Bubble tea wave is over, it's time for lemon tea chains

As drinking bubble tea is no longer fashionable, the profit from bubble tea shops is on the decrease. Investors are rushing to open lemon tea shops instead.

Lemon tea shops have been mushrooming in the last several months. They are seen in close proximity to one another on some streets. Ta Quang Buu, Nguyen Van Huyen, Van Cao and O Cho Dua are now called lemon tea streets.

Bubble tea wave is over, it's time for lemon tea chains



On a small section of street, 500 meters long on Cau Giay street, there are two shops, while another one is opening son. Each of the shops has a large area of up to 100 square meters.

On Ta Quang Buu street, there are three shops belonging to three different chains.

Analysts said investors had rushed to open lemon tea shops because of the attractive promised profits, 25-30 percent. Meanwhile, the initial investment rate for lemon tea shops is reasonable.

Analysts said investors had rushed to open lemon tea shops because of the attractive promised profits, 25-30 percent. Meanwhile, the initial investment rate for lemon tea shops is reasonable.

VnExpress quoted sources as reporting that the required investment rate for one lemon tea shop is between VND200 million and VND500 million, depending on the locations and the premises. The franchise fee is VND50-70 million.

 


If the franchise fee is zero dong, shops will have to pay 5-8 percent of total revenue to franchisers.

The investment rate proves to be much more reasonable compared with the investment for milk tea shops, estimated at several billion dong. The business field can bring the profit margin of 20-30 percent in case of stable operation.

Nguyen Huyen Dieu, the owner of a lemon tea shop on Xa Dan Street, said she can sell up to 2,000-3,000 glasses of lemon tea a day with revenue of up to VND15 million. If noting that the initial investment capital is VND450 million, Dieu would be able to take back the investment capital after 2-3 months.

Nguyen Thi Ngan, the owner of a shop on Tran Dai Nghia street, said the days from Thursday to weekend are peak days with revenue of VND8-12 million a day.

Lemon tea shops mostly target students and low income earners, so they set prices for drinks at reasonable levels, VND10,000-50,000. In order to increase revenue, lemon tea shops sell coffee, yogurt and some types of snacks as well.

According to Ngan, retail premises determine 60 percent of the success of business. The shops must be large enough to accommodate customers on rainy and cold days. On the days with good weather, customers would like sit in the open air, so the pavements need to be large.

The weather also determines the revenue of the shops. The revenue may be 20-30 percent lower on rainy days.

Linh Ha 

Vietnam’s coffee better known in world market

Vietnam’s coffee better known in world market

The door for Vietnam’s coffee to reach out to the world market has opened more widely for small and medium roasters.

Low coffee prices upset farmers in spite of bumper crop

Low coffee prices upset farmers in spite of bumper crop

At this time, coffee farmers in Binh Phuoc, Dong Nai and Dak Nong provinces are entering harvest season. 

 
 

Other News

.
Covid-19 crisis leads to opportunity to expand markets
Covid-19 crisis leads to opportunity to expand markets
BUSINESSicon  27/03/2020 

2020 is a special year for Vietnam because of the 4.0 industry revolution and Covid-19 outbreak.

Banks slash fees for interbank fund transfers
Banks slash fees for interbank fund transfers
BUSINESSicon  26/03/2020 

Thirty-seven commercial banks have confirmed the reduction of fees for fast interbank fund transfers following the move of the National Payment Corporation of Vietnam (NAPAS) to halve the switching fees for local banks from Wednesday.

Foreign currency market eases following central bank’s intervention
Foreign currency market eases following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on Wednesday depreciated against the Vietnamese dong after the State Bank of Viet Nam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

Vietnamese currency more stable than other regional peers
Vietnamese currency more stable than other regional peers
BUSINESSicon  26/03/2020 

Though the unofficial value of the VND has now fallen about 3 percent against the USD, the rate is still a smaller depreciation than that seen by most of Vietnam’s regional peers and is expected to stabilise around that level.

