The King of Cardamom: K Coffee’s 50 Outlets Brews Up a Storm, Surpassing Veterans Like ‘Ong Bau’, ‘Cong Ca Phe’, and ‘GUTA Cafe’

In a recent event in Ho Chi Minh City, Mr. Phan Minh Thong, Chairman of Phuc Sinh, often referred to as the “King of Pepper,” shared that after a brand revamp and a shift in color identity from green to pink across all outlets, K Coffee achieved a 10% growth rate per store. In the first six months, the chain brought in VND 100 billion in revenue from a total of 50 stores. This equates to an estimated revenue of VND 286 million per month for each K Coffee store.

This figure is notable for a new brand like K Coffee and even surpasses older coffee chains such as Ong Bau, Cong Ca Phe, and GUTA Cafe.

For instance, according to Vietdata, the Ong Bau chain, with 173 stores nationwide, generated only VND 50 billion in revenue in 2023, averaging VND 24 million per month per store. Despite its 17-year presence and 64 stores across Vietnam, Cong Ca Phe’s revenue stands at just VND 15 billion.

GUTA Cafe, established in 2011, has developed over 100 selling points in Ho Chi Minh City. Their estimated revenue for 2023 is over VND 35 billion.

Phuc Sinh, which has been exporting tea, coffee, and pepper overseas for many years, returned to the domestic market in 2016. Initially, the company sold coffee to its partners, but now they have started selling to the mass market through supermarkets and their K Coffee chain.

Mr. Thong shared his perspective on the current Vietnamese coffee chain market, stating that there is still significant potential, despite some players incurring losses. While new entrants bring excitement and quality products, he believes they are not aligning with global trends.

According to the Chairman, these new coffee chains lack a connection to farming and focus solely on product innovation. In contrast, Phuc Sinh’s K Coffee sources its coffee beans from its own farms (accounting for about 5% of their output). Backed by raw material support and capital from its parent company and partners, Phuc Sinh FMCG aims to become the number one player in the high-quality product segment within three to five years.

Mr. Thong also shared that K Coffee is currently operating at a loss due to ongoing expansion investments.

Since the beginning of 2024, K Coffee has been implementing a “pink takeover” of its coffee shops in Ho Chi Minh City, shifting from its previous dominant color of navy blue. This move signals a new direction for the brand, targeting the younger Gen Z demographic.

In a statement made late last year, Mr. Thong revealed plans to collaborate with a foreign partner to expand the K Coffee chain to 100 stores, a significant increase from its current count.