IT IS NOT JUST the cast in the TV series Friends who have a weakness for a good cup of coffee; millions around the world also find themselves bitten by the caffeine bug. While the speciality coffee shop phenomenon was spreading around the globe faster than a plague of caffeine-high locusts (Starbucks has 7,500 outlets worldwide), the Hong Kong coffee scene was quietly simmering, dominated by two main players, market leader Starbucks and No2 player Pacific Coffee. Then last month, a third player arrived on the scene. Malaysia-based, United States-founded San Francisco Coffee opened its flagship store in May, on the newly opened Avenue of Stars, in Tsim Sha Tsui. The brand promises to give Starbucks and Pacific Coffee a run for their money. 'We were looking at getting into the Hong Kong market in 1999, but we ended up going to Manila and Singapore first, after Kuala Lumpur, where we started in 1998. We think we can be the No3 here in terms of outlets in the next two to three years,' said Robert Boxwell, chief executive of San Francisco Coffee. Finding the right location at the right price was a major factor in setting up business in Hong Kong, said the former accountant and consultant. The recent economic and property slump, and knock-on rent reductions, also spurred plans to establish a Hong Kong outlet. Angela Chou, marketing manager for Starbucks in Hong Kong, agreed that the economic slump had not affected the coffee-drinking business. She said Starbucks, the world's largest speciality coffee chain, has opened an average of 10 stores a year since arriving in Hong Kong four years ago. The brand was still expanding, she added. Starbucks has 41 outlets in the city, and two more are due to open in the next two months, while a further seven to nine are being evaluated. Ms Chou said between 50 to 80 vacancies are expeced to be created. With one store under its belt, San Francisco plans to open six to eight outlets a year, or 25 to 30 stores in the next three years. The brand anticipates having between 100 and 200 people on its staff by 2007. 'We do not generally hire people without a degree,' Mr Boxwell said. 'It costs a bit more, but we think the cost of not hiring those with degrees is greater over time. We want bright, pleasant staff. We can't teach people how to smile, it's their parents who do that.' He emphasised that the opportunities and rewards would be great for those who did make the grade. 'We don't hire over people, and we consider our first batch of employees management trainees who will head up the next shop that opens,' Mr Boxwell said. 'They can also move to our other shops in the region if they wish to,' he said. Meanwhile, the wellness cafe Kosmo tends to hire people who show a 'passion for life'. Kosmo chief executive C.A. Lin said staff tended to be energetic and drawn to the wellness trend. 'People who come to us tend to be optimistic, and we have observed this in the mainland, where we have nine outlets,' he said. Kosmo opened in Hong Kong in March last year, at a location some might consider brave or daring: right opposite Starbucks in Central. Mr Lin said the spot was chosen for its 'great location', and not because it was opposite Starbucks. 'The choice was coincidental. We consider ourselves in a very different space to other chains, and we are not here to compete with them. We are trying to tap the wellness niche, not the speciality coffee niche,' said Mr Lin, an Australian citizen who gave up a lucrative career as a corporate and banking lawyer in Hong Kong to take up the Kosmo post. The company, which prides itself on its organic coffees, fair-trade teas and healing juices, is in expansion mode and plans to open three outlets over the next three months, and another four stores by year's end. It will also hire about 150 people by the end of the year. Kosmo staff, who are called 'ambassadors', are rewarded for loyalty and receive a number of perks, including reduced gym membership, hospital cover after two years, and the chance to work in mainland stores. Salaries are competitive. The firm expects to start hiring soon. Your cup of tea? StARBUCKS Has 41 outlets in Hong Kong Has two more due to open in two months Between 50 and 80 vacancies will be created San Francisco Plans to open 25 to 30 stores in the next three years Between 100 and 200 vacancies will be created Kosmo Plans to open three more outlets in three months Up to 150 vacancies will be created
