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Coffee chains brewing coupon war to lure back customers

- Nikkei Report - Brief overview on coffee chain markets in Japan. Mentioning of UCC Ueshima Coffee Company.Cafe chains are offering promotions and enhanci


- Nikkei Report -

Brief overview on coffee chain markets in Japan. Mentioning of UCC Ueshima Coffee Company.Cafe chains are offering promotions and enhancing convenience in a desperate attempt to bring back customers, who have been keeping their purse strings tight or migrating to fast-food outlets for coffee.

Starbucks Coffee Japan Ltd. (2712) has started offering a discount to customers who return to almost any of its locations for a second cup on a single day. A cup of drip-brew coffee sold for 290 yen can be purchased for 100 yen.

On Jan. 29-30, Tully's Coffee Japan Co. will send to cell phone-using members a 50 yen coupon so that they can buy a cup of coffee for 290 yen. If the customer response is favorable, the company will offer similar coupons more often.

UCC Foodservice Systems Inc., a subsidiary of UCC Ueshima Coffee Co., will expand the number of its cafes accepting its point-earning card. The card can be now used at about 50 shops of one cafe chain and the firm plans to add another 300-store chain to the network.

Doutor Coffee Co., a Doutor-Nichires Holdings Co. (3087) unit, has started letting customers at some 1,200 cafes earn points for a reward card from video rental chain Culture Convenience Club Co. (4756). Coupons are also offered to these customers under a pilot program.

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