HONG KONG — Despite challenges facing the Hong Kong catering and retail market, including consumption downturns and economic instability, some foreign brands remain optimistic about their prospects. Bache Coffee, a Moroccan coffee brand that originated in Singapore, has expanded its presence in the city with a new store at Hong Kong International Airport, offering takeaway services.
In an exclusive interview, Taha Bouqdib, chairman and CEO of V3 Gourmet, which operates Bache Coffee, shared that the brand is actively seeking a location in Hong Kong that offers seated dine-in services. While acknowledging the tough market conditions, Bouqdib emphasized that the brand’s sales performance in the city has exceeded expectations. He plans to make decisions based on his own observations and data, rather than following trends. In addition to expanding in Hong Kong, Bouqdib revealed that Bache Coffee is eyeing the mainland China market, spurred by strong sales through Tmall’s online platform.
Adapting to Competition and Consumer Preferences
The coffee shop scene in Hong Kong has grown rapidly over the past decade, with a proliferation of both large chains and independent shops that emphasize unique barista skills. When asked about competition, Bouqdib noted that consumers have become tired of generic offerings, with many large brands following the same decor, roasting, and brewing formulas.
Bache Coffee differentiates itself by tailoring the design and ambiance of each store to reflect regional and local cultural influences. The company also invests heavily in training its baristas to provide personalized experiences for customers. In terms of product innovation, Bouqdib highlighted that the brand continuously invests 20% to 25% of its sales in research and development (R&D) to avoid a “one-size-fits-all” approach.
Securing Coffee Bean Supply Amid Market Fluctuations
The coffee bean market has been impacted by weather-related fluctuations in harvests, which in turn affect prices. Bouqdib, however, assured that Bache Coffee is not passing on these costs to consumers. To mitigate supply chain issues and price volatility, the brand has formed long-term contracts with coffee farmers, allowing it to purchase beans directly from the source. This strategy cuts out intermediaries, ensuring consistent supply and better control over the quality of its coffee beans.
Resilience Amid Geopolitical and Environmental Challenges
Bouqdib also addressed concerns about geopolitical risks and environmental policies, which have been increasingly prominent since the outbreak of the Russia-Ukraine war. He pointed out that coffee is a necessity for many consumers, and its demand remains relatively unaffected by geopolitical instability.
On environmental sustainability, Bouqdib expressed strong support for sustainable practices, noting that coffee is a natural product that thrives in a healthy environment. The company aims to align with consumer values by supporting sustainable development practices, enhancing its brand image and contributing positively to the environment.
Conclusion
As Bache Coffee continues its expansion in Hong Kong and looks to mainland China, its focus on personalized customer experiences, sustainable sourcing, and innovation sets it apart from competitors. Despite economic and geopolitical challenges, the brand remains confident in its growth trajectory, driven by a commitment to quality and community engagement.
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