The Coffee House, the owner of Ten Ren’s Tea franchise in Vietnam, has cited “business results are not as expected” and “business model is deemed inappropriate to meet customer demand in the country” as reasons for the close down.
The Coffee House made the announcement just days after its founding partner Mai Hoang Phuong has replaced Nguyen Hai Ninh as CEO.
Ten Ren’s Tea opened its first store in Ho Chi Minh City in late 2017. It now has 23 stores in Ho Chi Minh City and the city of Bien Hoa in Dong Nai province, according to its website.
In 2018, the brand invested over VND100 billion ($4.3 million) for store expansion and market research on different business models. It desired to open 40 outlets by the end of the year but the plan fell apart.
Founded in 1953, Ten Ren’s Tea has emerged as an international retailer and manufacturer of specialty teas with over 2,000 retail locations in North America, Asia and the Pacific Rim.
The Vietnamese milk (bubble) tea market has witnessed a boom in recent years, thanks to the younger population with a growing appetite for the blend of tea, milk and pearls. Many domestic and foreign franchised brands have been launched in major cities to compete for a slice of the lucrative market.