• 85°C Bakery Café: Eastbound to USA

Abstract

The first store of 85°C was founded in 2004 in a night market in Yonghe. The company targets operating compound café-chain restaurants that sell coffee, beverages, bread, and cakes and provide customers individual orders or assorted combos. 85°C exhibits considerable ambitions for internationalization, founded the company in Taiwan in 2005, and prepared for overseas expansion in China, Australia, and the United States in 2006. The first US-bound shop was successfully opened in Irvine, California in 2008 and 12 branches by August 2014. Chairman Wu is keen on reaching 50 retail branches and listing in the US stock market in 2016. This case study used data from customer surveys and secondary demographic

data to estimate 85°C’s wallet shares and the number of branches that can be feasibly opened in California.

Keywords: chain store expansion strategy, market shares, wallet shares