When Chinese coffee giant Luckin Coffee moved into the unit next to his neighbourhood cafe in Singapore, Folk Yard owner Chew Yit Shan grew nervous.
Luckin launched with an aggressive promotional deal of S$1 (78 US cents) per cup, served in just two minutes. In the first few months following its arrival, Chew saw sales at his independent cafe drop by 15 per cent.
But once the initial hype had died down and the promotions ended, Chew said regular patrons returned and coffee sales bounced back.
“We had to explain to customers that we offer something different. It’s the simple things, like knowing the baristas and coming back to the same places in the neighbourhood,” Chew said. “There’s a level of interaction and familiarity that becomes part of their routine, and that goes beyond the product itself.”