In coffee obsessed Hong Kong, independent shops are fighting for their slice of the cake

Walking into Brew Bros Coffee in the gentrifying neighbourhood of Sheung Wan, you immediately recognise you are in a “hipster” cafe.

You are greeted by few seats, minimalist decor, and the sound of steam venting from a large coffee machine, churning out macchiatos and flat whites.

The shop, tucked away at end of a cul-de-sac, is the entrepreneurial dream of co-owners Louie Chan Lo-yi and her husband. But now they are questioning whether their business will still be there in a few years.

“[We picked up the option] to renew our contract for another two years and our rent went up 15 per cent. But in another two years we think it will go up 30 to 50 per cent, which is really hard to afford,” Chan, 33, said.

“We may have to move or expand our business.”

In the last decade, speciality coffee shops have become a common sight in certain districts in Hong Kong. Coffee culture exploded after young university students returned from studying overseas and wanted to emulate the western cafe experience.

According to the Hong Kong Professional Coffee Association, there are around 250 speciality coffee shops, that are not part of major chains, in Hong Kong.

But some are struggling to stay afloat against rising competition and rents.

Coffee and logistics costs are also a concern for Chan. She imports coffee beans from Melbourne every week and has seen costs rise by 10 per cent annually.

The struggle to stay in business has pushed cafe owners to think creatively.

With rapid gentrification in areas such as Sheung Wan, Kennedy Town, and Tai Kok Tsui, a flood of hipster coffee shops followed, serving drinks made from beans sourced directly from coffee farms.

Some shop owners fly to these farms to personally inspect the quality of the coffee beans.