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Midterm - Revenue Management - Đinh Bảo Ngọc Hiền
Midterm - Revenue Management - Đinh Bảo Ngọc Hiền
MIDTERM REPORT
REVENUE MANAGEMENT
Lecture: Le Hoai An
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Table of contents
List of pictures..............................................................................................................5
List of tables..................................................................................................................5
List of figures................................................................................................................6
Chapter 1: Introduction...............................................................................................7
Chapter 2: Problem diagnosis.....................................................................................9
2.1 Introduction The Coffee House..........................................................................9
2.1.1 Background of The Coffee House................................................................9
2.1.2 Special feature of product..........................................................................10
2.1.3 Operation Philosophy.................................................................................14
2.1.4 Product Positioning.....................................................................................16
2.1.5 Business model............................................................................................18
2.2 Diagnose the problem........................................................................................20
2.2.1 Business status.............................................................................................20
2.2.2 Preliminary assessment of the causes leading to the success...................22
2.2.3 Analysis of objective and subjective factors leading to the
aforementioned causes.........................................................................................23
Chapter 3: Market Analysis......................................................................................24
3.1 Location analysis...............................................................................................24
3.1.1 Advantages and disadvantages..................................................................24
3.1.2 Demographics..............................................................................................25
3.1.3 Customer's spending capacity....................................................................26
3.2 Target customer analysis target customers.....................................................27
3.3 Demand and supply analysis............................................................................27
3.4 Competitive features analysis...........................................................................28
Chapter 4: Marketing policy analysis.......................................................................33
Chapter 5: Analyze Business’s pricing.....................................................................35
5.1 Diagnosis of valuation method of The Coffee House Biên Hòa..................35
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5.1.1 Pricing method analysis.........................................................................35
5.1.2 Analysis of evidence data from product costs...........................................37
5.2 Price comparison...............................................................................................44
5.3 Evaluation the match between price and value...............................................46
5.4 The importance of pricing for The Coffee House Biên Hòa...........................48
Chapter 6: Operational Efficiency............................................................................50
6.1 Analysis of general operating model................................................................50
6.1.1 Analysis of the entity's service delivery process........................................50
6.1.2 Characteristic analysis of operating model...............................................51
6.1.3 Analyze the menu structure.......................................................................52
6.2 Analysis Human Resource of The Coffee........................................................54
6.2.1 Training procedure analysis.......................................................................54
6.2.2 The employee's schedule.............................................................................55
6.2.3 Salary...........................................................................................................56
Chapter 7: Finance Analysis......................................................................................57
7.1 Evaluating the investment cost and appropriation of budget for categories 57
7.1.1 The investment item....................................................................................57
7.1.2 Suitability of the concept and the investment cost for the target customer
............................................................................................................................... 60
7.2 Operating cost analysis.....................................................................................61
7.2.1 Labor cost....................................................................................................61
7.2.2 Fixed cost and variable cost.......................................................................61
7.3 Analyze number of customer and conclusion about financial situation........63
7.4 Break-even Point...............................................................................................65
7.5 Menu analysis....................................................................................................65
Chapter 8: Explain the success..................................................................................69
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List of pictures
List of tables
Table 2.1 Business model of The Coffee House
Table 3.1 Advantages and disadvantages of Phuc Long
Table 3.2 Advantages and disadvantages of Zen tea
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Table 3.3 Advantages and disadvantages of Highlands Coffee
Table 3.4 Compare coffee brands in Biên Hòa city
Table 5.1 Cost category targets of The Coffee House
Table 5.2 Quantity of The Coffee House
Table 5.3 Human resources of The Coffee House
Table 5.4 Convenient of The Coffee House
Table 5.5 Total value perceived of The Coffee House
Table 7.1 The investment items
Table 7.2 Labor cost
Table 7.3 Operating cost
Table 7.4 The Coffee House fixed cost and variable cost
Table 7.5 Number of guests in a day of The Coffee House
List of figures
Figure 6.1 Routine of customer service
Figure 6.2 Organizational chart of The Coffee House Vo Thi Sau
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Chapter 1: Introduction
In recent years, coffee has become a familiar drink for many people, so there
have been many ideas to build a cafe with very special spaces and excellent drinks.
Besides, the coffee market in Vietnam is divided into many clear segments, the
segment for office workers has Trung Nguyen, Highlands Coffee, etc. And the segment
dedicated to young people is always the favorite with the presence of Passio and Urban
Station.
Following the successful series from the "big brothers", The Coffee House was
launched in 2014. The Coffee House is considered a hybrid version of Starbucks and
Highlands Coffee. Therefore, The Coffee House is aimed at working customers who
like to experience luxury cafes with localized prices. The Coffee House including The
Coffee House Biên Hòa was established with the desire to affirm how the Vietnamese
coffee brand has reached out to the world with its strength. At the same time, with the
desire to introduce to all coffee lovers in Vietnam the best coffee beans from the world
famous coffee farm.
