Masan Group’s Phuc Long Coffee & Tea is pivoting its strategy from focusing on WinMart coffee kiosks to expanding its network of coffee shops in Vietnam’s key urban areas. The firm has unveiled plans to inaugurate between 30 and 60 new outlets in Hanoi and Ho Chi Minh City. This expansion aims to achieve a sales increase of 17% to 41% year-on-year, ranging from VND1.79 trillion to VND2.17 trillion (USD 73.3 million to USD 88.9 million) in 2024.
This strategic shift follows a profitable year. The company reported a 30% surge in earnings before interest, taxes, depreciation, and amortization, reaching VND 255 billion (USD 10.4 million) for the year ending December 31, 2023.
Despite experiencing a 3% decline in net revenues to VND1.53 trillion, largely due to kiosk closures and a dip in foot traffic, Phuc Long Coffee & Tea remains positive about its future growth prospects.
Initially launched in May 2021, the kiosk model aimed at establishing 1,000 units but experienced a significant downturn, accounting for a 75% decrease in WinMart’s third-quarter revenues in 2023.
(Source: Verdict Food Service)
