Starbucks commits to expanding in Vietnam with 100th-store plan
|Customers in a Starbucks Reserve Coffee shop in Hanoi. (Photo: VNA)|
Currently, the US coffee chain runs 87 outlets across seven cities and provinces nationwide with 50 in HCM City and 24 in Hanoi and 1,000 employees, including 200 coffee masters.
“So, as you can see, there’s plenty of opportunities to continue growing in the market,” CEO of Starbucks Vietnam, Patricia Marques told reporters in Hanoi on January 6.
According to the CEO, Starbucks will continue to open more stores, in addition to places that the chain has visited to better serve customers in their neighbourhoods.
Most recently, the US chain opened a new store in Ho An on December 9, 2022. It is also targeting new opportunities in Binh Duong and Binh Dinh provinces for this year’s plan.
A recent report of the fast-moving consumer goods (FMCG) in the Asian region announced by Kantar World Panel showed Vietnam’s beverage industry has recovered after two years of being affected by the COVID-19 pandemic. The third quarter of 2022 recorded an average growth rate of 5.2%, only 0.4% lower than the average growth rate of the whole of Asia.
“The beverage sector will bounce back from the lockdown in Vietnam and seems to thrive again after two years of decline,” the Kantar report said.
Despite being a giant in the international markets, Starbucks must compete with rising local brands.
Vietnam’s tea and coffee market is dominated by local franchise brands, including Highlands Coffee (573 stores), The Coffee House (154) and Phuc Long (118), according to Statista data as of December 2022.
According to India-based market research company Mordor Intelligence, increasing busy lifestyle and longer working hours is likely to strengthen the consumption of coffee. Vietnam’s coffee market is projected to witness a compound annual growth rate (CAGR) of 8.07% during 2022-2027.
To increase its competition in the “world coffee capital”, besides continuing expansion, Starbucks Vietnam CEO said the chain will strive to optimise costs by improving management capacity, human resource capacity and operational efficiency at each store.
In addition, to celebrate its 10-year journey in Vietnam, customers in Vietnam will have a chance to enjoy Starbucks Vietnam Da Lat coffee in September 2023.