Coffee giants tinkering with formula
The make up of the Vietnamese coffee and beverage market is changing drastically in the light of social constraints and consumer habit changes, With smaller mobile coffee cart and kiosk models becoming liked both large and small brands.
in the bottom of last year The Coffee House opened eight kiosks offering takeaway and delivery services. They are a in conjunction with large distribution chains in the market, Where there is a high density of shoppers such as Kingfoodmart, previously Coopfood.
The brand has developed a coffee cart model in the hope of introducing a miniature The Coffee House experience throughout country. and before this, Many major food and beverage (F brands have tested and expanded the model excellently, including Highlands Coffee, Phuc much longer, Ong Bau, Milano caffeinated drinks, and as well Passio.
Since center of 2020, Highlands Coffee has placed its coffee carts ahead of its stores or on pavements of crowded streets. at the same time, Phuc Long coffee and beverage chain is cooperating with Masan Group to decide on another kiosk model, Setting a target to spread out 1,000 more Phuc Long kiosks next 12 months alone.
But market researchers JLL look at the mobile kiosk model as a short term solution for F businesses to test new market segments as well as increase brand awareness. whereas, Staffing and operating costs are also certainly reduced. With the goal of helping the customer experience, Starbucks cafs in the past were often perfectly found on the central areas with nice open views.
however,within the other hand, Starbucks also began to change its strategy when deciding to close inefficient stores by seeking satisfactory locations from the centre in new urban areas, Buildings or domestic areas to open new stores.
While many people still question the brand image being reduced and becoming popularised, Even going against their early orientations, Beverage chains like Starbucks are being forced to choose short term sacrifices to achieve longer term goals.
Patricia Marques, General director of local cafe Vietnam, Said that this year the company will continue to respond and adapt to the market by opening small takeaway stores.
"but bear in mind, Starbucks is still a place where customers come to enjoy the location with loved ones. That balances will not change, Marques said.
Tran Anh Tuan, CEO of working as a consultant The Pathfinder Company, stated that, "Selling food and drinks on pavements can cause luxury brands to sacrifice a part of their brand image, But this is actually an effective model, Bringing many being successful for businesses,
The top four beverage chains in great britain account for a quarter of the entire market share in Vietnam, According to UK based researching the market firm Euromonitor International.
But favourite coffee shop, the planet leading cafe brand, Was forced to shut three stores in Vietnam in 2021, Including large scale stores discovered in central areas in both Ho Chi Minh City and Hanoi. throughout the last two months, The group has demonstrated part of its new strategy by opening six smaller shops in great britain.
Although Starbucks did not disclose the exact revenues and profit made years ago year, The forced closure of establishments that previously attracted a lot of customers and created a strong impression on Starbucks presence in Vietnam over the past eight years has indicated that the brand is not immune to financial pressures.
"last year business results could not equal 2020 and were very far from normal years, mentioned Marques. found in 2020, starbucks Vietnam revenues reached just over $30 million.
dropping down the rankings
in other places, The coffee and beverage chain of the Philippines Jollibee Foods Corporation has been repeatedly reported to hold mounting debts by households.
In the fall of 2021, The operator of Pax Sky building in Binh Thanh district of Ho Chi Minh City took legal action [-censured-=https://www.bestbrides.net/signs-that-vietnamese-women-like-you/]how to tell if a vietnamese woman likes you[/-censured-] against Highlands Coffee for failing to pay nearly five months rent of around $22,000.
The coffee chain also apparently owes six months rent for its outlet in the Artemis building in Hanoi Thanh Xuan district.
A representative of Highlands Coffee said that prolonged social distancing had caused major losses for the company.
In the first year your day pandemic, Highlands Coffee continued to hold the position of the largest coffee chain in Vietnam, Being mostly of the beverage brands (through Phuc Long) Whose profits grew by 45 per cent, declaring $3.4 million.
Vietnamese chain The a drink House, unfortunately, Was forced to shut down its Signature model after three years of the premium model.
"It sad to hear that this coffee culture symbol has to be closed. Many passions and beliefs about good coffee come from here, told me Vo Duy Phu, Former director of commerce and promotions at The Coffee House.
The company revenues started to decline from 2020 when the brand fell to the third position in the list of the most significant coffee and beverage chains in Vietnam, Ceding its destination for a Phuc Long. acne outbreaks,though there are no specific figures on the revenues of The Coffee House in the past year, It was believed to have total revenues in excess of $32 million, But in the throes of after tax profit losses.
"We shut down inefficiencies to focus our resources on innovations. on any given day, There has to be lot of pain, But over the years, it may grow back, Said a representative of The Coffee House last year.
Phuc Long is the sole bright spot in the top four. The brand has had an impressive alteration, With a profit increase of 119 %, progressing to $1.5 million over 2020.
Phuc Long coffee and beverage chain is cooperating with retail giant Masan Group to develop the aforementioned Phuc Long kiosks through a network of more than 2,200 WinMart+ stores nationalized.