SINGAPORE: When we opened our flagship Ya Kun coffee stall at 1 China Street in 2001, we hung a corkboard on one of the walls, along with a stack of post-it notes and welcomed customers to leave their feedback or thoughts on their dining experience.
Initially, posts were sparse, but every night, my mother would go to the stall, take them down and painstakingly reply to each of them – thanking them for their patronage or addressing their feedback – before pinning the replies up the next day.
Before long, this chat board caught on and we were getting daily comments. Regulars and tourists alike were pinning up their thoughts, leaving comments and even stating where they hailed from and how much they enjoyed this uniquely Singaporean breakfast.
The list grew quickly to include notes from visitors hailing from Japan, the Netherlands, Mexico, Switzerland and South Africa. It did not take long for us to realise that while we were hosting the world at our stall, we could also bring our kopi and kaya to the world.
The first coffee stall by Loi Ah Kun still serves kopi and kaya toast at 1 China Street.
That was 16 years ago. Today, Ya Kun’s coffee is served in nine countries and in more than 100 coffee stalls.
Beginning with Indonesia, Ya Kun now has stores in Taiwan, South Korea, the Philippines, Myanmar, Thailand and China. In a matter of weeks, we will be proudly brewing for the first time in Macau as well.
NO SHARED HERITAGE OVERSEAS
While we have expanded to so many locations overseas, every store runs in a manner that is still recognisably Singaporean.
Every outlet still brews their kopi and teh using the pot and sock coupled with the same pulling and occasional twirling. The kaya toast remains toaster grilled and the soft-boiled eggs are cooked to marble-like consistency.
We don’t do this because of vague sentimentalism, much as we take our heritage and brand very seriously. We do it because it’s a winning formula that seemed to have worked with consumers.
People from all over the world tell us they like the traditional Singapore kaya toast breakfast set, despite coming from vastly different backgrounds and culinary tastes. The Koreans like the coffee for its sweetness and fragrance, while the Westerners love it for its strength and simplicity. The Japanese love the kaya toast for its crispiness while the Chinese love dunking it into the soft-boiled eggs.
The soft-boiled eggs are the only exception to the unreserved welcome our products receive everywhere. Over the years, especially in cultures not used to having such eggs for breakfast, we have learnt not to impose that particular style of eating on any foreign stores.
In such cases, a pan-fried sunny side-up egg offers a suitable replacement. It is a fine balance between adapting to the local culture and staying true to our menu and so each item is scrutinised carefully before introduction.
A Ya Kun outlet in Hong Kong. (Photo: Ya Kun/Facebook)
Staying true to our Singaporean roots has been the bedrock of our expansion philosophy. We don’t do this because of values of integrity, sincerity and accessible to consumers, much as these are important business concepts that we hold dear.
You see, Ya Kun has always been a family-owned, family-oriented, home-grown business and elements of that kinship must be evident whether we are in Indonesia, South Korea or China.
It is not easy to bridge the cultural and commercial gaps when you expand overseas.
Among the different challenges that we have faced taking the brand abroad, one significant hurdle is something I call the issue of shared heritage.
The story of my grandfather Loi Ah Kun, the kopitiam culture and the traditional kaya toast breakfast all lends itself to a heritage that Singaporeans share and a common memory that we can all tap on.
This is not the case when we break ground overseas. For example, countries like Japan, South Korea and Myanmar have their own breakfast culture and the concept of a heritage coffeeshop is as foreign as hamburgers.
To overcome that, we have repositioned ourselves as a contemporary, trendy cafe that serves an alternative brewing style and type of coffee from what they are familiar with.
A recently opened store in Bangkok. (Photo: Ya Kun/Facebook)
Close neighbouring countries like Indonesia and Malaysia may share similar culinary experiences and eating habits as Singapore. But when we move further north, all that sense of nostalgia quickly dissipates.
This means that unless someone has a fond experience of having breakfast toast and drinking kopi in Singapore before that, we are simply an alternative coffee chain that serves a stronger kind of brew and a greenish odd-looking coconut jam called kaya on toast.
Breakfast is a highly personal routine to most people and to get someone to try something new is quite difficult.
NO RIGHT COUNTRY, JUST RIGHT TIMING
For our business, this means that we require a much longer runway to establish ourselves in that country’s market. The harsh truth of what it takes to expand overseas is that you must be prepared to be in it for many years to understand the people and the culture and despite all that, success is not guaranteed.
So we have often been asked how do we strategise and select the right countries to enter, to which my reply has been that there is no right country, just right timing.
Indonesia, our biggest presence outside of Singapore has close to 30 stores and over the past 10 years, we have grown to be a part of the local community.
In Myanmar, a Ya Kun coffee stall greets you both at the airport, as well as when you arrive at the city centre.
There is a difference of 10 years between the establishment of Ya Kun in Indonesia and Myanmar, and yet both are enjoying success in their respective stages of the business cycle.
A SUITABLE PARTNER IS THE MOST IMPORTANT THING
While we apply a common lens when considering whether to enter a market, for example taste profiling, demographic study, economic situation and dining habits among others, the most important criterion of them all is finding a suitable partner.
We are under no illusion that we understand the intricate habits and behaviours of the locals and their receptivity towards a foreign brand. Patience and perseverance are key traits in locating the right partner, one who shares the same values and vision for building the brand in each respective country.
Government agencies like IE Singapore have also been instrumental in providing both the support and the confidence when we explore new territories.
The interior of the Ya Kun at 1 China Street. (Photo: CNA)
Of course you can have the best business concept, strategy and systems, but you also need good people who make success a reality.
When we opened our inaugural store in Shanghai, China, we seconded one of our best trainers to manage the outlet and brew the coffee there. He was stationed at the stall during operating hours and would regularly give us information on the profile of our customers, their ordering habits and their requests.
One particular afternoon, he informed me, in real time, that there was a gentleman sipping coffee in our outlet with tears trickling down his cheeks. Naturally, I panicked and asked him to approach the customer to see what was wrong.
It was only after a few moments did I receive a reply that this gentleman was Singaporean and the aroma of the coffee in the winter brought back memories of his native country. It made him reminiscent of home.
This incident drove the following point home to me: While expansion overseas is the next phase of our business strategy, we are invariably striving for something bigger than simply setting up more outlets.
With each outlet we open and every cup of coffee we serve, we are connecting with our fellow Singaporeans overseas and creating a new memory for the local customers.
We are gently and humbly promoting the Singapore lifestyle in new areas and reaching out to them to introduce what has become second nature to us: Our traditional breakfast and morning routine.
This is our way of life – whether it is breakfast with our families, a post-lunch chat with colleagues or a business discussion over a cup of kopi, our coffee stalls are places that provide the means for these events to happen.
The ability to provide a glimpse – a taste – of Singapore is now what drives us to reach further and wider in the world as we look ahead. It is through this simple fare that we hope to bring people together in kinship, friendship and partnership.
Jesher Loi is a grandson of Loi Ah Kun and currently the director of Branding and Market Development at Ya Ku Kaya Toast.
