Vietnamese beverage chain The Coffee House loses top 5 ranking

The Coffee House has fallen out of top five ranking for the most popular coffee chains in Vietnam, while other familiar names remain unchanged from last year, according to research firm Vietnam Report JSC.

This information for the food and beverage industry is contained in the ranking results released by Vietnam Report on Tuesday.

The Coffee House has been a leader in the industry, winning the loyalty of many customers and featuring at the top in various prestigious awards and rankings.

In the latest ranking, Trung Nguyen Legend has held on to the No. 1 position that it occupied last year and Highlands maintains its spot at No. 2 and Phuc Long is ranked third.

The fourth position goes to the American coffee chain Starbucks. The surprising new entrant at the fifth position is Phe La, which has only been in the market for four years.

The Coffee House, one of the largest coffee chains in Vietnam in terms of both scale and revenue, has recently closed many outlets.

As of September 20, the chain operated 107 stores, down from 115 a month earlier. Since the end of 2023, the chain has shuttered stores at nearly 40 locations and has no outlet left in major cities like Can Tho in the Mekong Delta and Danang in the central region.

Seedcom Group JSC, owner of The Coffee House chain, reported a loss of VND272 billion ($11.58 million) in 2022, raising its accumulated losses to VND1.17 trillion ($49.82 million).

The company recorded net revenues of VND1.6 trillion ($68.21 million) in 2022, up 60% year-on-year, led by retail, fashion and supermarket segment.

Seedcom had said then that with the expansion of retail stores in 2022, the losses recorded in its consolidated financial statement were inevitable. At the same time, negative macro market movements, especially factors like high interest rates; rising rentals; and increased raw material and logistics costs strongly affected profit margins.