Not only meeting the quality of drinks, The Coffee House Biên Hòa also
focuses on the design of the interior space, the shop consists of two floors with high
ceilings, creating a spacious space, combined with reasonably designed to help
customers enjoy each small corner of the shop to sip a drink or concentrate on work.
At The Coffee House Biên Hòa, the ingredients to make a drink are not only
carefully selected and tested coffee beans, but the most important "ingredient" is the
dedication of the entire staff. The Coffee House and its extremely attentive customer
service attitude with the philosophy of "Customer-centered", each product or campaign
of The Coffee House always revolves around people, taking customers, employees and
community at the heart of all decisions.
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It can be said that the most interesting thing at The Coffee House is that there
was a decision "ahead of its time" - launching its own mobile application because the
behavior of ordering and purchasing goods through the mobile application has not been
approved popular in the Vietnamese market and with the F&B industry, it is still a
strange thing. Working with iPOS.vn - an experienced unit in providing technology
solutions for the F&B industry, The Coffee House “digitizes” the entire sales and
management process, with a firm commitment “One glass also delivered - Only 30
minutes”.
For all above reasons, our group selected The Coffee House to analyze and this
report includes 8 chapters, each of which will analyze the specific segments and factors
that The Coffee House Biên Hòa achieves and brings success to the store branch.
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Chapter 2: Problem diagnosis
2.1 Introduction The Coffee House
2.1.1 Background of The Coffee House
The Coffee House is a Vietnamese coffee brand officially established in August
2014 with the first store located at 86-88 Cao Thang, Ho Chi Minh city. The Coffee
House achieved a remarkable growth rate when only 4 years later, in 2018 the brand
surpassed the threshold of 100 stores from North to South (including The Coffee House
Biên Hòa was opened in 2017). With the desire "Everybody has a The Coffee House
near home", this cafe brand is constantly developing and has nearly 200 stores by the
beginning of 2021.
The Coffee House is owned by Nguyen Hai Ninh - who used to quit his role as
co-founder of Urban Station to pursue his own dream. The Coffee House is Hai Ninh's
second project with a completely "Hai Ninh" style - a different and impressive style.
The Coffee House is a game with a larger scale that does not follow the
franchise model, Hai Ninh has to take care of all stages from operation, marketing to
administration. Not to mention the competition from big companies like Starbucks,
Highlands, etc. In 2014-2015, The Coffee House focused on stores with the goal of
wide distribution with carefully selected premises so that customers can easily find,
and see.
The journey of The Coffee House begins with the experience of "Going to
coffee" by Vietnamese people. With his experience, observation ability and
sophistication, founder Nguyen Hai Ninh has realized a special feature in the coffee
culture of a part of Vietnamese people that "going to coffee" is not simply a behavior.
Come to the shop to enjoy a cup of coffee, but also an opportunity to meet and
exchange work with all customers. And since then, everything at The Coffee House
from the quality of drinks, space to the smallest experience is always focused to bring a
cafe space like "home".
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VALUES THAT MAKE THE COFFEE HOUSE:
Sincerity: Starting with the mission of “Deliver Happiness” – Giving happiness,
The Coffee House believes that when working with all sincerity and respecting
the original values of each person. Employees as well as customers, everyone
who comes to The Coffee House receives small joys, gets better and makes
others better every day.
Interested: Each product and campaign of The Coffee House always revolves
around people. The Coffee House puts customers, employees and the
community at the heart of every decision. Because when you have friends, The
Coffee House is empowered to spread good values to young Vietnamese people.
Creative: The Coffee House wants to make a difference for Vietnamese coffee
with kindness and care. Over the past 5 years, thank you for being the
motivation to help The Coffee House strive to innovate and create every day, to
bring the best products, to make your experience better and better.
Confidence: At The Coffee House, like-minded souls work together diligently
and together for great goals. Every day with The Coffee House is a day of
learning, experiencing new things, taking on challenges and committing to the
road ahead. On the next journey, The Coffee House wishes to accompany you to
nurture your dreams and persevere to the end of your dreams.
2.1.2 Special feature of product
Menu with house's coffee, macchiato, smoothie, etc. The Coffee House also
offers customers mornings and lunches with lots of different quality cakes.
With signature dishes such as Peach orange lemongrass tea, Vietnamese coffee
with condensed milk, Vietnamese White Coffee, Matcha Macchiato, Black Tea
Macchiato, Americano, Hazelnut Iced, Latte, Mocha, Caramel Macchiato, Caramel
Iced, Cappuccino, Mocha, Iced Chocolate , Ice Cookies, and other teas and fruit drinks.
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The Coffee House is famous for its 4 "best seller" dishes that almost any customer
should try when coming to The Coffee House:
Vietnamese coffee with condenses milk (32,000 VND)
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Picture 2.2 Caramel Macchiato
Caramel Macchiato has just been launched recently, but it has received an enthusiastic
reception from The Coffee House's customers. Caramel Macchiato is a harmonious
combination of espresso, the rich taste of milk and the presence of premium caramel
sauce.
