How is Phuc Lengthy chain doing enterprise to confidently open a retailer within the US, attracting lengthy traces of consumers on the primary day of opening?

Photograph: Thuy Ngoc Do, Chucksresservethrift.

2 months in the past, on June 21, 2021, Phuc Lengthy tea and occasional chain introduced on its official fanpage that it will open its first retailer within the US in July. Accordingly, Phuc Lengthy USA retailer is positioned in Backyard Grove, California, USA. This F&B chain additionally launched a clip revealing photos of conventional Vietnamese design with purple brick courtyards, tiled roofs, and depicting the picture of tea hills on the partitions – the place the primary components for drinks are created right here. .

However in reality, it was not till August 20, that Phuc Lengthy USA retailer formally opened. In response to the Regulation newspaper and readers, on the opening day of the shop, it attracted numerous younger Vietnamese within the US to check-in and revel in.

Photograph: Do ​​Ngoc Thuy (Afamily.vn)

Vietnam has an increasing number of manufacturers reaching out to the worldwide market and initially attaining sure success, comparable to Trung Nguyen, Cong Ca, Highlands Espresso or King Espresso… Clearly, Phuc Lengthy’s look within the US is contributing an especially constructive observe document to the Vietnamese espresso trade normally and the espresso retail chain model specifically.

Phuc Lengthy appeared in 1957 with the only goal of promoting and introducing tea and occasional merchandise. Since 2012, this model has modified its method to prospects and began selling the model with its personal model id in addition to selecting prime areas within the metropolis. Ho Chi Minh.

In 2019, Phuc Lengthy began to broaden to Hanoi and obtained an excellent reception from shoppers. At present, this F&B chain has about 80 shops, most of that are in Ho Chi Minh Metropolis.

Phuc Lengthy’s menu will be divided into 2 predominant teams, together with tea and occasional, moreover candy/savoury dishes for snacks. Specifically, tea is a typical product line and creates a model for Phuc Lengthy because of its personal tea supply in Bao Loc (Lam Dong) and Thai Nguyen, with a stronger style than milk tea of ​​different manufacturers.

Up to now 5 years, Phuc Lengthy has recorded steady development. In 2019, the chain recorded a income of about VND 779 billion, a rise of 65% in comparison with 2018 and practically three occasions larger than the results of 2016. This helps Phuc Lengthy grow to be the chief in income, outperforming different opponents. different opponents within the milk tea trade comparable to Tocotoco, Gong Cha, Koi Cafe, Bobapop or Dingtea, Sharetea.

How is Phuc Long chain doing business to confidently open a store in the US, attracting long lines of customers on the first day of opening?  - Photo 2.
How is Phuc Long chain doing business to confidently open a store in the US, attracting long lines of customers on the first day of opening?  - Photo 3.

Nonetheless, if positioned subsequent to the “huge” espresso like Highlands Espresso, The Espresso Home or Starbucks, Phuc Lengthy continues to be fairly modest. Highlands Espresso ranks No. 1 within the trade with a income of about VND 1,628 billion in 2018 and VND 2,200 billion in 2019.

By way of revenue margin, whereas different chains like Highlands Espresso obtain a gross margin of about 68%, The Espresso Home about 70%, Phuc Lengthy is barely about 35%, barely higher than Starbucks (19%).

Supply: CafeF/Younger intellectuals

In response to the Funding Bridge newspaper, the overall consumption of tea and occasional in Vietnam is estimated at about 2.three billion USD, anticipated to develop by greater than 10% per 12 months. Wherein, branded tea and occasional retail chains account for less than about 25%.

In response to CBRE Vietnam’s statistics for the fourth quarter of 2020, the variety of espresso chains nonetheless has a development fee of greater than 10% in 2020. The espresso chain can be the one trade within the F&B sector with constructive development within the interval 2019-2020.

Not desirous to miss the expansion alternative, moreover increasing the model overseas, Phuc Lengthy began to cooperate with main companions to broaden the community. Essentially the most important is the handshake with retail big Masan.

In Might, Masan confirmed that The Sherpa, a member of Masan, spent 15 million USD to purchase again 20% of Phuc Lengthy Heritage, which owns Phuc Lengthy. Masan’s consultant stated that the 2 sides will collectively develop the “Phuc Lengthy Kiosk” mannequin via a community of greater than 2,200 VinMart+ shops nationwide.

Truong Cong Thang, Common Director of VinCommerce, additionally stated: “This cooperation will carry Phuc Lengthy tea and occasional retail chain model to the world”, opening a bigger export channel. for this espresso chain. In response to the plan, Phuc Lengthy Kiosk will share 20% of income with VinMart+. Based mostly on the enterprise outcomes of the pilot mannequin, the cooperation is more likely to improve the revenue margin for the VinMart+ retailer system by greater than 4% in comparison with the present stage.

By paying a valuation of 50 occasions for a 20% stake in Phuc Lengthy tea and occasional chain, Masan has added one other strategic piece to Level of Life – a retail mannequin that integrates an internet platform.

(Artificial)

Meadow

By Enterprise and Advertising