THE COFFEE HOUSE ENTERPRISE

I. General introduction:
The Coffee House bar chain under Vietnam Coffee Service Trading Corporation
was established on August 22, 2014. The company is headquartered in IMC Building No.
62 Tran Quang Khai, Tan Dinh Ward, District 1, Ho Chi Minh City and No. 3 Trung Hoa,
Cau Giay District, Hanoi City.
-  The meaning of the name The Coffee House:
 The house is used to connect the community,
welcome and serve customers when learning
to enjoy the best coffee by the staff of the
Bartender.
- Vision: The Coffee House wants to become the
most admired coffee brand in Vietnam market.
- The Coffee House mission is Deliver Happiness
- bringing happiness. Every product, the campaign
of The Coffee House always revolves around
people, that is customers, employees, community.
- The Coffee House does not do it alone, but
wants people to spread good values to young
Vietnamese and that is why they pursue the
implementation of 6 core values:
 Honesty: Be frank in all communication, listen to what others say, say what you really
want to say, don't compromise.
 Creativity: is an environment that nurtures creativity and tectonics, which focuses on
breakthrough differences.
 Integrity: Appreciate words.
 Brave: Facing challenges, ready at all times with the constant transformation of the
market, continuously applying breakthrough technology.
 Interest: take the needs and expectations of customers as well as employees as a
measure of success.
 We are the source of the problem:
+ I am the source of everything.
+ Interested in supporting teammates.
+ The success of your teammates is your own success.

II. Stages of development

- In 2014:
+ August 2014: opening of the first row at 86-88 Cao Thang Street, Ward 4, District
3, Ho Chi Minh City.
+ Establishment of Vietnam Coffee Tea Trading and Service Company.
- In 2015: There are 16 stores in total.
- In 2016:
+ There are 42 stores in total.
+ Change the company name to: Vietnam Coffee Tea Service Trading Joint Stock
Company.
- In 2017:
 + There are 80 stores in total.
+ Opening a representative office in the North.
- In 2018:
+ There are 100 stores in total.
+ Moving headquarters to IMC building, District 1, Ho Chi Minh City.
- In 2019:
A total of 152 stores in 16 provinces and cities nationwide with nearly 3,000
employees.
 Northern region: Hanoi, Haiphong, Thanh Hoa, Nghe An, Hung Yen District, Bac
Ninh District.
 Central region, Central Highlands: Danang, Hue, Buon Ma Thuot, Nha Trang.
 Western region: Can Tho, TienGiang County.
 Southern Region:Ho Chi Minh City, Bien Hoa, Vung Tau, Binh Duong.
- In 2020:
Despite many difficulties, in 2020 The Coffee House still strives to fulfill the
promise that "Everyone will have a Coffee House near their home".
In the past year, The Coffee House has set foot in two new lands: Phu Quoc and
Tay Ninh - bringing the total number of provinces present to 18.
- In 2021:
Build a new model of stores specializing in take away and delivery in Ho Chi Minh
City, approaching the places of living, working and shopping of customers. The expansion
plan will take place in 2022 across the country.

