The Coffee House has fallen out of the top five coffee chains in Vietnam, according to a recent ranking by research firm Vietnam Report JSC. The results, released on Tuesday, indicate that familiar names such as Trung Nguyen Legend, Highlands, and Phuc Long have maintained their positions from last year, with Trung Nguyen Legend securing the top spot.
Starbucks holds the fourth position, while the emerging Phe La, a newcomer with just four years in the market, claims the fifth spot. Once a leader in the industry known for its customer loyalty and numerous awards, The Coffee House has recently closed multiple locations, reducing its operational outlets from 115 to 107 as of September 20. The chain has exited major cities like Can Tho and Danang, shuttering nearly 40 locations since late 2023.
Seedcom Group JSC, the parent company of The Coffee House, reported a loss of VND272 billion ($11.58 million) in 2022, bringing its total accumulated losses to VND1.17 trillion ($49.82 million). Despite a 60% year-on-year increase in net revenues to VND1.6 trillion ($68.21 million), driven largely by retail and supermarket segments, the company acknowledged that its financial challenges stemmed from high interest rates, rising rents, and increased costs in raw materials and logistics.