On July 28, 2004, the first 85°C store opened on Baoping Road, New Taipei City, Taiwan. As its products became more popular, the second store opened in the same year and open for franchises. In 2004, "Gourmet Master Co. Ltd." was established in Taiwan and registered in the Cayman Islands. In September 2008, its parent company, a shareholding company, was established due to the reorganization. In 2010, it became a publicly-traded company and its shares were listed on Taiwan Stock Exchange. It opened 300 branches in three years and then started its oversea expansions. The brand name came from the belief, that "coffee tastes best at 85 degrees Celsius". As of May 2018, 85°C has opened 589 stores in China, a central kitchen, 11 logistics centers, 435 stores in Taiwan, and 44 stores in the United States. Most of its stores are franchises.
Its Strategic Choices
The first strategic choice was to reorganize its structure for the tax benefit that would down from 40% to 20% since it was registered in the Cayman Islands and treated as a "foreign issuer" in Taiwan. Secondly, the central kitchen. One of the most recent trends that have proven to save money and waste in the long term is central kitchens. Central kitchens not only can cut staff costs, food costs, and equipment and location costs, but also decrease waste. Thirdly, its expansion. Most of its stores are opened in China which is the biggest coffee market in the world. Moreover, geographically it is closer to Taiwan, not to mention that it is also a Chinese-speaking country. Therefore, China was the top priority when Gourmet Master Co. Ltd started its expansion.
Reference
Home. 85C Bakery Cafe. (2022, May 7). Retrieved May 9, 2022, from https://www.85cbakerycafe.com/
85 degrees cafe australia 85C. 85 Degrees Cafe. (n.d.). Retrieved May 9, 2022, from https://www.85cafe.com.au/
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