Café Amazon has ceased operations in Vietnam, confirmed by management. The brand’s exit follows underperformance amid strong competition, with a focus shift towards other Asian markets like Laos and Japan.
Key Points
- Café Amazon Operations Halted: All Café Amazon outlets in Ho Chi Minh City have ceased customer service. The brand’s Vietnam fanpage confirmed the closure, which also involved removing signage and returning leased spaces. The company announced its dissolution of ORC Coffee Passion Group, its Vietnamese operating entity.
- Investment and Market Challenges: Central Plaza Hotel Public Company Ltd (Centel) reported a US$1.72 million investment in the venture but chose to exit Vietnam to refocus its business priorities amidst competitive challenges. The chain faced strong competition from local brands like Highlands Coffee and international players.
- Future Focus and Expansion: Despite Café Amazon’s struggle in Vietnam, it remains a significant player in Asia with over 5,000 locations primarily in Thailand. The chain is shifting its focus to new markets including Laos, the Philippines, Japan, Oman, and Bahrain through franchising.
Café Amazon Closes All Vietnam Stores Amid Business Restructuring
Café Amazon, Thailand’s largest coffee chain, has announced the closure of all its outlets in Vietnam, marking a significant shift in its regional strategy. The closures, which took effect this week, come as part of the company’s attempt to streamline operations and address ongoing financial challenges in the competitive Vietnamese market.
The coffee chain, which boasts over 3,000 locations worldwide, initially expanded into Vietnam in 2018, aiming to capitalize on the country’s burgeoning coffee culture. However, recent reports indicate that the chain struggled to gain traction amid fierce competition from local and international brands. According to a statement from Jaturong Srisuk, CEO of Café Amazon’s parent company, “This decision reflects our commitment to focus resources where they can yield the best results for our brand and customers.”
A total of 30 Café Amazon locations across cities such as Ho Chi Minh City and Hanoi will be shut down, impacting hundreds of employees. Local consumers have expressed disappointment but acknowledged the challenges faced by foreign coffee chains in navigating Vietnam’s dynamic beverage landscape.
Industry analysts suggest that this closure may signal a larger trend of foreign businesses reevaluating their presence in Vietnam, as domestic brands increasingly gain popularity. “Café Amazon’s exit demonstrates just how tough the market can be for international players,” noted Nguyen Thanh, a marketing expert.
As the coffee giant refocuses its efforts on its home market and other potential territories, the closures in Vietnam serve as a reminder of the competitive nature of the global coffee industry.
Sources: Café Amazon Press Release, Industry Reports
Source : Thailand’s largest coffee chain Café Amazon shuts down all Vietnam stores
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