How Nestlé Won Over a Country That Hated Coffee: A Masterclass in Market Psychology

In the 1970s, Nestlé had a problem.

They were trying to sell instant coffee in Japan — a market that simply didn’t care for it. Despite pouring millions into advertising, in-store promotions, and deep discounts, Nestlé couldn’t make a dent. The Japanese just weren’t interested. Coffee tasted bitter. It wasn’t part of their culture. Tea was the drink of choice, and coffee felt foreign and unappealing.

Most companies would double down or pull out. Nestlé did something smarter. (Likely not possible in present times)

They hired a child psychologist.

And what came next offers a powerful lesson in empathy, behavior design, and long-game thinking — one every entrepreneur should pay attention to.

The Insight: Taste Is Emotional

The psychologist returned with a deceptively simple but profound insight:

In other words, you don’t just sell a product — you sell the feeling it creates. People like what they grew up with. If coffee wasn’t part of that experience, then no amount of coupons or billboards would change their emotional wiring.

The problem wasn’t the coffee.
The problem was when people were first exposed to it — and how it made them feel.

The Strategy: Play the Long Game

Armed with this insight, Nestlé pivoted from trying to convert adults... to influencing children. (Seems crazy but they did)

They launched a coffee-flavored candy.

Sweet. Mild. Fun. It wasn’t about caffeine or energy — it was about creating positive early associations with the flavor of coffee.

The plan worked.

As these kids grew up, they were already emotionally familiar with the taste. Coffee didn’t feel foreign anymore. It felt nostalgic. Warm. Comforting. Transitioning to actual coffee became a natural next step, not a cultural leap.

The Outcome: Present Day
Japan is now the 4th largest coffee importer in the world.

You’ll find:

• Vending machines serving hot canned coffee on nearly every block

• A thriving café culture with both local and global brands & the pursuit for purity driving insane level of coffee theatrics

• Instant coffee products tailored specifically to Japanese tastes

@thebusinessbubble

Japan. Coffee. WW2. KitKat. India. France. This is the incredible true global story in 56 seconds on how Nestle turned Japan from a tea dr... See more

They will not change until you change. Read this profound tweet.

Today I learnt about Tarro, a ~$100M run-rate revenue company that routes incoming phone orders for Chinese, Sushi and Pizza restaurants in the US to 24/7 call centers in the Philippines…Lets dive deeper..

Tarro, a restaurant technology company, has indeed achieved a significant milestone with an estimated $85M revenue run rate by the end of 2024, growing at 118% year-over-year, as reported by Sacra. The company, founded in 2012 by Steve and Dennis Lin, initially found product-market fit in 2015 by routing phone orders for small Chinese restaurants in the U.S. to 24/7 call centers in the Philippines, leveraging a combination of AI and human agents to handle orders with 99.5% accuracy in under 4 seconds.

Tarro serves over 3,500 restaurants, primarily focusing on takeout and delivery-heavy cuisines like Chinese, sushi, and pizza. Its core offerings include:

• Phone Ordering: AI-powered human agents answer calls, process orders, and handle inquiries, saving restaurants 5-10% on labor costs (around $810/month) and boosting revenue by 5-20% through increased order volume and efficiency.

• Delivery Services: Launched in September 2024, Tarro Delivery manages drivers and orders at a ~15% take rate, significantly lower than the 20-30% charged by third-party platforms like Uber Eats, saving customers 25-50% on delivery fees and encouraging repeat orders.

• SMS Marketing: Generates $8,500 annually per restaurant by driving targeted campaigns to increase customer retention and order frequency.

The company’s call centers in the Philippines employ English-speaking agents who are trained to understand restaurant menus and handle customizations, providing a seamless customer experience. This model has helped restaurants like Mr. Chen’s Chinese takeout near Boston double revenue by automating order-taking and reducing staffing needs. Tarro’s solutions are particularly valuable for small, family-owned restaurants operating on 3-5% margins, saving them over $30,000 annually in labor costs.

