Parent company Masan Group opened 21 standalone Phuc Long Coffee & Tea stores and closed 10 WinMart supermarket concession kiosks during its third quarter, a strategy credited for driving double-digit sales and profit growth
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The exterior of Phuc Long Coffee & Tea’s Sky Garden store in Ho Chi Minh City | Photo credit: Phuc Long Coffee & Tea
Vietnamese retail conglomerate Masan Group has credited new flagship stores and a leaner kiosk business as driving higher sales and profits for its Phuc Long Coffee & Tea business.
Reporting on the three months ending 30 September 2024, Masan Group said the coffee chain’s net revenues grew 13% year-on-year to VND 425bn ($16.7m) – a 9% rise on the previous quarter.
Additionally, Phuc Long Coffee & Tea’s gross profit grew 10% year-on-year to VND 270bn ($10.6m).
Ho Chi Minh City-based Phuc Long Coffee & Tea opened 21 new stores during the quarter but closed 10 underperforming kiosks within Masan Group’s WinMart supermarket network – continuing its strategy to focus on more profitable standalone outlets.
In a press release, Masan Group said like-for-like daily sales of Phuc Long Coffee & Tea stores outside of the WinMart network achieved steady 2% quarter-on-quarter sales growth during the period.
World Coffee Portal’s Project Café East Asia 2024 research found that the total Vietnamese branded coffee shop market exceeded 5,750 outlets last year, with operators adding more than 500 net new stores.
Phuc Long Coffee & Tea is the fifth largest branded coffee chain in the country behind 2,000-store Milano Coffee, Jollibee Food Corp-owned Highlands Coffee, small-format franchise chain Trung Nguyên E-Coffee and Ho Chi Minh City-based Viva Star Coffee.