VN garment-textile group to ask for permission to export anti-virus products
VN garment-textile group to ask for permission to export anti-virus products
BUSINESSicon  26/03/2020 

Vietnam National Garment and Textile Group (Vinatex) will ask for the Government’s permission to export anti-virus products as a measure to overcome difficulties caused by the novel coronavirus (COVID-19) pandemic.

COVID-19 affects Vietnam’s automotive industry
COVID-19 affects Vietnam’s automotive industry
BUSINESSicon  26/03/2020 

The spread of the COVID-19 pandemic in almost all countries and territories worldwide is likely to force automobile manufacturing and assembly firms in Vietnam to scale down operations and even close their factories.

COVID-19 brings more business to insurers
COVID-19 brings more business to insurers
BUSINESSicon  26/03/2020 

The COVID-19 pandemic has so far hurt many businesses in the country, except the insurance industry.

COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
BUSINESSicon  26/03/2020 

There are many problems associated with COVID-19, but one major issue caused by the global pandemic is its virtual destruction of the travel industry.

Coronavirus: US Senate passes $2tn disaster aid bill
Coronavirus: US Senate passes $2tn disaster aid bill
BUSINESSicon  26/03/2020 

The largest government economic stimulus in US history is approved, despite a last-minute row.

Foreign currency market stabilised following central bank’s intervention
Foreign currency market stabilised following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on March 25 depreciated against the Vietnamese dong after the State Bank of Vietnam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

COVID-19, dimmed global outlook weigh on bond market
COVID-19, dimmed global outlook weigh on bond market
BUSINESSicon  26/03/2020 

The novel coronavirus (COVID-19) pandemic and deepening global economic uncertainty are putting great pressure on Viet Nam’s local currency bond...

How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
BUSINESSicon  26/03/2020 

The COVID-19 outbreak has hit fast-moving consumer goods (FMCG) businesses but not all categories and retailers will suffer negative impacts,...

Wood product processors need to restructure production due to COVID-19
Wood product processors need to restructure production due to COVID-19
BUSINESSicon  26/03/2020 

Local wood processing enterprises need to continue reorganising their production and business activities to deal with difficulties during the novel coronavirus pandemic, according to the Ministry of Agriculture and Rural Development.

Ministry targets no drop in exports this year despite COVID-19
Ministry targets no drop in exports this year despite COVID-19
BUSINESSicon  26/03/2020 

The Ministry of Agriculture and Rural Development has targeted no drop in export value of agricultural products this year, even though the sector was hit hard by the novel coronavirus (COVID-19) pandemic from the beginning of this year.

BUSINESS NEWS HEADLINES MARCH 26
BUSINESS NEWS HEADLINES MARCH 26
BUSINESSicon  26/03/2020 

Commercial banks support COVID-19-hit businesses

PM orders suspension of signing rice-exporting contracts
PM orders suspension of signing rice-exporting contracts
BUSINESSicon  26/03/2020 

Prime Minister Nguyen Xuan Phuc has ordered a halt of signing new rice-exporting contracts, the Government Office said in a latest document concerning this matter.

Two Vietnamese drop out of billionaires list
Two Vietnamese drop out of billionaires list
BUSINESSicon  26/03/2020 

The list of the world’s dollar billionaires announced recently by Forbes shows that the number of Vietnamese billionaires has fallen from five to three.

Banks face bad debt risks amid pandemic
Banks face bad debt risks amid pandemic
BUSINESSicon  26/03/2020 

After two years of strong recovery and high growth, the banking sector is facing major challenges because of Covid-19.

VN farm exports head for Chinese market again
VN farm exports head for Chinese market again
BUSINESSicon  26/03/2020 

Signs of Vietnamese farm export recovery have appeared as the Chinese market has begun importing products again.

COVID-19 to pull Vietnam’s growth down to 6.3%: Fitch Solutions
COVID-19 to pull Vietnam’s growth down to 6.3%: Fitch Solutions
BUSINESSicon  25/03/2020 

Fitch Solutions on Tuesday revised down Viet Nam’s economic growth in 2020 to 6.3 per cent from 6.8 per cent previously due to the Covid-19 outbreak.

 
 
 
Leave your comment on an article

OR QUICK LOGIN