return icon Vietnamnet.vn

Coffee chains expand as profits remain high

VietNamNet Bridge - Coffee chains in Vietnam have been developing rapidly in recent years with annual revenue growth rate of 32 percent, according to Euromonitor.

VietNamNet Bridge - Coffee chains in Vietnam have been developing rapidly in recent years with annual revenue growth rate of 32 percent, according to Euromonitor, a market survey firm.


{keywords}

The annual growth rate of coffee beans to Vietnam’s coffee chains, as revealed by coffee manufacturers, is up to 300 percent.

Starbucks, The Coffee House, Phuc Long and Highlands Coffee are always crowded, especially at weekends. 

Doan Dinh Hoang, a branding expert, said coffee chains had mushroomed in recent years because of two factors: high population of 90 million, 65 percent of them young; and the Vietnamese habit of going to cafes.

The annual growth rate of coffee beans to Vietnam’s coffee chains, as revealed by coffee manufacturers, is up to 300 percent.

A survey by IAM, a marketing academy, found that 65 percent of Vietnamese drink coffee seven times a week.

Regarding profit, one cup of coffee can be sold for 3-4 times higher than the cost price. According to Vo Mau Quoc Tien, the owner of Rita Vo coffee chain, one cup of coffee at the shop is equal to value of one kilo of unroasted coffee.

A representative of Saigon Café estimates that the investment rate for one shop is VND4-5 billion, and if business goes smoothly, profits would account for 15-20 percent of revenue.

The developer of a franchised coffee chain estimates that one shop can receive 200-300 guests a day. This means that he would be able to take back the investment capital after two years of doing business, if noting that the initial cost for one shop is $250,000.

As for take-away coffee, Hoang believes that investors would take back investment capital after 1.5 years of operation. The initial investment rate for one Passio café is VND1 billion, while revenue is VND300-500 million a month.

The attractive profit is promised in the slogan of M-Café to its franchisees: ‘get rich fast with M-Café’ (giau nhanh nhat voi M-Café).

Regarding the market scale, according to Vo Duy Phu, marketing director of The Coffee House, demand is on the rise. In Thailand and Singapore, there are brands which own more than 1,000 shops. 

Phu declined to talk about revenue, but he said The Coffee House serves 300,000 guests a month.

McCafe, which had five shops in 2015,  increased its number of shops to nine by the end of 2016. 

In November 2016, Starbucks opened its 23rd shop. Vpresso plans to open 20 shops in Hanoi and 15-20 shops in HCM City.

related news

Chi Mai

MORE NEWS

Vietnam weighs electricity price hikes in 2023

Vietnam is considering hiking electricity tariffs this year as the last adjustment took place almost four years ago while input costs of power generation have soared since.

Biggest spring blood donation event to kick off on February 6

The Xuan hong (red spring) festival – the biggest annual blood donation campaign of the season – will begin on February 6, expecting 6,000 units of the vitality liquid.

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
back_to_top