III. Marketing Strategy of The Coffee House

The Coffee House entered the F&B market in Vietnam quite late, it seemed that this
brand might be swallowed up by other famous coffee brand chains. However, thanks to the
right marketing strategy and understanding of the domestic market in Vietnam, The Coffee
House has taken the right steps to focus on customers, helping this brand quickly become
one of the leading commercial chains in Vietnam. The fastest growing coffee brand on the
market today.
1. Finding “gap in the market” thanks to Customer Insight research of Vietnamese
people:
Realizing the change in the way Vietnamese people enjoy coffee: going to coffee is
not only to enjoy coffee, but also to meet and chat with friends, enjoy the experience of
space, since then, The Coffee House has chosen “quality of service” as its differentiator.
At that time, coffee shops with beautiful spaces such as Starbuck, The Coffee
Bean... often had a high price range, "sitting in coffee" was difficult to become a habit of
Vietnamese people, while the price range from 30,000 to 40,000 was still not done yet.
Seeing such a "gap", The Coffee House was born, combining "optimal experience space"
with "reasonable prices", the Coffee House became a meeting place for friends, a working
space. opening, with service quality being the top focus.
"Going for coffee" is no longer simply an act of loading a person with a black liquid
containing caffeine, it becomes a verb expressing meeting, communicating, sharing
experiences in space and drinking. The development of the internet and social networks
makes young people update and yearn to experience new trends and trends faster than
ever. The success of Starbucks, The Coffee Bean... in the Vietnamese market proves it,
even though the cost of a cup of coffee at these foreign chains is sky-high. Besides drinks,
the combination of space and service style has optimized the customer's experience; add
value to the service. The formula is like that, but what to do to make a difference and
survive, when the market is already filled with big names is the problem that The Coffee
House needs to solve.
2. Consistent brand positioning according to the 5P Marketing strategy:
Service quality at The Coffee House is demonstrated through optimizing customer
experience, taking customers as the center, from macro to micro, which is reflected in the
5P strategy.
– People & Physical Evidence:
The space of the Coffee House is designed to create the feeling of “home” as much
as possible: yellow-toned lights increase the cozy feeling, high-rise architecture combines
the use of many glass and windows, creating open and airy space, tables and chairs are
arranged in each area, there is both a long table in the style of "Co-working space" - an
open working space, and a round table for friends to meet... Especially, The "minorities"
such as designing the outlet in the store for convenience, turning on the music so smoothly,
the friendly staff... are also taken care of by The Coffee House to bring the best experience
to customers.
– Promotion:
The content of the Coffee House always takes the customer's story as the center,
instead of focusing on the product, not all of it revolves around: peach orange lemongrass
tea, milk coffee, ... but besides Those are the first recorded thoughts. “Home” is not a place
to come and go, “Home” is a place where you are heard and shared. “Home” is also a
place to capture the emotions of you and your loved ones. Therefore, the images and posts
of the sharing and confiding columns, "Humans of The Coffee House" are very interested
in the investment brand. All activities in The Coffee House's Marketing communication
strategy are closely aligned with the "Home" positioning and insight from its target
audience.
– Price:
The Coffee House's pricing strategy is devised when putting yourself in the role of a
customer and asking the question: How much does an experience at a coffee shop like this
cost, and how much money does a customer spend? Reasonable? Is the cost commensurate
with what they are entitled to? Can they afford to go to that cafe often?…
From there, The Coffee House aimed at a price of 30,000 - 40,000 VND/person at that
time, which was a reasonable cost, enough to entice customers to sit regularly.
– Product:
Going to coffee but not necessarily just drinking coffee.
F&B is a very competitive industry due to its wide range of substitute products.
Therefore, it is quite common for stores to continuously improve their menus. The Coffee
House is no exception. In addition to the popular coffee, the brand also develops many
other products, such as milk tea, ice-blended... most recently, the launch of a series of
Macchiato products, which are very popular with young people. This has brought many
alternative options for customers, when coming to The Coffee House, making a big
contribution to retaining consumers.
The Coffee House starts from ordinary paper cups with plastic lids, common for all
products. Next, is a cup with a heat-insulating pad, combined with a special plastic lid for
hot products. The most recent image is a large plastic cup with a heart lid, suitable for
customers using the Macchiato line.
– Place:
 Not only making an impression through its dense presence in big cities, the brand
also earns points thanks to choosing a location that is very suitable for the target market.
The Coffee House's stores are always located in easy-to-find, easy-to-park locations, in
front of the center of districts, where have an eye-catching street view. Moreover, the
brand provides free WIFI in all its stores, encouraging customers to stay for longer periods
after their purchases, and satisfying buyer preferences for continued connectivity.
Another factor is the The Coffee House mobile app.
TCH's mobile application integrates features such as push notification, member
accumulation, ordering and delivery, store locations, coupons, etc. to help TCH reach users
quickly, saving, stimulating customer navigation to continue using TCH's services
(through promotions sent to customers via push notifications or rewards program, ...). This
is also the way of Branding for the company, when the application is downloaded and
located in the user's mobile phone, it will "accidentally" save its brand in the user's mind.
3. SWOT model
*Strengths:
Although it is a young brand with only 7 years of establishment, until now The
Coffee House is one of the brands with the largest coffee market share. In 2020, despite
being affected by the COVID-19 pandemic, this coffee chain continues to maintain its
position and bring in the third largest revenue after Highlands and Phuc Long.
With the policy of "Customer-centric", The Coffee House has established the image
of a polite and friendly brand like the direction of many leading global brands today. This
not only retains customers, but this coffee chain also retains the loyalty and dedication of
its staff.
The location of The Coffee House's store system is also worth mentioning, as most
of the brand's stores are also located in the best location, usually in a commercial center, or
in a prime location. With this advantage, this brand can attract and reach a large number of
customers.
*Weaknesses:
Despite having huge revenue and being in the top 3 largest coffee brands in
Vietnam, in terms of profit, it can be said that The Coffee House is one of the coffee
chains with the heaviest losses. Particularly in the top 5 coffee brands with the largest
revenue in 2020, The Coffee House is the second most losing brand after Trung Nguyen
Franchising.
The store system is mostly concentrated in the city center, so it has not been able to
reach customers in more remote areas. In addition, accelerating store chain expansion
through franchising also makes it difficult for brands to manage and control each store, as
well as train employees.
*Opportunities:
The market potential in Vietnam is huge, it is estimated that the Vietnamese coffee
market is worth about 1 billion USD. At the same time, with the development of society,
Vietnamese people also have the pleasure of sitting in a coffee shop to enjoy. So, if you
know how to seize it, this is a good opportunity to help the brand grow.
Culture or customs are values that are ingrained in the subconscious of local people.
Therefore, this is also a decisive factor for the survival of the business. Understanding the
local culture will help businesses consider making product or communication strategies
that are suitable for local tastes or customs.
 As a domestic brand, The Coffee House has the advantage of understanding local
culture over foreign brands. Thanks to that, they can come up with products that are
suitable for their market.
With the right business philosophy: "Starting from the customer and doing
everything based on the customer's thinking", the deep understanding of Customer Insight
and the good application of the 5P strategy have helped The Coffee House to progress
more and more, closer to the Top-of-mind destination of the Coffee brand in the hearts of
consumers. Along with the development of the Coffee chain, Startup brands in the
Vietnamese F&B market are also gradually transforming with "putting customers first" by
improving service quality and differentiating products for customers.
*Threats:
Because of the growing coffee market in Vietnam, The Coffee House has since also
faced high competition from not only domestic but also foreign brands, such as Starbucks,
Trung Nguyen, Highlands, …

