Caffebene USA Seeing Success Through its Glocalization Strategy
March 12, 2015 // Franchising.com // Caffebene, Inc., a South Korean coffee franchise directed toward complex cultural space, has seen successful numbers in sales since its launch into the US market in 2012 by catering its services and business to the locals/natives. Unlike many Korean companies that have faced stagger since its entry into the global market, Caffebene targeted Americans from its beginning stages and have gained attention from the locals through its business strategy.
According to Caffebene USA, one of the local franchisee David Gabbny is planning to open a Caffebene in coming November. Gabbny has experience in the restaurant industry for more than twenty years. Last April, Gabbny saw a franchise advertisement in The New York Times and became interested in Caffebene. After reviewing the brand, David Gabbny decided to pursue the franchise because of Caffebene’s distinct store interior, diverse menu, and proper educational system that differs from many other franchises out there. David Gabbny’s Caffebene is about 3,000sq ft and will open in Little Falls, New Jersey. Drive-through system is currently under development to accommodate the typical suburban market seen in the States.
Mr. Amit is another franchisee that demonstrates Caffebene’s expansion into the true American market. Mr. Amit is an Indian-American that is much familiar to the franchise market as his family has been in the Dunkin Donut business. Despite his exposure to one of America’s biggest coffee chains, Mr. Amit decided to sign the contract with Caffebene for similar reasons as Mr. Gabbny.
Caffebene has been making more contracts with the local population like Mr. Gabbny and Mr. Amit. 70% of the newly signed Caffebene franchisees are of races other than Korean and the fact that the franchisees in Boston, Astoria, and Hoboken are also non-Korean locals. Such reflect Caffebene’s goal of glocalization strategy set out from the beginning of Caffebene’s debut into the US market.
Caffebene’s glocalization strategy is reflected upon its expansion areas. In the beginning, Caffebene concentrated on the East Coast to focus on the effectiveness of distribution and brand centralization but now, the quickly growing interest from the Americans have helped Caffebene further expand throughout the entire nation. Recently, Caffebene expanded into Florida, Missouri, Chicago, and more. With this, Caffebene has expanded into twelve different states.
It is not an overstatement to say that Caffebene has been fairly successful in the states, which can be proven with current franchises signing for second locations. Last May, the franchisee of Urban Champaign location in Illinois signed another contract with Caffebene for second location. Similarly, Mr. Chen, the franchisee of the Boston location that opened up last month already signed the contract for second location. The franchisee of the New York Flushing location, which opened March of 2013, also signed the contract for second location as well. Last but not least, the franchisee of the newest location in Financial District, NYC, who is also the owner of five frozen yogurt shops, is waiting to open his second Caffebene location right across from The New York Times building in New York City.
Caffebene can credit its success in the states to its set goal in glocalization strategy from its beginning stages. Localized franchise system and menu selection that caters to the locals are enough to have moved the hearts of many Americans to choose Caffebene. Such march forward in the franchise business definitely sets Caffebene as an example to other Korean companies in the global market.
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