Vietnam’s largest coffee chain Highlands Coffee posts $41M in profit

The chain contributed 36% of the EBITDA from coffee and tea of its parent company Jollibee Foods Corporation. EBITDA stands for earnings before interest, taxes, depreciation, and amortization.

An average store posted VND16 million in revenue per day.

Same-store sales, however, declined by 3.7% year-on-year. The figure measured stores’ sales that had been operating for at least 15 months.

Highlands Coffee, by the end of last year, operated 850 outlets in Vietnam and other countries.

The brand was established in 1999, starting with sales of packaged coffee products in Hanoi. In 2002, Highlands Coffee expanded into the coffee chain model with its first store in Ho Chi Minh City.

In 2012, Highlands Coffee was acquired by Jollibee Foods Corporation, a Philippines-based restaurant conglomerate.

At the end of 2016, JFC and its partner, Vietnam Thai International Company, planned to list Highlands Coffee on the Vietnamese stock market. However, this intention has yet to materialize.

Highlands Coffee has thrived by focusing on widespread coverage. Their strategy revolves around offering a streamlined menu while expanding into office buildings, apartment complexes, street-front locations, and shopping centers.

Vietnam’s beverage store revenue last year was estimated at VND118.26 trillion, a 13% increase from the previous year, according to a report by iPOS, which provides digital management solutions to over 100,000 businesses.

This marked the highest revenue and the fastest growth rate since 2018.