Peach tea mania (45,000 VND)
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Picture 2.3 Peach orange lemongrass tea
Peach orange lemongrass tea here with the sweetness of peaches, the slight
sourness of yellow oranges and the acrid taste of fresh black tea is brewed every 4
hours. Along with the characteristic aroma of lemongrass is the plus point that makes
up the attractiveness of this drink. The Coffee House's orange-citrus peach tea cold
version will be very suitable for hot weather and very refreshing.
Matcha Latte (59,000 VND)
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Picture 2.4 Matcha latte
Matcha Latte is probably one of everyone's favorite drinks when coming to The
Coffee House. Not only does it taste great, matcha also contains high levels of
antioxidants that are good for health. If you can't drink "heavy coffee" then you should
try Matcha Latte – sure to feel sober all day long.
2.1.3 Operation Philosophy
a. Pursuing true coffee value
The Coffee House always cares about quality from planting until the most
delicious cups of coffee are delivered to customers. Right from the first stores, The
Coffee House has cooperated with Cầu Đất Farm to grow coffee according to its own
standards, starting the journey “From farm to cup of coffee” to bring cups of coffee to
customers an aromatic, excellent coffee. At Cầu Đất Farm, The Coffee House works
with each household, strictly controlling the standards of fertilization, meticulous in
each stage of selection, preliminary processing, roasting and finally making quality
coffee maximum quantity sent to customers.
b. People-centered
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Starting from the mission "Deliver Happiness", The Coffee House always
strives to bring the best values to customers and their employees.
"Customer-centric" rather than simply consider "Customer as god". Instead of
trying to sell the product you have to the customer, “I have customer A, what do I sell
to them?” is what The Coffee House pursues. Every product, every experience, every
activity comes from understanding customers.
Besides, during the peak of the Covid-19 pandemic, The Coffee House still tries
to ensure income for its employees. From the store manager, full-time employees to the
security guards, all are entitled to paid leave. At the same time, the company also
supports some basic salary days, employees rotate to work at delivery stores to earn
income. The office staff also do not have to quit.
c. Focus on customer experience – Exquisite from the smallest things
The design and layout are "measured" to the smallest details such as the table
must be exactly 75cm high, the chair height is exactly 45cm, the distance between
tables and chairs about 30cm, the new guests can sit comfortably. The lights were hung
lower than 2.5m because the average height is 1.60m-1.65m, if hung lower, it will
make customers dazzled or the sophistication right from the way of music selection.
Another special thing is The Coffee House is always fully equipped with electrical
outlets at each table so that customers can charge their phones or laptops when needed,
without worrying about interrupting their work.
d. Taking technology as the foundation, digitizing the chain management process
Recognizing that "technology is the second pillar after people", The Coffee
House has focused on applying technology to the management and operation process
from the very beginning. the early days. Joining hands with iPOS.vn - an experienced
unit in providing technology solutions for the F&B industry, The Coffee House
"digitizes" the entire sales process and manages and solves the problem of chain
management. , ensuring uniform experience across the system and at the same time
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enhancing customer experience. “One cup is also delivered – Only 30 minutes” is a
firm commitment of The Coffee House that, without a strong enough chain of
operations, no coffee chain dares to promise.
e. Marketing with light stories
Instead of putting all the attention on the product, The Coffee House puts
customers at the center and tells gentle stories around them. Sometimes they are
confided words, the emotions they want to convey, sometimes they cleverly integrate
everyday stories such as weather, life, love, small stories without beginning or end, or
sometimes the truth. The stories of the shop staff with the Human of The Coffee House
column, etc, all activities in The Coffee House's cafe marketing strategy adhere to the
business philosophy along with the "Home" positioning, which comes from the people
themselves providing valuable insight of their target audience.
2.1.4 Product Positioning
The service quality of The Coffee House is reflected in the optimization of
customer experience, taking customers as the center, from macro to micro and reflected
in the 5P strategy:
People and Physical Evidence: The design of the cafe's space makes it feel as
"home" as possible: yellow-toned lighting enhances comfort, high-rise buildings
combine the use of a lot of glass and windows to create an open atmosphere and
meeting space. Especially, the outlet design in the store is very convenient, the
music plays smoothly, the staff is considerate, taking care of customers to every
little detail to bring the best experience to customers.
Promotion: The Coffee House always focuses on customer stories rather than
products, not all content revolves around: peach tea, milk coffee... but these are
the first recorded thoughts. "Home" is not a place to come and go, "Home" is a
place where you can be heard and shared. "Home" is also a place to store the
emotions of you and your loved ones. The sharing, discussion about images and
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articles of the "Humans of The Coffee House" column are very interesting in
investing by brands closely integrated with "Home" positioning and insight into
the target audience.
