The Ho Chi Minh City-based coffee chain is seeking to appeal to Vietnam’s young entrepreneur base with the re-launch of its flexible store format franchise model.
Trung Nguyen E-Coffee has re-introduced its low-cost franchise model in Vietnam and reinstated a goal to reach 3,000 stores – an ambitious target first outlined five years ago.
Launched by Vietnam’s Trung Nguyen Legend Group in August 2019, Trung Nguyen E-Coffee operates more than 800 franchised stores across 63 provinces in Vietnam, including standalone flagship outlets and small-footprint kiosks in hotels, restaurants, office buildings and transport hubs.
In a press release, Trung Nguyen E-Coffee said it signed more than 200 new contracts since relaunching the franchise model in September 2024. The brand’s ‘zero-dong’ franchise policy includes no sign-up fees and further incentivises potential partners by forgoing management and training fees.
The small-format coffee chain believes low start-up costs and flexible store options – which can be adapted to spaces as small as 40sq ft – will meet ‘the business investment needs and financial capacity’ of Vietnam’s young entrepreneurs.
“We have dedicated time to researching and perfecting the Trung Nguyen E-Coffee model. With the launch of the 2024 version, we continue to offer our zero-dong franchise policy. Our flexible design caters to the business needs of the younger generation,” said Dang Nguyet Yen Thanh, Business Development Director, Trung Nguyen E-Coffee.
Trung Nguyen E-Coffee achieved rapid outlet expansion in its first 12 months of operations, opening more than 350 stores by the end of 2020 to become the second largest branded coffee chain in Vietnam by outlets, behind Milano Coffee.
However, its 3,000-store ambition has proven elusive so far and the coffee chain will need to increase the number of new outlets it is opening each month from 20 to 130 if it is to achieve its goal of reaching the figure by the end of 2025.
In a press release, Trung Nguyen E-Coffee also expressed aspirations to further expand internationally but has yet to outline plans. The small-format coffee chain’s international presence currently comprises single sites in Reykjavík, Iceland, and California, US – both of which opened in 2023.
Trung Nguyen E-Coffee appears to be seeking to emulate the international success of Trung Nguyen Legend Group’s flagship coffee chain, the eponymous Trung Nguyen Legend, which is scaling its presence in China and the US – with plans to also launch in Australia and Canada this month.
Source: World Coffee Portal