IV. Success of The Coffee House

The chain is so successful that in September 2020, Facebook For Business
introduced to retail and F&B businesses the arrival of The Coffee House in Southeast Asia
through a short video. This event as an affirmation of the success of The Coffee House
(TCH) has not stopped at the national scale but has reached out to foreign markets.
Thus, with just over 7 years of establishment, The Coffee House coffee chain has made a
name in the F&B market, becoming a brand that is considered a successful example in the
competition between cafes thanks to business model selection and technology application
in management.

*The rapid growth of The Coffee House:

In August 2014, The Coffee House coffee chain officially opened with the first
store at 86-88 Cao Thang. Up to now, the chain has been present stretching from North to
South.
In less than 4 years, The Coffee House has opened 100 stores across the country.
This is an extremely impressive number that surely any brand wants to achieve.
At the beginning of 2019, The Coffee House has served 26 million customers,
surpassing many foreign brands in Vietnam, becoming the pride of Vietnamese businesses.
After the first 5-year period, The Coffee House's revenue is about VND 670 billion from
100 stores.
 With the number of 180 coffee shops and more than 2500 employees is an advantage
will continue to increase this year, it can be seen that The Coffee House is constantly
developing and reaching out to the world.

V. Inspire of The Coffee House enterprise

1. Starting a business of The Coffee House from 7 rooms of father’s land
Talking about the early days of starting a business, CEO 8X-Ninh remembers, like
many other young people, thought about making money. “23 years old, I am more
innocent than you guys sitting below” .
“When I was 26 years old, I had a little bit of success, then I realized that making
money is not going to create motivation. I ask myself: What will I spend my life for, so
that life has meaning? said CEO of The Coffee House. Once, he asked his father: Dad,
now that I give up everything to start over, how do you feel? My father said: In his life, he
has 2 pieces of land, 1 piece he is living in and a piece with 7 rooms. Each month 1 room
for rent is 1.5 million. 7 rooms are more than 10 million. I gave you that houses, 10
million, I think you have enough in this city. At the age of 27, I have already done a few
things, the most important thing is my life later, there is nothing to regret," Ninh recalled.
And then The Coffee House was born. It was 2014.

2.If you do it alone, even 10 Ninh can't do it!

When the moderator mentioned the difficulty of operating the current chain of
nearly 200 stores, Mr. Nguyen Hai Ninh (founder of The Coffee House) said that each
stage will have different difficulties. When one opens one store, the obstacle is different
than 100 stores.
"When you open a shop, you do everything. I can tell everyone that I came from the
black mud. I studied in the opposite direction, didn't know anything about coffee, didn't
know anything about restaurants." Ninh said.
Nguyen Hai Ninh studied in the opposite direction, initially did not know anything
about cafes and restaurants.
And the obstacle of opening the first store is how to make coffee, how to know how
to choose a store, how to build it?
"I can only be at the store for 10-12 hours a day, how can I not be at the store for
the rest of the hours but still know how things are going, how to remember the customer's
name. That's the whole problem. topic", 8X CEO said. And that's how hard it is to open a
store.
"This year, The Coffee House has opened 80 stores. Each store, if you want to open,
must refer to 5 locations. That's a total of 400 places to visit in a year. And that I can't do.
10 Ninh can't do it either," said the CEO of the coffee chain.

3.How can 1000 people have the same enthusiasm?

“When you work at a store, instead of you work 8 hours a day, you work 10 hours,
12 hours a day, even 16 hours a day at the store, but when you open 100 stores you can't
do it alone. You have to think how many customers out there will have the opportunity to
talk to the CEO of the company - you can count on the fingers of one hand. Or who will be
the person that every day serves customers. The first person that customers know about it
is not the general manager, but the employee - he serves the store all day," added Ninh.
The first person a customer comes into contact with is the salesperson, not the CEO.
So how to pass the message down to employees.
“So when you open 100 stores, you have to make sure that thousands of people are
working in your company, your organization must understand what the organizational
values you want to pursue are. How do you make sure thousands of people every day wake
up with the same motivations as you do. What made you start this company, why did you
start this industry, you have to make sure to pass on these things to 1,000 people here?”,
continued CEO 8X.
Nguyen Hai Ninh came to the conclusion that each difficulty will have a different
problem. But if there is no difficulty, there is no success, the best way is to find a suitable
solution.