Price: The Coffee House's pricing strategy is to put yourself in the customer's
shoes and ask the following questions: How much does it cost to build
experience in a coffee shop like this, and is the amount of money the customer
spends reasonable? Why? Is the cost commensurate with the cost they are
entitled to? Can they afford to stay in that cafe often? From there, the shop's
target price is 30,000-50,000 VND / person - a reasonable cost, attractive
enough for customers to come and sit often.
Product: Go for coffee, but not just coffee. Food service is a very competitive
industry because there are many substitutes. So it's normal for stores to
constantly improve their menus. Coffee shops are no exception. In addition to
the popular coffee products, the brand also develops many other products such
as milk tea, cold brew, etc. The Coffee House has launched a series of
macchiato products that are popular with young people. This has brought many
alternatives to the customers who come to the cafe, and has played a big part in
consumer retention. Regarding packaging, The Coffee House has changed the
packaging many times for the convenience of customers. The cafe started with
ordinary paper cups with plastic lids, and all products were universal. Next is
the cup with insulation padding combined with a dedicated plastic package for
hot products.
Place: Not only impresses with its dense presence in big cities, but this brand
also scores points for choosing a location that is very suitable for the target
audience. The cafes are always located in easy-to-find, easy-to-park locations, in
front of the district center, where there are outstanding street views. With the
right business philosophy: "Starting from the customer, everything is based on
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the customer's thinking", the deep understanding of customer insight and the
good application of the 5P strategy have helped The Coffee House continue to
progress and getting closer and closer to the top coffee brand among consumers.
With the development of the coffee chain, start-up brands in the Vietnamese
food and beverage market are gradually transforming themselves into "God
above all", providing customers with different products by improving service
quality.
2.1.5 Business model
Key Partner Key Activities Value Proposition Customer Customer Segment
Relationship
Provide
customers with a "Customer centric"
Menu based coffee
Distributors: comfortable rather than consider
products to
Seedcom space not only to "customer as god".
customer with the
fund and enjoy coffee, but Every product, every
unique ingredient
another one also a place to experience, every
from Cầu Đất
(unknown) chat, meet activity comes from
Farm.
friends, work, customers insights.
etc.
Third-party Sell coffee and a Meeting the needs For every 10,000 VND The Coffee House
partners: lot of kind of of customer with on the bill, the system focuses on middle-class
Loship, drink such as the most will automatically students and office
Baemin, macchiato, latte, comfortable space, accumulate 1star into workers who have stable
Now, beach tea, etc. which customers customers' points. income and would like
Grabfood, feel like "home" - Every 50 stars to find a peaceful spot to
Gojek, etc customer will get any 1 study or work.
Free Drink.
- For Gold member
(100 stars), customers
will get any 1 free
drink and 01 free piece
of cake at The Omnis
House in their birthday
month.
- (Gold member
benefits included) For
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Diamond member (500
stars) customers will
get any 01 free drink,
get Diamond
Membership Card
engraved with their
name and every 100
stars customers will get
01 free cake.
Along with the
items available
on the menu, The enthusiasm and
The Coffee friendliness of the
House, with the staff is also a huge
desire to create plus at The Coffee Provide a lot of
Suppliers: great moments House. Dedicated voucher, discount code
Cầu Đất Farm on festive service, happy every month or
occasions, has smiles, words of festival.
launched a thanks and
seasonal product apologies at the
every year. right place
Offer some kind
of cake
Key Resource
Channel
Human resource and the staff
Facebook, Instagram, MOMO, Zalo, Youtube
Unique ingredient from Cầu Đất Farm.
The Coffee House's app
The Coffee House's app
Shopee Food, Loship, Baemin, Grab food, Gojek,
Coordinating to third-party such as Shopee Food, etc.
Loship, Baemin, Grab food, etc.
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Cost Structure Revenue
Initial investment for labor, rent, utilities, marketing, Every product in The Coffee House sells for
etc. 50,000 VND in average
Cost of raw materials: Invest 50 hectares of land to Dine-in will contribute 80% of the sales
grow coffee in Cầu Đất
Take away will contribute 20% of the sales
Other OPEX
Table 2.1 Business model of The Coffee House
2.2 Diagnose the problem
2.2.1 Business status
Customer Segmentation: The Coffee House Biên Hòa is also focused on
customers who are between 20 to 40 years old and have stable income. Furthermore,
The Coffee House would like to create an ideal spot for customers to sit on and
experience the space like “home” for longer.
Environmental characteristics: Branches of The Coffee House spread across the
country, as of 2021, The Coffee House has more than 200 branches, of which The
Coffee House Biên Hòa was launched on 2nd December, 2017. Located on Vo Thi Sau
street, the largest entertainment area and many cafes and shops in Biên Hòa. The
Coffee House Biên Hòa has a fairly large scale, designed on 2 floors with spacious
space, The Coffee House Biên Hòa is an ideal place for customers to choose as a
destination to work. , study on weekdays or gather friends on weekends.
