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April 28, 2010

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Success brews one cup at a time

SOME people love their morning cup of coffee. Some dote on the ambience and social life of coffee shops. But for Wang Yucheng and his girlfriend Xu Lu, their passion for coffee went far beyond the norm.

The two Shanghai residents, both in their late 20s, quit white-collar jobs last year and opened their own coffee shop, Nuevo 66 - a name combining the Spanish idiom for "young and fresh" with the cafe's address on Nanchang Road.

The couple is hoping to tap the rising popularity of coffee among the once traditional tea-drinking Chinese.

To outsiders, it looks like a dream job: flexible work hours, no rush-hour traffic to endure, no picky bosses to please, and an atmosphere wafting with the wonderful aroma of coffee.

But it's a lot of work to make a small business successful.

"I am the boss, the waiter and even the cleaner of the shop," said Wang. "But when you really have the interest, no effort is too painful.""In my eyes, coffee means spirit."

Wang worked as a sales representative for a medicine company for a few years, but soon tired of the long hours and endless business trips.

Prior to entering college, he had worked part-time at a privately owned coffee shop, where his interest was piqued.

He bought books to learn about growing coffee beans, roasting and brewing in order to achieve his goal of becoming a barista in his own cafe.

"In my eyes, coffee means spirit," Wang said. "Premier coffee is usually planted in areas with tough soil conditions. Without patience, the right attitude and a pureness of mood, it is impossible for anyone to truly appreciate the art of coffee."

After an initial investment of 150,000 yuan (US$21,994) - a third of it from parents - and nearly six months' preparation, Nuevo 66 opened last December.

Due to their tight budget, the couple didn't employ anyone besides themselves, though sometimes Wang's retired aunt drops by to help in the kitchen.

Wang and Xu realized from the start that location would be a big key to whether their venture succeeded.

They needed a site where it would be easy to attract customers. They chose a 20-square-meter, two-story apartment in an old building on a quiet street just off the popular shopping area of Huaihai Road. "The first thing is the environment."

Nuevo 66, which seats 15, is decorated in intense reds, greens and blacks, mixing Chinese and Western styles. On several walls are pictures of customers, some of who have become good friends of Wang and Xu.

There are also DVDs and books laid at the side of stairs, free for customers to use while sipping their beverages.

Wang buys roasted beans from around the world from a wholesale roaster in Shanghai. He grinds the beans in situ and brews them in a US$2,932 Nuova coffee machine from Italy.

They sell nearly 50 beverages including lattes, expressos as well as juices and milk teas.

A latte retails for about 23 yuan, about 9 yuan less than a comparable drink at Starbucks. The shop also offers baked goods such as pastries, cookies and brownies.

The cafe's rent is 6,000 yuan a month. Total operating costs add up to about 10,000 yuan a month, including rent, utilities and ingredients.

He admits Nuevo 66 is just managing to break even so far. But, that doesn't worry him at this stage, nor does competition from international chains like Starbucks and Costa.

"The first thing is the environment," he said. "Coffee chains are large commercial businesses and have the impersonal air of fast food. In my small shop, I am giving customers a cozy atmosphere where they can relax.

"Second, we also provide truly personal service," he said speaking of what distinguishes Nuevo 66 from the big chains.

Wang also said the quality can sometimes suffer in chains.

"I know about coffee. Real coffee enthusiasts want something unique and premier, and that population is expanding in China."

Starting a small business on a tight budget poses risks for any fledgling entrepreneur. Wang said he has set down a few principles for success.

He doesn't outsource anything related to food or drink. And he listens to customer feedback.

This has led Xu to adjust her recipes and baking times to make cookies crisper. Even a bit more salt in the brownies drew favorable reviews from customers."It takes more work that you can imagine and doesn't necessarily produce a big fortune."

Not surprisingly, the couple have become friends with some repeat customers. Like the ubiquitous cafes of Europe, Nuevo 66 is also developing its own personality and attracting a core clientele who come to socialize as well as enjoy coffee.

On a recent afternoon, about seven people, most of them in their 20s, were seated inside as well as in the ally in front of the shop. Lively chatter filled the air.

The business got a shot in the arm when a food writer visited unannounced, liked what he was served and introduced Nuevo 66 to a popular dining Website.

That testimonial, along with word of mouth, has produced a steady increase in patronage.

"Right now our top priority is to make the shop more perfect by remedying any shortcomings in service, decor and equipment," said Wang, who also plans to expand the menu.

"The extra-value of each product will ensure growth," he said. "It also offers wider variety to customers and helps keep up traffic flow."

Among their special menu items are homemade apple cake and a coconut-flavored Irish coffee, made with Scottish whisky.

The shop is open six days a week from noon to 11pm. An English menu is available.

"People may think running a coffee shop is a romantic venture with no pressure," Wang said.

"They don't really understand that it takes more work that you can imagine and doesn't necessarily produce a big fortune," Wang added.

"But as long as we are undertaking this, we have to do our best."Editor's Note:

Shanghai's strong economic growth should be attributed to not only the robust performance of state-owned enterprises but also the emerging power of the private sector. The number of private businesses now account for 72 percent of the total in the city, according to the local statistics bureau. Shanghai Daily has launched a biweekly column about small business people in Shanghai and how they cope with the challenges of entrepreneurship.Business: Coffee shop

Company: Nuevo 66

Interviewees: Wang Yucheng and Xu Lu

Age: both in late 20s

Business start: last December

Initial investment: 150,000 yuan (US$21,994) for house renovation and equipment

Current status: breaking even

Future expectations: Move the cafe to a beautiful house with balcony, open garden and affordable rent.Chinese people traditionally are big tea drinkers. But coffee consumption in the world's most populous nation is booming as coffee chains such as Starbucks, Costa Coffee and home-grown UBC Coffee race to grab market share.

Many cities have a lot of coffee shops, especially in big cosmopolitan centers like Shanghai, winning the hearts of young consumers. According to a report, annual coffee consumption is about four cups a day on average with up to 20 cups in big cities.

Compared with Japan and the United Kingdom, where almost everyone drinks at least one cup of coffee every day, the low market penetration of coffee in China means the country is a boon for coffee professionals.

It is estimated that coffee consumption has grown 30 percent annually over the past five years in China.




 

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