Crazy for Conbini Coffee

Japanese cities are powered by workers on the go. As a result, they need to fuel themselves to keep going. Naturally, caffeine is one of the most popular fuels making coffee big business in Japan.

For anyone who’s spent a large amount of time in Japan, you’ll notice coffee is everywhere. From canned coffee stacked in vending machines that line the streets, to famous coffee chains popping up on every corner, you’ll always be a few feet away from receiving your next caffeine hit.

Initially, the big chains such as Starbucks, Doutor and McDonald’s dominated the coffee market. And for a cheaper alternative, sugary canned coffee was the only other option. This is no longer the case with the rise of convenient store coffee – or conbini coffee. This type of coffee has been attracting more and more customers impressed with its quality, freshness, low price and availability 24 hours a day.

Good coffee has the ability to attract repeat customers, who may also make further purchases once inside a convenient store. It’s no wonder convenient stores have pounced on the coffee market, which is worth almost 1.3 trillion yen in Japan.

Lawson kicked off the conbini coffee craze back in 2011 by selling over-the-counter dripped coffee.

7-Eleven developed this further in 2013 by using automated coffee machines instead of an over-the-counter-service. The method was simple, and customers simply paid for their coffee at the till and received an empty cup. They then used a coffee machine to fill their cup. Not only was the coffee fresh and tasty, but it was a fraction of the cost of typical coffee shops. Seven Eleven priced their black Arabica coffee at 100 yen (150 yen for a bigger cup), which resulted in them selling 500 million cups of coffee in its first year. This simple and efficient service was branded Seven Café and 7-Eleven subsequently saw a 27% increase in total net profit and a 13% increase in revenue.

“It’s freshly ground, but we managed to provide customers with the price tag of ¥100, which is attractive to everyone,” said Noritoshi Murata, president of Seven & i Holdings Co., the parent of the 7-Eleven chain. “The product helped lift our entire sales.”

Unsurprisingly, the other major convenient stores– such as Lawson and Family Mart – wanted a piece of the coffee action, and introduced their own coffee ranges, sparking a rivalry between the outlets to see who could attract the most customers.

For example, Family Mart have introduced hot chocolate and frappes, while Lawson offers lattes, in contrast to 7-Eleven’s tried and tested simple black coffee range. Coffee lovers enjoy comparing and reviewing the different types of coffee on offer. Whatever the coffee range, convenient stores are determined to keep their coffee prices low because many people who are on the go, such as office workers, seek reasonably priced coffee to offset the high price they pay for food during their lunch break. This effort to keep prices low is clearly paying off because 1.9 billion cups of conbini coffee have been sold to date, and showing no signs of letting up. Convenient stores understand that coffee can generate high profits, consequently some stores are turning their outlet into mini-cafes by creating small seating areas for people to gather and chat over a coffee. It is no exaggeration to say that the Japanese have fallen in love with conbini coffee, and will continue to do so while convenient stores are attentive to their coffee needs.

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