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Picture 2.5 The Coffee House Biên Hòa
Strategy to approach customers and distribution channels: The Coffee House
realizes that the need to "go to coffee" of Vietnamese people is no longer simply an act
of loading people with a black liquid containing caffeine, it has become a dynamic
action words expressing meeting, communicating, sharing experiences, space, and
drinks. Seeing such a "gap", The Coffee House was established, combining "optimal
experience space" with "reasonable price", The Coffee House became a meeting place
for friends, a working space, with service quality being the top focus.
The Coffee House has gradually affirmed its position in the hearts of customers
through deep understanding since its inception. But unfortunately, in recent years,
2020-2021, due to the heavy influence of the Covid-19 pandemic, all corners of the
economic sector have been disturbed and The Coffee House is no exception in this
direction. The revenue at The Coffee House Biên Hòa around January 2020 reached
329,000,000 VND, but after only 3 months when the pandemic became complicated
and there was a social distance directive, did the revenue at this branch drop? The
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break is only 85,000,000 VND and by 2021, which seems to be a nightmare year for all
industries, The Coffee House's revenue has fluctuated and severely affected. Along
with having to maintain a separate application platform, The Coffee House has to
spend more money than its competitors. Therefore, The Coffee House (Biên Hòa
branch included) has been more open to 3rd parties when deciding to combine with
Momo and Loship and in May 2021, The Coffee House also put the product on
Baemin's shelf. In the second and third quarter of 2021, The Coffee House has
launched 3in1 instant coffee products, instant coffee can be sold at convenience stores,
e-commerce floors.
2.2.2 Preliminary assessment of the causes leading to the success
The first thing is the contemplation space. Each different store will have
different spaces. Each space has its own new and unique features, the layout and design
is extremely suitable and convenient. The Coffee House Biên Hòa is designed in a
minimalist style, with the main brown color, creating a feeling of closeness and
comfort for customers. Every little detail such as sockets and music are carefully taken
care of. Almost every table here is equipped with a socket to serve diners.
The second is service quality, service attitude of staff. If you have ever been to
The Coffee House, you will certainly not forget the friendliness, enthusiasm and
dedicated care of the staff here, from serving, cashier to security guard. The glass of
filtered water you drink will always be filled, your car will be taken to the place. The
last thing is the convenience that The Coffee House brings such as delicious food,
cakes for customers who need lunch or breakfast.
The third is to choose the right location, The Coffee House always chooses busy
areas, with a lot of customer density, easily attracting the attention of any customers
around the area.
And finally, the policy of retaining people, not only retaining customers, but
also the loyalty and devotion of employees. All employees here are treated like family,
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enjoying attractive salaries and benefits, for example employees from the store level
are entitled to 15% of the company's shares. It is such policies and strategies that have
created the success of this chain of stores. Reaching more than 20 stores after 1 year of
operation, this cafe chain will expand and go further.
2.2.3 Analysis of objective and subjective factors leading to the aforementioned
causes
Customer service: The Coffee House always puts people at the center of all
product and service decisions. The products launched by The Coffee House and
the quality of service that The Coffee House brings are always aimed at
customer satisfaction.
Teamwork: Not only customers are interested in The Coffee House, even
employees are considered by The Coffee House as an important and
indispensable factor since its establishment. All employees here are treated like
family and enjoy attractive salaries and benefits.
Positive relationships: The Coffee House still tries to ensure income for its
employees. The Coffee House actively creates a good relationship between
members, motivating employees to work, for example, employees from the store
level are entitled to 15% of the company's shares. It is these factors that have
helped The Coffee House reduce employee turnover and create a friendly and
professional environment.
Adaptation: when heavily affected by the Covid-19 pandemic, The Coffee
House proactively removed the rule of only using its own applications, instead
the business was more "open" to third parties. 3 and started to cooperate with
parties like Loship, Baemin, Now, Grabfood, Gojek, etc to increase access to
customers
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Chapter 3: Market Analysis
3.1 Location analysis
3.1.1 Advantages and disadvantages
Picture 3.1 Map around The Coffee House Biên Hòa area
Bien Hoa is a city with a convenient location, close to Ho Chi Minh City, and
has a high economic growth rate, so this is a peaceful land for many people. With a
dense population, open infrastructure, Bien Hoa is also a place of economic strength,
developing culinary fields, in which it is especially potent in opening a coffee shop.
Demand for drinks and services as well as places for entertainment, young
people need to meet, Pham Van Thuan and Vo Thi Sau streets are two bustling streets,
surrounded by universities, colleges, and professional secondary schools, middle
schools, high schools, junior high schools, and high schools distributed in many areas.
in the city, the Post Office, Vincom Supermarket, ... and near the square of Dong Nai
province, where people here gather in large numbers. In addition, this place is also
close to foreign-invested companies, functional offices, and is the workplace of one of
The Coffee House's targets customers.
