The Coffee House, the master franchise of Taiwan’s famous bubble tea chain Ten Ren, announced the close of 23 its bubble tea outlets in Ho Chi Minh City and Bien Hoa is scheduled to begin on July 15, local media reported.
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According to The Coffee House, the decision was made after a thorough review process on current business model which is deemed unsuitable to customers’ demands.
Following the close of the brand in Vietnam, Ten Ren would revise its current strategy, said The Coffee House.
Making the first presence in Vietnam in November 2017, the introduction of Ten Ren was at a time when Vietnam’s bubble tea market was growing at a rapid rate.
Ten Ren representative said it planned to open 40 outlets by the end of 2018, however, the brand only had 23 at the time of its exit.
Data from Euromonitor showed that Vietnam’s bubble tea market was worth US$282 million in 2016 with a 20% year-on-year growth rate.
In Vietnam, there are currently 50 bubble tea brands with over 2,000 stores nationwide, according to Vietnam Association of Small and Medium Enterprises.
