Coffee giants get disillusioned in Vietnam The globally well-known coffee brands, one after another, came to  The penetration of the US Starbucks to However, things have become quite different. The second shop was poorly patronized on the opening day. The “Starbucks fever” has cooled down quickly. Gloria Jean’s, who came to The stories of big coffee brands Gloria Jean’s Coffee made presence in Highlands Coffee, reporting loss, has been struggling to exist by changing its business plan. The firm now offers more choices in the menu, sells vouchers on groupon websites in order to attract more customers instead of only targeting high income earners. Andrew Nguyen, who brought The Coffee Bean & Tea Leaf brand to Doan Dinh Hoang, a branding expert, who is also the founder of Passio coffee chain, noted that The Coffee Bean & Tea Leaf would bear a hard pressure once Starbucks arrives in Still harboring the dream of gold Trung Nguyen has geared up in its plan to expand its business scale with 60 existing shops and the ambition of having 200 in the next two years. Analysts have commented that Trung Nguyen does not aim to make bigger profits when opening more shops. Trung Nguyen’s cafes are all located on advantageous positions for which it has to pay high rents. Insiders said each of the cafes needs the investment capital of $300,000-500,000. Meanwhile, the shops are located near each other, which makes it less profitable. What does Trung Nguyen aim to when it continues opening more shops though the business is not really satisfactory? Analysts have commented that Trung Nguyen tries to increase its presence in the market. However, this will be very costly. How about Gloria Jean’s Coffee, Highlands Coffee or The Coffee Bean & Tea Leaf? The owners of the brands still keep optimistic about their business, believing that they still have opportunities in the market. Hoang said the Vietnamese market has just started, therefore, there are still many big opportunities to new brands to join the market. Andrew Nguyen agrees, saying that there are hundreds of coffee brands in the He stressed that The Coffee Bean & Tea Leaf still can open 10 cafés a year and that there is no other country in the world where people drink so much coffee like in Source: NCDT |
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