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Advantages:
The Coffee House location is convenient, simple to find, affordable, and non-
arbitrary. It is located on Vo Thi Sau street in Bien Hoa city, a big and open road with
numerous stores specializing in local and international F&B brands. The shop's area is
constructed with two floors, one for each use of learning, working, or meeting. The
business has a lot of light coming in via the windows, and the light isn't too harsh. This
highway is extremely congested with people and automobiles, especially on weekends
and holidays, and there is a significant demand for food services. At the same time,
The Coffee House Vo Thi Sau is the only branch remaining in operation in this city,
drawing a large number of consumers who want to be royal and pick this brand.
Disadvantages:
In contrast, because there are many local drink stores and many famous brands
along the road, such as Highlands Coffee, Phuc Long, and Zen Tea, the rivalry is quite
severe before the habit of choosing different sorts of drinks. The majority of young
people in this city tend to drink milk tea and juice. At the same time, because of the
range of possibilities, people choose to try experiences at a number of stores rather than
being devoted to a single restaurant. This makes it difficult for The Coffee House to
continually seek to add value in order to keep this customer.
3.1.2 Demographics
According to Dong Nai Statistics Department, the census results in August 2021
show that the population of Bien Hoa city has reached 1.1 million people, with more
than 371,000 households. In which, men accounted for 50.45%, women accounted for
49.55%, the population in Bien Hoa accounted for 32.9% of the total population of the
province. The average population density of the whole city is 125,000 people/km2, an
average increase of more than 30,000 people/year.
Bien Hoa City currently has 29 wards and 1 commune, making it the city with
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the most wards in the country. Long Binh Ward is the most populated, with a
population of over 130,000 people; Trang Dai Ward is the second most populous, with
a population of over 120,000 people. Meanwhile, Thanh Binh ward has the highest
population density, with over 6,000 inhabitants. Bien Hoa City also has the greatest
yearly population growth rate in the province. According to estimations, the population
of this city has expanded by more than 30,000 people every year during the last ten
years. Because of rapid population growth, the population density in this city is also
among the highest in the country's large urban areas. Currently, the average population
density of Bien Hoa city is more than 4,000 people/km2, the highest in the province
Consumers often spend 10-15% of their income on food and drink, whereas
manufacturing workers typically spend between 929,000 VND and 10,200,000 VND.
It follows that the average expenditure level for meals each day is between 12,000
VND and 120,000 VND. Simultaneously, it can be projected that as the population's
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wealth rises and their quality of life improves, they will be prepared to pay the price
per lunch with food and drink, as well as a workspace. or meet new friends or partners
This is also the consumer base that The Coffee House caters to and services.
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prices can only be a trend, difficult to become a familiar daily destination of
Vietnamese when customers want to be satisfied with both things: optimal experience
space and reasonable costs.
a. Phuc Long:
One of the first brands that compete directly with The Coffee House must mention the
name Phuc Long, this is one of the characteristics of Phuc Long:
Advantage Disadvantage
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On the other hand, Phuc Long's drinks mostly focus on tea combined with milk
and juice, suitable for the taste and preferences of young customers.
b. Zen tea:
As a quite famous local brand, Zen Tea is not a strange name when there are
many branches located in expensive locations in Bien Hoa, the products here focus on
tea combined with milk. , with a variety of fruit juices. Here are a few features of Zen
tea:
Advantage Disadvantage
In addition, Zen tea is aimed at the working people segment, so it expands the
milk tea delivery service to the place due to the sudden increase in the demand for
lunch orders of employees from offices and companies. This is also one thing that The
Coffee House Vo Thi Sau branch has not developed strongly in order to improve the
on-site customer experience.
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c. Highlands Coffee:
In general, Highlands Coffee is a very strong competitor of The Coffee House,
not just the two branches on this expensive street. Take a look at some of the
characteristics of this coffee brand:
Advantage Disadvantage
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Picture 3.2 Compare coffee brands in Biên Hòa city
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VND VND VND VND
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Chapter 4: Marketing policy analysis
Brand promotion through media Communication:
The Coffee House uses the following main social media channels:
- App to accumulate points and word of mouth: Customers can use the App to
accumulate points and spread word of mouth by using points to receive gifts.
Customers tend to stick with The Coffee House more and more. Then birthday
gift promotions are also used regularly
- Many discount programs to accumulate points on The Coffee House's delivery
system and online food delivery applications: Many preferential prices,
attractive discount vouchers for users when ordering delivery of The Coffee
House's products through delivery channels, order online, stimulate the number
of orders and many utilities that make customers still choose the products at the
place.
- Promotion at events: During events such as the Book Fair at Le Van Tam Park
attracting tens of thousands of people coming in and out, The Coffee House set
up a counter and implemented a program of checking in and giving Vouchers
from which to use social networks. Friendly image spreading association,
positive service to viral images.
- Building a brand story with TVC: The Coffee House is one of the pioneer coffee
shop brands in using TVC to build an image. From the core value of being a
meeting place to target customers, there is also the value of coffee beans from
the time they are in the field to the time they reach the consumer.
- Social media: Facebook, Instagram,... websites are always the main
communication channels to serve customers and place orders. The Coffee
House's Facebook page has a consistent style and identity, and the staff actively
contributes to the channel's popularity.
