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Published on March 25, 2008

Lifestyle cafes are trying hard to be the "in" thing for trendy urban dwellers, and when customers spend Bt200 at McCafe, they can enjoy free Internet service.

Information-technology (IT) analyst Kanogon Suppatsatthee, 26, browses a website on her laptop as she enjoys fried chicken, fries and Coke.

"It has wireless [which users can automatically connect to the Web without having to buy Internet hours] and electric plugs here," she said.

"I can have a meal while working at the same time."

Nearby, her friend, 25-year-old Praparn Lung-poonlap, also an IT analyst, is pointing at a purple block on a Web page.

The two women are among 10 customers who brought their laptops to the outlet that night. They are regular customers, coming in three times a week.

They have been frequenting it more since the outlet shed its old image of being just another fast-food restaurant. Thought of as selling unhealthy foods, fast-food chains are not considered trendy or hip.

But much has changed since last year, when McDonald's began using its McCafes to attract customers.

It was a move by McDonald's new master franchisee, the Major Group, which took over the business rights from the previous operator and breathed new life into an old operation.

The group applied the concept of "lifestyle cafe" to the McCafe brand, and the results were spectacular.

Major obtained the franchise in October 2006 and proposed the cafe concept to McDonald's head office shortly after that. Last June, the idea was finalised.

The chain first began putting in the cafes in its flagship branch, renovating the outlet. Colourful lighting, wider spaces, sofas, cosy seats and easy-listening music were used to create a more relaxing atmosphere. Operating hours were also extended, making the outlets open around the clock.

The chain also set up a new counter for its new cafe products.

To hook up laptops, it provided electric plugs.

It has today transformed 18 of its 101 branches into nifty eating outlets that are attracting young professionals.

The changes come at a small price. By offering more space, it had to cut seating capacity 10 per cent. But that was justified by a surge in sales volume.

McThai chairman and CEO Hester Chew said customers were returning more frequently, because they felt more comfortable with the new settings.

Kanogon and Praparn now come in three times a week, up from once weekly before.

"It's a place where I can sit comfortably and work in the company of friends. It has wireless, which allows me to contact people and do my business easily," Praparn said.

McDonald's is not the first chain to use the lifestyle concept. It was started many years ago by Starbucks.

Starbucks positioned itself as a "daily inspiration" place, with soft green armchairs and small brown tables. It also offers electric plugs like McCafe for customers with laptops. But the service was not free, with customers having to purchase Internet hours.

However, Starbucks gained more regular customers. The 23-year-old chain also drew new customers, particularly university students who considered Starbucks a "third home". They have a quick coffee in the morning, then meet there again in the afternoon or evening after school.

"Many work from here for long hours, where they can also relax," said Sumonpin Jotikabukkana, marketing and communication director of Starbucks Coffee (Thailand).

Sitting longer does not increase spending, said Kanogon. She still spends on average Bt200 per meal. Other customers buy meals sets but sit for long periods.

Starbucks' business customers usually sit for half an hour, while students sometimes stay there half a day. Turnover per table is slower than in normal restaurants.

Of late, power bills have soared, making the cost of providing such facilities more expensive. Yet both operators consider it worthwhile to have customers sit around.

"We're happy if they sit for a couple of hours sipping a cup of coffee," said Sumonpin.

Starbucks now operates 117 branches in the Kingdom but is unclear about opening more.

McDonald's has 18 McCafes and plans to open 20 more this year.

The two operators say they do not consider each other rivals, because they have different menus and provide different settings.

Nitida Asawnipont

The Nation