The Vietnamese coffee chain has achieved 53% revenue growth in the first nine months of the year, generating for 37% of retail group Seedcom’s 2022 sales to-date
The Coffee House currently operates more than 150 outlets across Vietnam | Photo credit: Seedcom
Vietnamese retail group Seedcom has announced revenues of VND 1.5trn ($60.5m) in the nine months ended 30 September 2022, driven by the performance of The Coffee House.
The Coffee House achieved year-on-year sales growth of 53% to reach VND 564bn ($22.7m), representing 37% of Seedcom’s total sales in the period.
The coffee chain currently operates more than 150 outlets across Vietnam. Seedcom said the business is its leading brand, generating average daily sales of more than VND 2bn ($80,000).
The Coffee House has recently invested in improving its online retail channel, with the company’s app accounting for approximately 35% of revenue.
Headquartered in Ho Chi Minh City, Seedcom also operates the Juno fashion brand, supermarket chain King Food Mart and the Haravan technology platform.
The company posted undisclosed losses in the first nine months of 2022 but CEO Nguyen Hoanh Tien said all Seedcom brands are forecast to achieve much improved financial results in the last months of this year.
Vietnamese coffee chains have gained ground over the last 12 months. In August 2022, Vietnamese retail conglomerate Masan Group increased its stake in Phuc Long Coffee & Tea to 84% in a deal that valued the coffee chain at $453m. Masan has also opened Phuc Long kiosks within its WIN retail store network in Vietnam.
Meanwhile, Ho Chi Minh City-based Trung Nguyen, which operates around 80 coffee shops in Vietnam, opened its first international location in China, a flagship store in Shanghai, in September 2022.
Highlands Coffee has also seen success, opening net 37 stores to reach more than 570 outlets in Vietnam during the third quarter of 2022.
World Coffee Portal forecasts the Vietnamese branded coffee shop market will exceed 5,200 outlets by 2025.