Booming Brews - Taiwan's Coffee Culture Clashes with Rising Costs

Booming Brews - Taiwan's Coffee Culture Clashes with Rising Costs

Despite Taiwan's robust coffee market with annual imports exceeding 50,000 tonnes for two consecutive years, local coffee shops are facing increasing financial challenges. The nation's love for coffee has grown substantially since Starbucks first entered the market in 1998, with the average Taiwanese now consuming 184 cups per year—a significant rise from 32 cups back then. However, the thriving market has also seen a surge in the number of coffee shops, making the competition fierce. For small businesses, the rising costs of staff, remodeling, and coffee beans have made it challenging to stay profitable. The entry threshold for opening a small coffee shop starts at NT$2.5 million, and a larger establishment would need around NT$5 million. This intense competition has led to the closure of many smaller or less distinctive coffee shops.

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