The Next Big Thing in Beverages: A New Chain Taking the Market by Storm with 20-30 New Outlets Monthly, All at a Flat Rate of 20,000 VND.

In 2024, Vietnam’s food scene is buzzing with exciting new trends, and the country is witnessing the rapid expansion of affordable Chinese bubble tea and ice cream chains. A new drink craze is taking Hanoi by storm: the “Divine Pear Drink.”

The first Divine Pear Drink store opened on Quan Thanh Street in Ba Dinh, Hanoi, in early April. There are now 31 outlets in Hanoi and one in Ho Chi Minh City. The menu is simple, featuring only six items, all centered around sweet pear drinks, priced at a very reasonable 20,000 VND each. Toppings such as jelly, chia seeds, popping boba, and candied pear are available for an additional 5,000 VND.

Divine Pear Drink is clearly targeting the budget-conscious consumer, particularly students and younger customers. The branding and store design are eye-catching and summery, featuring a refreshing green color scheme.

Social media platforms like Facebook and TikTok are abuzz with people checking in and sharing their thoughts on this new drink. While many reviews are positive, some comment that the drinks have a strong artificial flavor and lack the natural taste of fresh fruit.

Divine Pear Drink is a local brand, owned by Pika Le Vietnam Investment Co., Ltd., based on Quan Thanh Street in Ba Dinh. This is also where the very first Divine Pear Drink store opened. The legal representative of the company is Mr. Nguyen Hoang Quan, born in 1993.

The brand has announced that all Divine Pear Drink outlets are franchisee-friendly, with a zero-dollar franchise fee, aiming to spread this Vietnamese brand across the country.

Notably, franchising has become a popular growth strategy for many drink chains, especially Chinese brands entering the Vietnamese market, such as Mixue, Cooler City, and Cotti Coffee. This business model offers the advantage of rapid expansion and provides an attractive investment opportunity for aspiring business owners.

These franchises generate revenue primarily through franchise fees, management fees, equipment sales, and ingredient supplies. Instead of prime locations, brands like Mixue focus on densely populated streets and smaller towns and cities, keeping rental costs low.

Through franchising, Mixue has rapidly expanded to over 1,000 stores, becoming the leading drink chain in Vietnam by number of outlets. However, the aggressive franchising strategy has led to an overly dense distribution of stores, with some streets hosting two or three outlets of the same brand. This has resulted in intra-brand competition and dissatisfaction among investors.

The frequent discounts and promotions offered by these brands are a double-edged sword, as they can erode store profits and have sparked backlash from franchisees. This raises questions about the long-term sustainability and profitability of such franchises, presenting a challenge for new entrants like Divine Pear Drink.