While Starbucks may be globally recognized as a coffee giant, 7-Eleven’s City Cafe continues to reign supreme in Taiwan’s fresh coffee market, bolstered by the convenience store chain’s vast market presence and diversified product offerings.
City Cafe, launched in 2004 by President Chain Store Corp , which operates both 7-Eleven and Starbucks chains in Taiwan, has steadily grown in popularity. The brand’s turning point came in 2007 when actress Gwei Lun-mei became its spokesperson. By 2015, City Cafe’s sales surged past NT$10 billion (US$311.69 million) for the first time, surpassing Starbucks Taiwan’s revenue. Last year, City Cafe’s sales climbed to over NT$17 billion, comfortably outpacing Starbucks Taiwan’s NT$14.98 billion.
These impressive figures were confirmed during PCSC’s investor conference last month, highlighting City Cafe’s dominance over the growing fresh coffee offerings from other convenience store competitors such as Taiwan FamilyMart Co and Hi-Life International Co.
A key factor behind City Cafe’s success is the sheer popularity and reach of 7-Eleven stores. With 7-Eleven’s store count expected to reach 7,000 in Taiwan this year, analysts predict City Cafe could see a record-breaking NT$20 billion in sales in 2024.
PCSC’s strategy of diversifying its coffee brands has also played a pivotal role in City Cafe’s sustained growth. Celebrating its 20th anniversary this year, PCSC recently expanded its offerings beyond the affordable City Cafe brand, introducing the more premium City Prima line. This broader product range has helped attract a wider customer base, allowing City Cafe to maintain its lead in Taiwan’s freshly brewed coffee market.
According to PCSC, 40 percent of City Cafe’s sales come from its latte and Americano offerings, while other flavored coffee drinks account for the remaining 20 percent.
FamilyMart’s Let’s Cafe, launched in 2006, has also made significant strides in Taiwan’s coffee market. With actor Mark Chao serving as its spokesperson since 2009, Let’s Cafe generated NT$7 billion in revenue last year. The company reported that 45 percent of its fresh coffee sales came from classic coffee offerings, while 55 percent were from single-origin coffees.
Hi-Life, seeking to expand its market share, invested NT$100 million in April to revamp its Hi Cafe brand. The effort has paid off, with Hi Cafe reporting NT$2 billion in revenue last year. This year, sales have surged 50 percent year-over-year, putting the brand on track to reach NT$3 billion by the end of 2024.
Despite fierce competition from FamilyMart and Hi-Life, 7-Eleven’s City Cafe remains the undisputed leader in Taiwan’s fresh coffee market, continuing to outpace its rivals and set new benchmarks in the industry.
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