 400 stores. How the hell did they do that so fast? Is there a parent company or huge investor somewhere? Or did they just have an awesome business model?


its actually owned by an entertainment company 싸이더스. i believe it started out as a coffee shop in a hit TV drama, then the company decided to actually turn it into a chain. brilliant idea if u ask me--free advertising.

they definitely dont teach that kind of forward thinking in korean economics...this dude should be the new education minister, because god knows korean's need a new one...
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ThingsComeAround



Joined: 07 Nov 2008

PostPosted: Wed Apr 13, 2011 6:44 pm    Post subject: Reply with quote

Doubt they could keep the computers for customers to use. Once I saw a junkie smash the window of a Cingular store- and walked away calmly with boxes under his arms and an alarm glaring in the background.

This wasn't in a 'bad' neighborhood- but Flatiron/Madison Square park.

What's more, they will compete with diners, Dunkin Donuts, private coffee shops, and the coffee chains.

Cheers to KT for noting that the coffee isn't memorable. And that the bread is poor. I predict that in a few months to a year they will hail it as being a 'success' despite the chain is only found in Korea towns in America.

edit
@ freddy teacher
Korean marketing could use an overhaul as well
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SeoulNate



Joined: 04 Jun 2010
Location: Hyehwa

PostPosted: Wed Apr 13, 2011 8:27 pm    Post subject: Reply with quote

I would say that it would not do well.

As another person pointed out, the prices are insane.

Also, i would add, their coffee is terrible.
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