Vietnam hasn’t quite embraced Western chain food and beverage outlets in the same way these have been welcomed in Thailand or Malaysia. However, the world’s biggest name in coffee continues to grow with Starbucks announcing plans to open its 100th store in Vietnam this year.
It is an important milestone for the US-based brand which has had plenty of successes in Asia. Starbucks has opened 10,000 stores across the region and now serves 17 markets. In Vietnam, the company currently operates 87 outlets in seven areas with more than half of these located in Ho Chi Minh City.
However, continued expansion will see Starbucks reach the 100-store tally before July and is in line with the coffee outfit’s plans to operate 12,000 Asian locations by the end of 2025. Vietnam’s main cities are set to host the bulk of new shops, but it is exploring opportunities in Binh Duong and Quy Nhon provinces.
While Starbucks will open a 100th store in Vietnam this year, it is only the fourth largest java operator. Local players dominated the market with Highlands Coffee boasting 592 shops and The Coffee House having 154 outlets.
According to the Allegra World Coffee Portal, Vietnam could have as many as 5,200 coffee chain stores by 2025 with new companies, such as Katinat, Phe La and Cheese Coffee, most likely to lead growth over the next few years.
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Interesting Analysis
When compared to Indonesia (500+ stores) and Malaysia (400+ stores), Vietnam is a relatively small market for Starbucks. Some may dismiss this as a rejection of a Western brand, but that isn’t really the issue here.
Unlike other countries in Asia, Vietnam already had an established coffee culture the Seattle-based brand needs to overcome. Starbucks weren’t going in only needing to chase off copycats and low-quality espresso vendors. It is in an uphill battle to disrupt a way of life. They have had some success in getting people to switch from phin filter Robusta brews to Arabica bean drinks, although it remains to be seen just how much further they’ll be able to grow.
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