Caffe Bene announces sub-franchise deals in Vietnam
Caffe Bene announces sub-franchise deals in Vietnam
Caffe Bene, South Korea’s biggest coffee shop chain, has announced six sub-franchise agreements with Vietnamese partners after one year of operation in the country.
Caffe Bene Vina Co. Ltd. said at a media briefing in HCMC last Friday that an additional six coffee shops would be opened in the city.
Apart from two operational coffee shops in the city, the firm itself will inaugurate two more in the coming time. Together with six franchises, the coffee brand is expected to have 10 shops here in the city at the end of this year.
Truong Tuan Anh, deputy director of Caffe Bene Vina, said it cost the company an average US$300,000 to set up a café. A sub-franchisee is required to pay US$100 per square meter for a shop covering at least 150 square meters and an advertising charge equivalent to 6% of total revenue.
The forthcoming shops under the Caffe Bene brand will be up and running in the city’s downtown area such as the area of Ho Con Rua (the fountain of the turtle), Le Duan Boulevard and Pham Ngoc Thach Street.
The Vietnamese market has emerged as an appealing destination for food and beverage companies with multi-culture and modern styles as the country has a young population.
Tuan said 20% of Caffe Bene customers in HCMC are foreigners, 40% tourists and the remainder locals. Vietnamese customers are usually in the age range of 16 and 30 and have stable jobs and good incomes.
Caffe Bene Vina has invested US$5 million and plans to make more investments in the country.
General director Ho Minh Hoang said the firm looks to recover its investment capital after three years.
Caffe Bene has nearly 1,000 coffee shops around the world, with 30% of them set up by the company and 70% via franchise agreements.
