The New Frontier: Unveiling the Allure of the West for Modern F&B Chains

For years, the Mekong Delta has been perceived as a price-sensitive region with a traditional consumer base. Here, a cup of iced coffee on the sidewalk could cost as little as 10,000 to 15,000 VND. Local consumers value familiarity and a chatty, interactive service style, a stark contrast to the internationally-standardized service style that emphasizes individuality and self-sufficiency.

In reality, many large F&B brands are hesitant to venture into this region due to the challenge of adapting to local preferences. So, when Starbucks decided to expand into the Mekong Delta with two new stores in May, in My Tho and Long Xuyen, it raised a few eyebrows. What drew Starbucks Vietnam to the West?

Nguyen Tran Anh Chi, Director of Communications at Starbucks Vietnam, shared insights into the company’s strategy in the West and how they aim to build long-lasting connections with local consumers, not just through coffee, but also through understanding and a sustainable vision.

Starbucks has been in Vietnam for over a decade, but it’s only recently that you’ve ventured into the Western region. What prompted Starbucks Vietnam to expand aggressively into the Mekong Delta in 2025?

We’ve been diligently studying consumer data and the economic and urban development rates of different areas. We’ve noticed that the Western region, particularly tier-1 and tier-2 cities like My Tho, Long Xuyen, and Can Tho, are undergoing a significant transformation: a young population, rising incomes, and a clear shift towards modern consumption patterns. Based on our economic assessments and business potential, we decided to invest in this market in 2025 and have planned to develop and expand into five provinces in the Mekong Delta.

This journey is carefully planned, not merely about establishing a presence, but about building a sustainable foundation in the Western region. As of now, Starbucks Vietnam has opened two stores in My Tho and Long Xuyen, and we intend to continue our expansion into Can Tho, Rach Gia, and Tan An. In the past year, Starbucks has also opened stores in other locations outside of Ho Chi Minh City and Hanoi, such as Quy Nhon and Thanh Hoa.

Each time we announce a new store in these regions, we receive numerous requests from young people and customers in the Mekong Delta asking when Starbucks will come to their area. The opening of these five stores is our response to those requests, and we aim to bring the Starbucks experience closer to customers in this region.

Many big brands have been hesitant to open stores in provincial markets due to the challenge of adapting to local culture. How is Starbucks Vietnam overcoming these hesitations?

We recognize that a global model may not be entirely suitable for local development, and businesses need to listen and adjust. For instance, alongside our familiar coffee beverages like Latte and Cappuccino, we’ve included drinks that cater to local tastes, such as Vietnamese iced milk coffee, salted coffee, and coconut coffee, priced affordably from 45,000 VND. With the hot summer weather, customers can also enjoy refreshing fruit-infused teas like grapefruit tea, lotus tea, and lemon-strawberry tea.

Our stores will also feature attractive promotions for customers, such as pins, tote bags, and exclusive gifts for those who sign up for our Starbucks Rewards membership.

Our opening activities are deeply rooted in the local culture. For instance, during the opening week, we’ll have a “loto” program, a traditional Southern music performance, and exciting gift-giving events for customers who visit Starbucks. In the past few days, many customers have checked in on social media at our store on Ngo Gia Tu in Long Xuyen, and our banners have been spotted along the main roads in the area.

As you expand into these new Western markets, what strategies is Starbucks Vietnam employing to ensure efficient operations while building sustainable and long-lasting connections with the local community?

With our expansion into the Mekong Delta, we’ve been preparing for months by recruiting and training a team of baristas, ensuring they’re ready for the new stores. The training program covers not just beverage crafting skills but also customer care, communication, shift management, and store operations according to international standards. Through this process, our young team gains a broader perspective on work procedures in a modern store model, elevating service standards in the F&B industry, especially in the local context, as more young people join the Starbucks team.

Additionally, Starbucks views its partners as collaborators in delivering the best experience to each customer, so creating a comfortable work environment where the team can excel is a priority for us.

We aim to provide career opportunities for young locals as we expand in these major cities in the Mekong Delta. Moreover, sustainability is a key focus in our strategy as we enter new territories.

In our stores, we will continue our “Bring Your Mug, Get Discounted Refills” policy, which we’ve implemented for years to encourage customers to bring their mugs and reduce single-use plastic cup usage across our system. With this policy, customers also receive a 10,000 VND discount on their beverage when using their mugs.

Furthermore, by encouraging customers to embrace recycled materials/products through our loyalty programs, we gradually shift consumption habits towards a greener lifestyle, aligning with our net-zero emissions goal for 2050.

For the community, we continuously support and engage in green environmental projects, such as installing Aquatowers, cleaning up consumer waste, and planting trees, which we’ve done in many regions across the country. Starbucks Vietnam is building an image not just as an international coffee brand but as an integral part of the local community, fostering closeness and shared growth.

It’s known that Starbucks Vietnam has a rigorous process for selecting store locations and opening stores. What’s unique about the Western stores?

We undertake a thorough process to open a new store, from meticulously studying factors like population density, purchasing power, consumption habits, and experience preferences to understanding the essential needs of our customers. Regarding our current stores in My Tho and Long Xuyen, they are strategically located in large shopping malls or high-visibility residential areas to ensure easy access for most customers.

Specifically, our Ngo Gia Tu store is located at the intersection of major roads, one of our preferred locations as it ensures high visibility from a distance. The Ngo Gia Tu store also boasts one of the largest serving areas among Starbucks stores in the Vietnamese market.

In terms of space design, we prioritize an open layout with natural lighting and flexible seating to accommodate solo customers, groups of friends, and office workers. Most importantly, the local menu featuring regional favorites like Vietnamese iced milk coffee, salted coffee, and coconut coffee is also available at our Western region stores to cater to local tastes.

What gives Starbucks the confidence to venture into the Western market as part of its long-term strategic map in Vietnam?

We are pursuing a strategy to cover all tier-1 and tier-2 cities in Vietnam, beyond Hanoi and Ho Chi Minh City. The Western region, with its nearly 20 million people and rapidly developing cities like Can Tho, Long Xuyen, My Tho, and Rach Gia, is an essential part of our long-term development strategy.

As a pioneering international F&B brand in the West, we face challenges and opportunities. As mentioned earlier, we’ve meticulously prepared, from offering products that cater to local tastes to providing localized promotions and experiences to create a sense of familiarity for our customers. Therefore, we decided to expand into the Western market, and I believe this is the right time, aligning with our goal to cover all five provinces in the Mekong Delta in 2025.

Starbucks Vietnam’s cautious and flexible approach in the Western region demonstrates that it’s not merely about geographical expansion but about forging a development journey connected to each region. When coffee becomes more than just a beverage, serving as a bridge between global values and local identities, Starbucks Vietnam’s presence in the Mekong Delta promises to enrich the modern, sustainable, and inspiring consumption landscape of this region brimming with potential.