Tarro’s competitive edge lies in its hybrid AI-human approach, distinguishing it from pure AI solutions like Presto Voice or traditional BPO providers like Concentrix. Its pay-per-order model ensures restaurants only pay for completed orders, aligning costs with revenue. The company’s recent rebrand from Wonders to Tarro (Technology All Restaurants Run On) in 2025 reflects its expanded focus on a broader range of cuisines and services, including plans for AI-enabled order-taking and intelligent marketing.

While Tarro’s growth is impressive, challenges remain. Scaling AI to replace human agents (who cost $3-4/hour compared to AI’s $0.30-0.40/hour) could disrupt its business model, which is priced as a labor cost discount. Additionally, competitors like ChowNow and Lunchbox focus on digital ordering, while Tarro’s strength is in voice-based solutions, a niche that remains critical as over 50% of restaurant customers still prefer phone orders.

Grocery Shopping as A Competitive Sport

We use the Super Market, Millionaires Use the Michelin Guide, Billionaires use a Private Network of Luxury Food Suppliers.

Food, every one needs it, its as boring as figuring out what to make day in and day out, but when you outsource that to others it spawns a foods arms race.

AI can out do you on many things, this week I wanted to focus on some thing AI wont be able to do just yet, creating human centric networks of competence that go back to the basics of foraging for food. If you have been following along, I had alluded to a concept, what the rich do today, all of us will do in the future. Whilst AI is out to replace most of us, it will create wealth in proportions never seen before, the wealthy will try to outdo every thing and every one, when that happens can you be ready to save the day?

This note from a B$ Founder about AI

How you need to act on the “easy task” replacement wave of AI

10 Steps to Identify If Your Role Is an ‘Easy Task’ in the Age of AI

1. Audit Your Daily Workflow

   • Break down your daily tasks into components.

   • Ask: Can this task be done using a rules-based process or with a script?

2. Benchmark Against AI Tools

   • Test free or paid AI tools (like ChatGPT, Midjourney, AutoGPT, or Notion AI).

   • See if they can perform your tasks with acceptable results in seconds or minutes.

3. Check for Repeatability and Pattern Recognition

   • Easy tasks tend to be repetitive and follow a consistent pattern (e.g., summarizing emails, basic data entry).

   • If your work can be described as “rinse and repeat,” it’s likely AI can take it over.

4. Evaluate the Need for Human Judgment

   • Does the task require emotional intelligence, strategic ambiguity handling, or complex decision-making?

   • If not, it's easier for AI to replicate.

5. Track Industry Automation Trends

   • Stay informed on which roles are being automated in your industry.

   • Sites like WillRobotsTakeMyJob.com can be helpful.

6. Test Your Unique Value Proposition

   • If someone else in your niche can do your job using AI with minimal training, your role may be commoditized.

   • Ask: What is the one thing I do that’s hard to replicate by anyone or anything else?

7. Interview Top Performers in Your Field

   • Understand what skills they’re doubling down on.

   • High performers often focus on what AI can’t do yet—creativity, complex problem-solving, leadership.

8. Analyze Your Problem-Solving Layer

   • Are you solving predefined problems, or are you identifying and framing new problems?

   • The former is easy to automate; the latter is not.

9. Assess Learning Curve and Mastery

   • How long would it take a new person (or AI) to learn and perform your role?

   • If it's under a month, it’s vulnerable.

10. Map the Evolution of Your Role

• Consider how your role changed over the last 5 years.

• If it hasn't evolved much, it's a sign you're stuck in a static, and possibly easy, task loop.

If you're building a business, avoid anchoring your value proposition on tasks AI can easily perform. Instead, build around transformation, personalization, and human insight, areas where AI is still limited.

You need less managers and more doers.

A $1 billion company has operated for 53 years with ZERO managers.

Bonus! Thought of the week

This quote by Josh Waitzkin from The Art of Learning: An Inner Journey to Optimal Performance must be repeated every day:

Contrarian Take: 

Your experience gives you ceilings to not try out crazy things. Do more crazy things!

P.S : After exploring weekly, bi-weekly and other delivery formats, overwhelming support and response is to resume scheduled weekly posts. Thank you every one for your feedback, I am resuming weekly posts.