By Neal Robinson
The past year was a difficult one worldwide as the economy contracted. A reluctance by consumers to purchase beverages outside the home contributed to decreasing sales in the foodservice arena. However, based on what I observed in Asia recently, some encouraging trends may paint a more cheerful picture in the coming year for Asian foodservice operators, specialty coffee shops, and other venues where consumers buy beverages. These trends have the potential to bolster the Asian beverage industry and the foodservice market, as a whole.
Coffee consumption gains on teaTraditionally a region where tea has been the preferred beverage for centuries, Asia has been dramatically affected by the burgeoning popularity of specialty coffee and espresso-based beverages. According to DataMonitor, coffee consumption in Asia is predicted to increase 31.59 % in the decade from 2003-2013, an average of 2.78% per year, outstripping tea, which rose 24.20% over the same time period or 2.19% a year. Of course, tea is still the preferred beverage with total consumption more than three times that of coffee (US$14,361.1 million for tea versus US$4,637.2 million for coffee) in 2008.
The Speciality Coffee Association of China (SCAC) has stepped up to the challenge of assuring that the coffee served meets consistent standards of quality and is working to develop Gold Cup standards for China, similar to those which already exist for Europe and the US. The Gold Cup program is European-driven by the Speciality Coffee Association of Europe (SCAE) to improve the standard of filter coffee consumed in the marketplace. The SCAE’s Gold Cup program promotes a better, measurable standard in filter coffee achieved by setting minimum standards for coffee to water ratio, brewing temperature and holding time, and optimum standards for coffee extraction and strength.
In the barista school in Beijing, the SCAC is interested not only in training baristas to properly brew espresso, but also to make excellent filter drip coffee. Elsewhere in Asia, there is similar growth. Recently in Beijing, we saw concepts such as coffee houses, fast food, and even pizza chains that were selling espresso beverages, iced-coffee and a full range of cold beverages using tea and coffee as the flavor base. The specialty coffee associations of Japan, India, and Indonesia are all growing due to the increasing consumption of coffee, and the first Asia Barista Championship was held at FHA 2008 – the championship at the April 2010 show promises to be even bigger.
According to the Singapore Economic Development Board in 2008, "the growth of the coffee market in key Asian cities has risen over 25% in the last five years, indicating a large segment of the development in the region. There is an unprecedented growth rate in the demand for premium coffee with increasing[ly] discerning consumers in Asia."
The myth of the disappearing baristaWith this fact of increasing coffee consumption, comes a myth, that of the disappearing barista. There is one school of thought that holds with the theory that the advent of sophisticated computerized coffee equipment and espresso systems will ultimately result in the demise of the barista, a highly trained individual who understands both the beverage and the customer. Often the barista is also trained in latte art, so he or she can skillfully produce complex designs in the milk foam on top of the espresso beverage.
Even establishments that do not employ a barista use highly trained servers to assure that coffee or espresso is prepared to maximize the flavor and enhance customer experience. Although it sounds plausible that a super automatic espresso system, capable not only of brewing espresso but also of producing high-quality steamed milk and foam, could take away jobs from baristas and skilled servers, I believe that baristas will not become obsolete. On the contrary, they will become even more vital to the success of a beverage program in many dining venues.
A barista will always be important, especially in high theater or high touch environments. Customers like the one-on-one interface that a barista provides. A fully automatic espresso machine will not do latte art or provide much of the customer interaction of a barista or server and many are now or are becoming familiar with a full range of beverages to help the operator expand their beverage offerings along with the customers experience.
The right role for fully automatic beverage equipmentIn Hong Kong recently I saw a barista working with a fully automatic machine. The barista was using the espresso system to grind and brew the espresso, then he steamed and foamed the milk himself. In this way, he preserved the theater that customers expect when they order a high-end espresso beverage, but he did not have to spend an inordinate amount of time grinding beans, tamping the grounds, and preparing the espresso – the system did this for him, freeing him to that he could concentrate on the customer.
Technologically sophisticated espresso systems and coffee brewers actually improve the position of a barista or server, reinventing them as beverage preparation experts, freed from some of the more technical aspects of brewing to concentrate on enhancing customer experience
The manager or operator often spearheads a concept, while the barista or server executes the program and interacts with the customer one-on-one. He or she understands the hot beverage or brewed segment as well as cold beverages such as iced coffee or fresh brewed tea. Far from replacing baristas, fully automatic espresso machines and sophisticated filter drip brewers elevate them to a level where they can not only serve customers better, but also work with food and beverage managers to establish new concepts and expand beverage offerings.
For filter drip coffee though, the BUNN BrewWISE systems can assist a staff person who may not be trained in brewing filter coffee. These systems, available with either Soft Heat or insulated ThermoFresh servers, can be set up to brew coffee to global Gold Cup standards, maximizing the flavor of estate or single origin beans. The technology resident in these systems allows customization of the coffee’s flavor profile, so that the finished beverage is complex and satisfying.
Concentrates and single cup brewingIn addition, I am seeing increasing use of concentrates as a base for both hot and cold beverages. Concentrated coffee, tea or liquid coffee can be used to build many different beverages, and a wide number of iced or frozen beverages can be made with a coffee base, as well as tea. An expert who is well-versed in all types of beverages can interact with the customer and offer a variety of beverage choices. They understand beverage trends and customer needs, and they put them together to create a vast array of beverages -- more than have ever been available before.
For example, liquid coffee, available as frozen concentrate or ambient bag-in-box, can be dispensed over ice to create iced coffee. Add milk, cream, sugar, whipped cream, flavorings -- the number of beverages that can be prepared from a simple coffee concentrate base is almost endless.
According to Michael Backman’s 2006 book Inside Knowledge, "between half and three-quarters of all beverages sold in … Malaysia and Singapore (were) not hot coffee, but these ice-blended drinks. … (that) have higher profit margins. Whereas a cup of coffee at a traditional food stall in, say, Malaysia might cost the equivalent of US$0.25, an ice-blended coffee at any of the new-wave coffee shops sets customers back the equivalent of US$2.00-4.00."
Profit potential goes up dramatically when iced coffee beverages are added to the menu, especially when very little labor is required to make these drinks. On the other hand, I experienced a cup of Jamaican Blue Mountain coffee, prepared with a siphon system, which sold for the equivalent of USUS$7.00 in Manila and the shop had other origin coffees to complete their range of offerings and it was full of customers.
Another trend that is growing in Asia is that of single cup brewing. A concept that has taken hold in the US, single cup brewing is relatively new to the Asian market. Single cup brewers use bags, pods, discs or cups to brew a single serving of coffee, tea, or another beverage. As a result, there is very little waste when a single cup brewer is used. These brewers are a good option for low volume serving environments.
It’s a new day for coffee in Asia, and a smart operator can plan for increased profitability by anticipating these trends. Coffee shops are now ubiquitous and consumers are asking for their favorite espresso-based beverages. It only makes sense to address this demand by offering superior coffee beverages. And now, more than ever, equipment is available to help you do just that.
Neal Robinson is senior vice president international sales, Bunn-O-Matic Corporation