return icon Vietnamnet.vn

Big coffee chains compete with pavement sellers

Covid-19 has forced coffee chain owners to change their approach. Like small shops on the pavement, they now have to attract different segments of customers.

The image of a vending coffee shop of Highlands Coffee at a street corner in Hanoi has caught public attention.

 

{keywords}

 

 

Leading the medium- to high-end market segment, Highlands Coffee has decided to ‘go down the street’ to seek new customers. It is selling coffee products on vending cars and other kinds of drinks such as tea and bagged powdered coffee.

Highlands Coffee is not alone. Ong Bau (Promoter) is the coffee chain that pioneered the new business model. The founders of Ong Bau set an ambitious plan of opening 10,000 Ong Bau shops by 2022 based on the rapid development of small shops and kiosks. Ong Bau is also the first chain to set small kiosks in front of large shops.

Vinacafe has also tried to increase its presence by setting vending shops in populous areas and areas with a high number of visitors, especially in Phu Nhuan and Binh Thanh districts in HCM City.

The prices of the take-away cups of coffee are reasonable, just VND12,000 for a cup of black coffee and VND14,000 for milk coffee. The vending shops also sell products made by Vinacafe.

Passio has also joined the ‘pavement shop battle’. The coffee chain’s golden days were in 2014-2015, when its shops were always crowded. However, it now has to compete with many rivals, and has had to find new ways to attract customers.

At many Passio shops, one can see staff standing in front of the shops and inviting passersby to visit.

Meanwhile, Trung Nguyen Legend has recently launched a series of E-Coffee shops through franchising contracts.

E-Coffee shops, with an area of between 4 and 40 square metres, target lower-income customers and busy customers who get take-away coffee.

Analysts commented that coffee chains, which have been hit hard by the pandemic, now have to apply new business models and seek customers from the income segments they did not think of before.

The new selling method has allowed them to cut costs on rent and at the same time get more customers.

By approaching customers with low or medium income, big coffee chains are scrambling for customers who often go to small shops.

This explains why the prices of drinks at their pavement shops are lower than prices at their original shops. The price of a cup of filtered coffee, for example, is VND10,000 lower. 

Bao Han

More coffee chains open in Vietnam after Covid-19

More coffee chains open in Vietnam after Covid-19

Investors have rushed to open coffee shops as retail premises rent has become very reasonable and the market is returning to a "new normal" status.

Vietnam becomes Japan’s biggest coffee supplier

Vietnam becomes Japan’s biggest coffee supplier

Vietnam, the world's biggest producer of robusta, has become the top supplier of coffee beans for Japan as the consumption of instant coffee, which uses robusta, is soaring there amid the COVID-19 pandemic, according to the Nikkei Asia Review.

 

 

MORE NEWS

Vietnam-Asia trade reaches nearly 475.3 billion USD in 2022

Vietnam’s merchandise trade with Asia reached 475.29 billion USD in 2022, increasing by 9.6% compared to 2021 and accounting for the highest proportion (65.1%) in the country's total import-export value.

Revised Law on Medical Examination and Treatment promulgated

The Presidential Office on February 3 announced the Acting President’s order to promulgate the Law on Medical Examination and Treatment that was adopted by the 15th National Assembly at its second extraordinary session.

Volatile real estate market puts pressure on business results

Volatile real estate market caused revenue and profit of realty businesses to decrease sharply in the fourth quarter of 2022.

VIETNAM NEWS HEADLINES FEBRUARY 3/2023

CNTraveler picks Con Dao one of best island vacations globally

Six businesses lose fuel distribution licenses

The Ministry of Industry and Trade has revoked the fuel distribution licenses from six local businesses, with effect on February 27.

ChatGPT and AI booms in Vietnam

AI and ChatGPT technologies are forecasted to explode, creating a new wave of technology this year.

Fruit exports to China increase sharply

The recovery of exports to China will contribute to boosting Vietnam's fruit and vegetable industry in 2023.

Former chairs, vice chairs of Thai Nguyen disciplined

Prime Minister Pham Minh Chinh has taken disciplinary measures against two former chairmen, two former vice chairmen and one vice chairman of the People’s Committee of Thai Nguyen Province.

Hotel in Da Lat fined for discriminating against foreign tourists

The People's Committee of Da Lat City in the Central Highlands province of Lam Dong on Wednesday fined Nguyen Thi Kim Thoa, director of Dream Flower Hotel Ltd. Co, for discriminating against tourists.

State Treasury to auction VND400 trillion G-bonds this year

The Vietnam State Treasury (VST) has announced a plan to auction VND400 trillion worth of government bonds on the Hanoi Stock Exchange this year.

Ministry proposes adjusting fuel prices every Thursday

According to MoIT, shorter price cycles are better at keeping domestic prices closer to the global oil prices, even during holidays (except Tet) to minimise the risk of market disruptions.

Indian journalist impressed by Ha Long Bay cruise

Aatreyee Mohanta, an Indian journalist of Telegraph India, enjoyed plenty of quintessential experiences in Vietnam as she travelled on the Aspira Cruise around Vietnam’s Ha Long Bay,

VIETNAM BUSINESS NEWS FEBRUARY 3/2023

Heavyweight shares help stop market from a fall

Communist Party of Vietnam – leader, companion of nation

On February 3, 1930, Nguyen Ai Quoc chaired a conference to merge three communist organisations in Vietnam into the Communist Party of Vietnam (CPV), marking an important milestone in the country’s history of national construction.

HCM City to open job transaction floors to facilitate businesses in recruiting workers

Ho Chi Minh City's authorities will organise online and offline job transaction floors in the Southwest and Central Highlands regions to support businesses in recruiting labourers.
back_to_top