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- Constantly changing and pushing many programs and campaigns: On the
website and social networking sites, there are many campaigns with seasonal
elements (Tet Holiday, Christmas,...) with the image of The Coffee House that
is always changing to adapt. In order to bring a new feeling and excitement to
the brand, giving customers the opportunity to participate and be a part of
promoting this Vietnamese coffee brand.
- Smart application of technology: In the age of technology and the general trend
of the market, most stores create their own smartphone app, The Coffee House
considers this vehicle as an extremely effective member care channel. Every 20
points, customers get 1 free wish and a 10% discount for loyal customers. The
number 20 is not large enough to motivate the customer to try to achieve the
target level. From then, it demonstrates the brand's friendliness and
professionalism while building enthusiasm and increasing users' purchasing
power.
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Chapter 5: Analyze Business’s pricing
5.1 Diagnosis of valuation method of The Coffee House Bien Hoa
5.1.1 Pricing method analysis
In order to create a successful chain of stores, besides factors such as design,
menu price is one of the important factors in building a brand with customers, or in
other words, the price of the dishes. The co-drink that your coffee shop offers plays an
important role in the customer's decision whether to choose your coffee shop or not.
Moreover, good menu pricing is not only aimed at building a brand with customers but
will also have a direct impact on the restaurant's revenue and profit. Coffee shop menu
pricing is both an art and a business science. This is a very important step.
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For The Coffee House chain, which entered the Vietnamese F&B market later
than its competitors, at the beginning, The Coffee House applied a market penetration
pricing strategy.
From the beginning, because of wanting to target customers who will have good
experiences at the store, The Coffee House does not focus too much on the sales and
profits of the shop. They only care about how customers will feel about their services,
also because of placing the customer as the center, when The Coffee was launched, it
attracted the attention and love of a large number of people. help the store become a
favorite coffee shop and attract many potential customers.
The Coffee House has put itself in the role of the customer and asked the
question: How much does it cost to experience a coffee shop in a space like this? Is
what they get in return worth the cost they spent? Can they afford to go to the coffee
shop often?
With all those factors, The Coffee House decided to price their menu in the
range of 35,000 - 55,000 VND/person. The Coffee House believes that this is a
reasonable price so that customers will have the best experience and will come more
often.
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Picture 5.1 Menu of The Coffee House
Product 35%
Labor 8.2%
Profit 12.8%
Total 100%
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Table 5.1 Cost category targets of The Coffee House
Here are some typical products of The Coffee House that are priced according to
the formula:
The cost of raw materials for The Coffee House to produce 1 product of
Vietnamese coffee with ice (size M) is 12,250 VND. With a targeted product cost
percentage for iced black of 35%, the following pricing formula will be applied:
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- Vietnamese white coffee:
The cost of raw materials for The Coffee House to produce 1 product of
Vietnamese white coffee (size M) is 12,250 VND. With a targeted product cost
percentage for Vietnamese white coffee of 35%, the pricing formula would be as
follows:
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Picture 5.4 Classic cold brew
The cost of raw materials for The Coffee House to produce Classic cold
brew (size M) is 15,750 VND. With a targeted product cost percentage for classic
clod brew of 35%, the pricing formula would be as follows:
Therefore, the suggested selling price of traditional Classic cold brew (size
M) with raw material cost VND 15,750 and target product cost percentage 35% is
45,000 VND.
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Picture 5.5 Peach tea mania
The cost of raw materials for The Coffee House to produce 1 product Peach
tea mania (size M) is 18,200 VND. With a targeted product cost percentage for
peach tea mania of 35%, the pricing formula would be as follows:
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Picture 5.6 Black tea macchiato
The cost of raw materials for The Coffee House to produce 1 product of
Black tea macchiato (size M) is 17,500 VND. With a targeted product cost
percentage for black tea macchiato of 35%, the pricing formula would be as
follows:
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Picture 5.7 Matcha ice blended
The cost of raw materials for The Coffee House to produce Matcha ice
blended (size M) is VND 20,650. With a targeted product cost percentage for
matcha ice blended of 35%, the pricing formula would be as follows:
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Picture 5.8 Bread with salted shredded pork and cheese
The cost of raw materials for The Coffee House to produce Bread with
salted shredded pork and cheese is 11,200 VND. With a targeted product cost
percentage for bread with salted shredded pork and cheese of 35%, the following
pricing formula will be applied:
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who have needs to study and work. It is no coincidence that The Coffee House
always has a place in this harsh market, with reasonable prices, airy space, staff
service and unique recipes, all these factors have contributed to the success of The
Coffee House Biên Hoà in particular and The Coffee House system in general.
Regarding the product price of The Coffee House, the average price ranges
from 30,000 VND to 59,000 VND. The Coffee House's target customers are
determined to be young people who are dynamic and like to experience new things,
so with this affordable price, The Coffee House can completely entice their
customers. Visit the store often.
