Beverage chain The Coffee House closes all Da Nang, Can Tho stores

The chain last month shut down all stores in Can Tho, a major city in the Mekong Delta, and will close the remaining three stores in Da Nang in the central region by the end of this month.

It has also been closing many key locations in Hanoi and Ho Chi Minh City and other localities.

The Coffee House now operates 117 outlets nationwide, down by around 30 from the end of last year.

CEO Ngo Nguyen Kha told VnExpress that the chain has been closing stores as part of a change in business strategy.

Under the current circumstances, the company is working to reduce costs and increase performance, he said.

"This decision is aimed at adapting to changing conditions and ensuring business stability throughout the entire system."

The chain has informed its customers at locations that are about to be closed. It has given them promotions and instructions on how to exchange their reward points for benefits.

During the Covid-19 pandemic, The Coffee House also closed many stores, including its Signature outlets which were designed for coffee lovers.

From October 2021 to the end of 2022 it opened only 12 new stores.

Kha said at the time that the company was taking slower steps in expanding because its customers had changed.

With the latest store closures, The Coffee House seems to be going against the trend post-pandemic.

Last year the number of beverage stores in Vietnam rose 1.26% to 317,299, which means 3,950 new stores were added to the chains.

Highlands Coffee has now added 200 stores to its network compared to 2022-end. Phuc Long, Trung Nguyen Legend and new player Katinat have also been expanding.

The Coffee Houses, however, is focusing on meeting a large number of online customers. Around half of its daily orders come from its own app, which has been downloaded 1.8 million times.

Developing its own app has been a strategic goal since the inception of The Coffee House. The chain's leadership believes this helps avoid high fees of 20-25% from intermediary platforms and maintain control over customer data.