Recently, the Highlands Coffee coffee chain has announced the adjustment of product prices. In which, in order to maintain and even improve the quality of products, services and experience in the face of the current market volatility, Highlands Coffee decided to adjust the selling prices of the products.
It is known that the new price applies in Ho Chi Minh City and Hanoi from June 27, 2022. And from July 1, 2022, all Highlands Coffee stores nationwide, including ordering apps, will apply the new prices.
As a popular brand with Vietnamese coffee connoisseurs, the price increase of Highlands in the face of price fluctuations attracts a lot of attention. It seems that inflation, expressed as an increase in prices, has come to the daily cup of coffee amid rising prices one by one.
We have had a round of exchanges with popular brands in this regard.
“Inputs including coffee increased by 25%, premises increased by 10-20%, and the prices of cups, bags, and straws also increased by 10-20%…”
In which, in the same segment as office workers, good coffee for a group of young people, students gather to study in groups, CEO of Laha Café chain, Mr. Hoang Viet said: “The reason for the increase in prices of beverage chains today. Because the costs of space, raw materials and labor are increasing very quickly, some raw materials increase by 20-30%. Therefore, if the price is not increased, it is difficult for the shops to maintain.”
According to him, inputs including coffee increased by 25%, premises increased by 10-20%, and types such as cups, bags, and straws also increased in price by 10-20%. The current salary of employees will also increase because of inflation.
Particularly for Laha, the Company’s upcoming strategy is to research new products with reasonable costs and better profit margins, limiting products with raw materials that increase in price too quickly. In terms of premises, Laha is also looking for premises farther from the center to reduce rents.
“In this situation, we are also considering raising the prices of some products to offset costs. If not, it will be difficult to maintain. In the coming time, we believe that there will be many opportunities when consumers Using high and mid-range products will limit spending due to inflation and switch to more reasonably priced beverage chains, chains like laha with good quality and reasonable prices will be the optimal choice. focusing on the take-out segment, so the cost of premises is cheaper and less investment, more reasonable prices will help customers save more costs.
Regarding the challenge, if inflation increases too quickly, it will lead to continuously increasing costs, which is difficult to manage costs and business efficiency may decrease, profits will be affected. In the case of prolonged inflation, the business problem will have to change a lot, it will be difficult for businesses to change in time, which can be risky for businesses, “said Mr. Viet.
CEO of Laha Café chain, Mr. Hoang Viet: “In this situation, we are also considering increasing the price of some products to offset costs”.
F&B Chuk Coffee & Tea in the next few months commits not to increase product prices even though market prices have indeed changed a lot.
Having just launched the popular Chuk Chuk chain and quickly gained the trust of teenagers, Mr. Tran Le Nguyen – General Director of KIDO Group – said: “The current market has witnessed many changes. As for KIDO Group, at the moment we do not have any price adjustment for Chuk Coffee & Tea chain.
Firstly, because KIDO is the market leader with a market share of 44.5%. We have an ice cream factory with the most modern production lines and equipment in the market. We have a factory and have a large quantity of sugar that can be applied in the production of Chuk Coffee & Tea products. In addition, products from Chuk Coffee & Tea mostly use domestic agricultural products and fruits, so there is no price fluctuation.
Integrating the two main reasons above makes KIDO’s production and supply sources not affected. Therefore, we have decided not to increase the selling price at this time.”
Talking about business strategy in the current context, this person said that KIDO currently owns a wide distribution channel system with 450,000 selling points of cold goods, 120,000 selling points of dry goods and logistics system … thanks to the Logistics system With such availability, we are always ready for the expansion strategy to neighboring provinces.
In the South, besides Ho Chi Minh City, which is a key market with over 50 stores, we have now started to deploy to neighboring provinces in the East such as Dong Nai, Binh Duong and are about to expand to Phan Thiet, Vung Tau… It is expected that, in the coming July, the chain stores of Chuk Coffee & Tea will officially be present in the Northern market.
” For the F&B Chuk Coffee & Tea chain system, in the next few months, we are committed not to increase product prices, ” said Mr. Nguyen.
Besides, Chuk Chuk said that it will strengthen KIDO’s Bakery product portfolio and KIDO’s Snacking brands so that each customer who comes to KIDO can enjoy delicious drinks – cakes. In addition, the chain is also expected to serve more afternoon tea, and at the same time increase the products of the coffee group so that consumers have more choices.
” Chuk Coffee & Tea will be an important F&B chain in the distribution and promotion of products under the KIDO Group. At Chuk Coffee & Tea, we are in the spirit of service, not too much on the front. prices so that everyone can enjoy the product, from which Chuk Coffee & Tea in particular and KIDO’s products in general can reach closer to consumers nationwide “, the representative added.
Mr. Tran Le Nguyen – General Director of KIDO Group: “The market today witnessed many changes when the products in turn had price adjustments”.
Many parties do not have plans to increase the selling price
Similarly, the Phuc Long chain shared that it has no plans to increase prices. Since joining the system with Masan Group, Phuc Long is also planning to accelerate, increase presence and improve business indicators.
In particular, Masan develops a kiosk model based on a strategic cooperation agreement between VinCommerce and Phuc Long, taking advantage of a network of more than 2,200 VinMart/VinMart stores nationwide. This combination is considered a win-win cooperation, while Masan is entering the retail industry, Phuc Long also needs an impetus to promote growth, especially in the context of the increasingly competitive chain market. intense.
On the side of Phuc Long, the chain’s revenue after returning home with Vincommerce is also expected to reach an additional 1,750 billion VND/year. Not stopping at the domestic market, Phuc Long has also expanded to the US and received positive feedback.
Also popular with office workers, especially young people, Starbucks recently learned that due to space problems, it closed its first store in Hanoi – Starbuck Lan Vien. This is the first and oldest Starbucks store in the hearts of coffee lovers in Hanoi. Accordingly, Starbuck Lan Vien’s announcement of closing from July 1 made young people regret the loss of a familiar check-in location.
Regarding coffee prices, Starbucks said that the company has no plans to increase prices.
Source: CafeF
Source: Vietnam Insider