After ten years in Vietnam, Starbucks expects to open its 100th location there in the second quarter of 2023 and continue to expand in the foreseeable future.
The US chain presently operates 87 locations across seven cities in Vietnam, 50 of which are in Ho Chi Minh City. However, compared to major local chains like Highlands Coffee with 592 outlets, and The Coffee House with 154 outlets, its number of stores is modest.
It is one of the few foreign competitors that are still active in the challenging Vietnamese market. According to Statista, as of December 2022, local franchise brands like Highlands Coffee, The Coffee House, and Phuc Long dominate the tea and coffee market in Vietnam. There are also some fresh brands in the mix, such as Katinat, Phe La, and Cheese Coffee. Based on the UK’s Allegra World Coffee Portal, there will be 5,200 coffee chain locations in Vietnam by 2025, which will result in fierce rivalry for chains looking to grow.
Vietnam General Manager of Starbucks stated that the company sees new opportunities in locations such as Binh Duong and Quy Nhon province. He also noted that whereas in Thailand, real estate developers frequently seek collaborations with prominent companies before building malls, this is not the case in Vietnam, so finding a suitable location can be a challenge.
In the fiscal year 2022, Starbucks reported record global sales of USD 32.3 billion, an 11% increase. In 2023, it expects growth of 10-12%.