Having 350 cafes in Taiwan and with an annual business volume of RMB1 billion, 85 Cafe opened its first mainland cafe on Weihai Road, Shanghai four months ago.
According to Wang Jianyao, vice general manager of 85 Cafe, the sales of this cafe is three times more than their expectation and the company plans to open more than 30 cafes in the city by the end of 2008.
Following the tradition of 85 Cafe, the Weihai Road cafe is a 24-hour cafe, making it the first all-night bread chain in Shanghai. Have been open for only four months, the cafe reaches an average daily sales of about RMB50,000. Because of the good performance of its first cafe in mainland China, 85 Cafe plans to increase the number of its cafes in Shanghai to more than 30. The 30 cafes will all be located in the commercial and residential areas around the center of the city and more cafes will be open outside Shanghai in 2009.
In Taiwan, 90% of the 300 stores of 85 Cafe are franchise stores and the company will open up its franchise rights in mainland China in 2009. Franchise stores in mainland will adopt single-unit franchising and the expense is about RMB2 million, including alliance expense, decoration and equipments.