Brews on the boil

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.