Gloria Jean’s Coffees is not the only foreign cafe whose business has failed in Viet Nam. Some foreign coffee chains serve normal customers in their native countries but only affluent ones in Viet Nam. The attractiveness of foreign coffee products is also affected by their localisation: some beverages are made under foreign formulas but with domestic materials, meaning they do not seem “authentic” and put off foreign customers in Viet Nam. The increasingly fiercer competition is another important factor contributing to the foreign coffee chains’ failure. Market observers pointed to the increasing dominance of affordable local coffee chains like Passio Coffee, The Coffee House, Phuc Long, Highlands Coffee, Urban Station, and Trung Nguyen.

Source: VietNamNet News May 22, 2017 03:56 UTC