Café chains earn big money in Vietnam
Vietnamese consumption of coffee increased from 0.43 kilograms per head per annum to 1.38 kilograms in the 2005-2015 period, a report had found.
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Located in high-rise buildings and shopping malls, Highlands Coffee has begun thriving again after a period of slowdown. The brand first appeared in 2002, founded by a Vietnamese American. In 2012, Highlands Coffee was taken over by Jollibee Foods from the Philippines.
The chain now has 230 shops, and its revenue is the highest among café chains.
In 2017, Cao Nguyen Coffee Service JSC, the owner of Highlands Coffee, reported revenue of VND1.237 trillion, a sharp increase of 47% over the year before.
The figure is four times higher than Phuc Long’s, eight times more than The Coffee House and three times more than Starbucks. The selling prices at the chain are lower than products of the same kinds at other chains.
Declining to reveal its revenue, Nguyen Hai Ninh, the founder of The Coffee House, affirmed its chain ‘has been making profit’. The coffee chain has received more than 20 million customers so far.
According to analysts, the shops are not situated in ‘golden land areas’, but they still can attract customers thanks to the decor. The Coffee House plans to have 700 shops throughout Vietnam in the next five years.
The business has wrapped up a deal on taking over Cau Dat Farm and has established a new chain – Flagship The CoffeeHouse Signature.
As for Trung Nguyen Coffee, owned by the ‘Coffee King’ Dang Le Nguyen Vu, the revenue of the best café is VND2-3 billion a month, while other shops of the chain earn VND400-500 million.
Trung Nguyen Coffee changed its design last June. A representative of Trung Nguyen revealed that the investment in the campaign was relatively high. There are 16,000 books in 12 various fields at cafes and spaces for guests to read books and relax.
If the model succeeds, all 80 shops of Trung Nguyen chain will apply the same model in the future.
Phuc Long is also among the best known café chains in Vietnam with annual growth rate of 7%. However, the number of coffee drinkers at the chain is not high, and its revenue comes mostly from milk tea.
In the north, Cong Coffee has become well known in Hanoi with 50 shops built in the last 10 years. It plans to open 1-2 more shops each month from now to 2020.
The Q3 report of BMI Research showed that 2.55 million bags of roasted coffee were consumed in the 2017-2018 crop.
