After the first store opened, %Arabica is preparing to open a second business location in Ho Chi Minh City. %Arabica is a famous coffee chain in Kyoto (Japan), founded by Mr. Kenneth Shoji in 2014. This brand is operating 140 stores worldwide .
In Vietnam, the chain has ambitions to expand its presence in Hanoi , Hoi An, and Phu Quoc. After many international coffee chains appeared in Vietnam, the appearance of %Arabica has made the market even more exciting.
Previously, Café Amazon, Thailand’s largest coffee chain, was present in Vietnam. This chain has developed 19 stores in the southern region, including 15 locations in Ho Chi Minh City.
Founded in 2002, Café Amazon is Thailand’s largest branded coffee chain with 3,900 stores. It plans to open 1,000 stores outside Thailand by 2025.
Starbucks is an American coffee chain that has been operating in Vietnam for 10 years and is gradually approaching its goal of opening its 100th store this year. By the end of 2022, Starbucks will have 87 stores, mainly concentrated in Ho Chi Minh City with 50 points of sale, Hanoi with 25 points, followed by Hai Phong, Hung Yen, Da Nang , Nha Trang...
Leading the market in both scale and revenue is Highlands Coffee. Although it is a Vietnamese coffee chain brand, Highlands Coffee was acquired by Jollibee Group (Philippines) in 2011.
Highlands Coffee currently has 609 stores nationwide. Highlands Coffee's revenue is expected to recover this year as it continues to open more stores. In addition to Vietnam, Highlands Coffee also has more than 50 business locations in the Philippines.
In 2022, the market was abuzz with news that Jollibee was looking for a partner to sell 10-15% of Highlands Coffee's shares. This coffee chain was valued at around 800 million USD.
The Coffee Bean & Tea Leaf is owned by the same chain as Highlands Coffee. This is also an international coffee chain that has been present in Vietnam since 2006. However, the number of stores of The Coffee Bean & Tea Leaf is quite modest, only reaching 15 up to now.
The Coffee Bean & Tea Leaf was founded in 1963 in Los Angeles (USA). In 2019, the Jollibee food group (Philippines) completed the acquisition of this coffee chain.
Temporarily Collapse
According to industry experts, only Highlands Coffee, Starbucks... operate effectively when developing large-scale chains. As for Café Amazon, The Coffee Bean & Tea Leaf,... it is inevitable that they will encounter difficulties in the early stages. Entering Vietnam at this time is still just a foundation for the brand to develop long-term, and profits cannot be calculated immediately.
In the context of declining consumption, the strategy of chain coffee shops is to temporarily downsize to focus on long-term sustainable development.
At the end of 2022, Highlands Coffee changed its brand logo for the fourth time. At one point, the chain even invested in mobile cars to hit the streets, selling coffee for less than 16,000 VND. Highlands Coffee had been involved in a scandal over unpaid rent and closed several locations.
Like Highlands Coffee, Starbucks has closed its stores at Rex Hotel (Nguyen Hue Street, District 1, Ho Chi Minh City), Starbucks Press Club (Hanoi) and Starbucks Lan Vien (the first store opened in Hanoi). Instead of opening sales locations in prime locations in the city center, Starbucks has shifted to small stores, new urban areas, and offices.
Coffee chains are also boosting online sales on online delivery platforms such as ShopeeFood or Grab. Starbucks has opened a booth on e-commerce platforms to sell cups, water bottles, cloth bags, etc.
Meanwhile, Café Amazon or %Arabica are cautiously opening more stores despite their large financial potential. For example, Café Amazon is 60% owned by PTT Oil and Retail Business (OR) and 40% by the retail giant Central Group, both from Thailand.
Despite having many advantages, not all foreign coffee chains are successful. NYDC - New York Dessert Café, Gloria Jean's Coffees, Espressamente Illy had to say goodbye early due to ineffective business.
| Research by the World Coffee Portal predicts that coffee chains in Vietnam will reach more than 5,200 stores by 2025. |
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