Black Canyon Coffee / page 2
Black Canyon Coffee (BCC) celebrated their tenth year in 2002.
Starting with a single
Bangkok location in 1993, the company now operated the largest chain of coffee shops in
Detailed financial data is not available as the firm is privately held, however,
2002 revenues were 318 million baht, with a profit margin of 10 percent.
BCC has been
experiencing 15 – 20 percent annual growth, and has little debt.
The chain employs
2,000 staff – 500 as direct employees, and the remainder working for joint venture
partners or franchisees.
The founder and Managing Director
, Pravit Pong, had recently begun to pursue
Concurrently, Starbucks and other international chains had
recently begun to focus on Thailand and other Asian markets.
Experts predict a
consolidation phase in the industry that will leave five or six global competitors.
steps should MD Pong consider to help ensure the survival of his company?
While the basis for many startups are prior experience or a personal interest, BCC’s
founders had no restaurant expertise, and weren’t even coffee drinkers.
In the early
1990’s, relatively few Asian consumers drank coffee, and Thailand was no exception.
For many Thais, Nescafe instant was the only coffee product they were familiar with.
how did a group of computer consultants end up building Thailand’s coffee house market
MD Pong explained
Ten years ago, we were actively involved in the IT business.
We found that it
was a very tough business.
We did not own any intellectual property, but just
represented someone else, such as IBM or HP.
We wanted to own something that
belonged to us.
The IT business was up and down, up and down, very fast.
change in the new technology came every two or three months, and the margin
was less and less. Many people would go into the same market, and the
competition was very high.
So, I think that we can build our own brand name.
Secondly, the things that we thought about would be clothes, food, medicine, and