Wu Cheng-hsueh, who founded 85°C single-handed, is a demon for managing chain stores. Ironically, he admits to no particular fondness for coffee, and says that his wife was the one who originally dreamed of opening a coffee-and-cake shop. (Hsueh Chi-kuang)

The home-grown Taiwanese cake-and-coffee chain store 85°C, which prides itself on "five-star indulgence at everyday prices," has in only three years since its founding become the biggest chain of its kind on the island-surpassing even Starbucks (operated in cooperation with Taiwan's powerful Uni-President Group). Moreover, it was selected in 2007 as one of Taiwan's most promising "Golden Brick" firms, the only service-sector company to make the list. (See last month's issue for more details.) Although controversies have dogged the company since its opening, it now sells 75 million cups of coffee and 54 million slices of cake in a year. Not only did revenues for 2007 hit NT$2.5 billion, they grew at a 30% pace over the previous year, despite sharply rising prices for flour, sugar, and dairy products. Although recently there have been disputes over the encroachment of shops onto public sidewalk space, and over incorrect expiry dates on products, the firm sees such oversight by consumers and the media as a chance to step back for a moment and improve its management methods.

Taipei's venerable Lungshan Temple sees an uninterrupted stream of visitors all year round. But the 85°C coffee shop across the way, located in the corner storefront on Kuangchou Street, is by no means far behind. Many elderly people or housewives just coming from worship, as well as office workers and young lovers, gather in this tiny shop of only 35 square meters' floorspace to buy coffee that goes for a mere NT$35 (just over US$1) a cup, slices of cake that sell for about the same, and-a recent innovation at some of the company's directly-operated shops-all kinds of oven-fresh breads and pastries.