“6 years for a journey, happy and happy, happy or happy. There are dreams, concerns and expectations. Thank you for making the most beautiful part of your youth. Goodbye The Coffee House – The House of Inspiration “, Mr. Nguyen Hai Ninh, Vice Chairman of The Coffee House Board of Directors, wrote on his personal page on February 8.
However, reply to Zing, the founder of this coffee chain did not comment on the information that he will leave The Coffee House.
Mr. Nguyen Hai Ninh opened his mouth to say goodbye to the coffee chain he founded. Photo: Hai An.
6 years to open 175 stores
Established in 2014, The Coffee House coffee chain belongs to Vietnam Tea Trading Service Joint Stock Company. This is one of the startups funded by Seedcom Investment Fund owned by Mr. Dinh Anh Huan, co-founder of The Gioi Di Dong.
The unit that owns and operates the chain The Coffee House, located in Ward 4, District 3, Ho Chi Minh City, has registered its main business as restaurants and mobile food and drink services. The legal representative of the company is Mr. Mai Hoang Phuong.
Mr. Phuong is sitting as CEO at The Coffee House, replacing Mr. Nguyen Hai Ninh in mid-2019. The “captain” was born in 1975 and co-founded Seedcom Company, Viet Tinh Anh, used to hold senior positions such as director CEO of retail companies – Cau Dat Farm, Juno, Gioi Di Dong, Viet Australia international school system.
In 2020, The Coffee House opens 25 more stores. Photo: The Coffee House.
The Coffee House first appeared in August 2014 in Ho Chi Minh City, with the desire to build a popular coffee chain, but with the same experience as international coffee chains. In 2017, the brand exceeded 80 stores nationwide.
In 2018, Nikkei rated The Coffee House as the fastest growing brand when compared to coffee startups in Vietnam. By 2020, this chain will open 25 more stores, increasing the coverage to 175 stores in 18 provinces and cities nationwide.
Notably during the acceleration period, specifically in October 2017, The Coffee House decided to enter the milk tea market by receiving the franchise of Ten Ren milk tea label from Taiwan. This system distributes 3 main products which are traditional tea, available bottled water and milk tea, of which milk tea is the main product.
However, less than 2 years later, Mr. Nguyen Hai Ninh (then still the CEO of The Coffee House) announced that he would close all 23 Ten Ren milk tea shops to focus on the coffee chain The Coffee House. The reason given is that the business model is not suitable with customer needs and the results have not met expectations.
“It seems our business style is not suitable for Vietnamese tastes,” said Vo Duy Phu, Commercial and Marketing Director of The Coffee House, at the time. In a recent interview in 2021, Mr. Vo Duy Phu, co-founder and deputy general manager of Vietnam Coffee Tea, revealed the revenue and reception for Ten Ren from consumers in Ho Chi Minh City. very good.
The second largest man in F&B industry
After many times increasing the scale and raising more capital, The Coffee House has become the second largest coffee chain in Vietnam (after Highlands Coffee). According to the report on business results in 2019, this company recorded revenue of 863 billion VND, an increase of nearly 30%, equivalent to an increase of 195 billion VND compared to 2018.
Impressive business results helped The Coffee House to be in the top 2 F&B brands (food and beverage industry) with the highest revenue in the market. In this list, there are Highlands Coffee (revenue of 2,199 billion VND in 2019), Starbucks (783 billion VND) and Phuc Long (779 billion VND).
The company’s gross profit in 2019 also achieved a 35% growth, reaching over VND 623 billion. However, The Coffee House recorded a loss of more than 80 billion dong.
In 2017 and 2018, this F&B enterprise earned VND 346 billion and VND 669 billion, respectively, gross profit of VND 252 billion and 462 billion, respectively. Despite owning high gross profit margin, after deducting operating and administrative expenses, The Coffee House also recorded a net loss.
Currently, the unit that owns and operates The Coffee House has total assets of VND 391 billion and equity of over 150 billion.
Source: ndh.vn – Translated by fintel.vn