Chan Tha and Moe Zat Kha enjoy coffee at Thiripyitsaya Sky Lounge on the 20th floor of Yangon’s Sakura Tower.

TRADITIONALLY, Myanmar is a nation of tea lovers. Until a decade ago, coffee wasn’t really on the menu as there was little demand or appreciation for the brew among local customers.

Into the early 1990s, if coffee was listed on a menu it was either brewed coffee or instant mix – there were no cappuccinos, espressos or café lattes like you will find today.

Since 1995, however, Myanmar has seen a number of coffee shops try to introduce western-style coffee culture here with varying degrees of success. The pioneers in the market, such as Fuji Coffee House on University Avenue in Kamaryut township, faced several initial hurdles, including customers’ attitudes and sourcing the ingredients and machines.

“When we opened in 1996, most people knew very little about coffee,” recalled U Than Zaw, the manager of Fuji Coffee House. “We had to work hard to introduce differ-ent types of coffee to customers. I can even reme-mber one day when we didn’t receive any customers until about 3pm.”

He said that it was difficult to source ingredients and the lack of commercial coffee making machines also made the initial years tough.

“To start off with, we only had domestically-produced coffee makers to make the coffee with,” he said. Prices were high because the ingredients had to be imported and this was another barrier to attracting customers.

“While a cup of tea sold for about K100 at that time, a cup of our coffee retailed for K250. So, the price was relatively high for most people,” he said, adding that the business initially struggled to make a profit.

Even today nearly all of the ingredients – coffee beans, dairy products, sauces and syrups – are imported from foreign countries like Japan and Singapore, he says.

But U Than Zaw said there was always a strong belief in the potential of the market for coffee and the Fuji team worked hard to improve consumers’ coffee knowledge.

“Every time we put a new type of coffee on the menu, we explain about the coffee and offer free tasting to customers,” he said.

Over 13 years, Fuji has established a strong foothold in the up-scale coffee shop market and now offers a wide range of products, including nearly 40 types of both hot and cold coffee.

“People are gradually accepting coffee and sipping a coffee at an up-scale coffee shop has become a lifestyle choice for well-to-do people.”

U Than Zaw said sales over have increased by approximately 50 percent over the past five years but he believes the market will continue to increase in size.

U Zaw Naing, food and beverage manager of the Thiripyitsaya Sky Lounge, on the 20th floor of Sakura tower in downtown Yangon, agreed there was a great deal of potential in the market but said starting an up-scale coffee shop required a significant investment.

“I think the prospects for the up-scale coffee shop market are very good and will improve as incomes and living standards increase,” said U Zaw Naing. “Our company is aiming to make a profit in the long term but the initial investment for a coffee shop is quite big. For example, a commercial coffee maker costs about US$6000-7000.”

To be successful, he said, coffee shops have to offer more than just coffee. Food is also important and Thiripyitsaya Sky Lounge sells European, Asian, Italian and Japanese dishes to a mixed clientele of mainly expatriates, businesspeople and teenagers.

“While it’s possible to be successful by just selling coffee, the business’ prospects are much stronger if it can meet all of a customer’s needs,” he said. The quality and price of the products, service, location and decor are the critical ingredients for success, he added.

Juree Setavoraphan, managing director of the Yangon franchise of Thai company Black Canyon Coffee, said a coffee shop’s success depends as much on the atmosphere as the taste of the coffee.

“Good coffee, good food and a good atmosphere are the main reasons for attracting customers to a coffee shop. The coffee shop should be a place for people to come and chat together,” Ms Setavoraphan said. “Going to a coffee shop means you like the taste and the atmosphere. Decoration’s also quite important. Before the customers see the coffee, they would like to feel the atmosphere. They want to feel like they are at home, somewhere convenient and comfortable.”

She said the majority of Black Canyon’s customers in Yangon are local and this made her optimistic about the market potential and could be as successful as their Thai counterparts.

“Coffee shops in Thailand are a place where people go to hang out or talk business. They’re everywhere – from shopping centres to airports.”