Beverage chain's revenues surge with Hanoi expansion

By Minh Son September 25, 2020 | 04:55 pm PT

Inside a Phuc Long tea and coffee outlet in Hanoi. Photo by VnExpress/Tuan Tu.

Beverage chain Phuc Long saw revenues rise nearly 65 percent over 2018 to VND779 billion ($33.7 million) last year after expanding operations to Hanoi.

After opening the first outlet in Hanoi in 2018, the Ho Chi Minh City-based tea producer increased the number of outlets in the capital to 10 last year out of 70 nationwide.

Hanoi is now its second largest market in the country behind HCMC with 47 outlets.

Its revenue ranked fourth among top coffee and tea chains in Vietnam, with Highlands leading the market at nearly VND2.2 trillion, followed by The Coffee House and Starbucks – the only foreign brand in the top four.

In terms of pre-tax profits, Phuc Long ranked third at VND20 billion behind Highlands Coffee (VND84 billion) and Starbucks (VND52 billion).

Phuc Long, established in 1968, sources its tea from the central highlands province of Lam Dong and the northern province of Thai Nguyen, both famous for the tea they grow.