About the space of The Coffee House: Located on the most expensive street
in Bien Hoa, the main color is brown and white, creating elegance but equally
youthful. The Coffee House has long been a frequented place of many people here.
According to the group's observations, the shop in this city with a spacious and airy
2-storey space has attracted many customers to return after the first visit. For a
coffee shop, besides other factors, the environment is also an important factor.
Capturing the psychology of today's customers who need a comfortable and close
space, The Coffee House makes customers feel like they are still at home, but the
space is not boring and modern. Customers can enjoy coffee, cakes and be served
enthusiastically and have full tools to work like at home: electric socket, free
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filtered water. Every detail at The Coffee House is carefully invested and adjusted,
so The Coffee House is known by many customers as: “House”.
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Music 4,000
WC 8,000
Decoration 10,000
View 7,000
Total 45,000
Table 5.4 Convenient of The Coffee House
Total value perceived
67,500 VND
Table 5.5 Total value perceived of The Coffee House
Total value perceived: 67,500 VND > Price: 55,000 VND
It can be seen that with the above data, The Coffee House has succeeded in what
they bring far beyond the cost per product customers pay.
According to the actual observation of our group at The Coffee House Biên
Hòa, the average spending per customer when coming to The Coffee House is from
45,000 to 55,000 VND. This is a reasonable price, not too high and not too cheap for a
mid-range cafe and young people. More than a regular coffee shop, when paying such
an expense, customers of The Coffee House will receive the following things in return:
- Materials of clear origin are imported directly from Cầu Đất Farm.
- New products, food safety and hygiene
- Well-trained recipes
- Professional staff in the service process.
- Safe security
- Promotions and incentives exclusively for members of The Coffee House
- Comfortable, airy space
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In addition, customers are also provided with the following values when using
the service at The Coffee House:
- Free wifi.
- Air-conditioner
- Spacious and comfortable tables and chairs.
- Free parking.
About staff: The staff at The Coffee House before officially operating at the
store are trained from 1-2 sessions at the center to ensure the attitude and service
standards. The Coffee House always wishes that when customers come to the store,
they will enjoy the best things from the products to the service of the staff. Therefore,
The Coffee House always upholds the attitude of employees when serving customers.
Staff are always happy, welcoming customers from the moment they enter the shop to
the time they leave. In addition, to increase the professionalism of staff, at a certain
time, The Coffee House will organize a training session to check their staff.
In terms of facilities: The Coffee House, before its launch, has “measured and
made shoes” for each table and chair - things that customers will experience when they
come to the store. The Coffee House always pays attention to the feelings of
customers, so they had to design and consider every corner of the store how to make
customers feel most convenient and comfortable when coming to the store. To do that,
they have invested in many test models, as well as observing the feelings of customers
visiting the shop. The Coffee House Biên Hòa officially opened in 2016, with
harmonious colors, spacious design so that customers always find the feeling of
friendliness at home but also enough modern breath.
5.4 The importance of pricing for The Coffee House Biên Hòa
To create the success of a coffee shop, product pricing is one of the most
important steps that directly determines the profit, growth of the store and above all,
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customer satisfaction. However, the product pricing is a complicated and difficult
process, in addition to the investor having to determine the price to ensure their image
in the market, they also have to make the right decision. Measure thinking about how
the price competes with competitors.
Having the right pricing strategy in place is key to maximizing profits selling
products and competing in this increasingly changing and competitive F&B market.
For a coffee shop, when strategizing the pricing of their products, store owners
need to consider the costs that affect the product. Cost here can be understood as the
costs that the shop owner needs to pay to create a finished product. In addition, there
are a number of other costs that also affect the product pricing strategy such as:
Basically, the pricing strategy is based on the overall analysis of the supply-
demand relationship and the customer's ability to pay. So in two cases:
- Overpriced: the product price is higher than the current value, customers are not
willing to pay.
- Lower Pricing: Price the product below its current value.
In short, the right product pricing strategy is the key to the success or failure of a
business.
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Chapter 6: Operational Efficiency
6.1 Analysis of general operating model
6.1.1 Analysis of the entity's service delivery process
Mark beverage
Welcome Ring
name
Ring: After the customer chooses the item, the cashier will confirm each item in
the order, and the total bill. This step avoids errors in the ordering process.
Tender: In the next step, the staff will ask the customer what form of payment
(cash, Card bank, Momo, ...) and proceed to pay and give the bill with the table number
to the guest.
Gather: then the staff manipulates the order on the glass or cup, on which there
is information about the dish, a special requests from the customer (reducing the
amount of sugar, the amount of ice, ...) to the barista.
Serve: After the barista completes the dish in order, the waiter will proceed to
deliver the dish and serve it at the table to the guest.
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During the working process, all employees are required to always keep a warm,
friendly, and professional attitude, especially in front of guests, smile, and make eye
contact to create sympathy for customers, improving the service experience at store.
Manager Store:
- Responsible for running the store:, arranging work shifts, arising problems =>
ensuring service standards, providing customers with the experience
- Receive and deploy information from AM about company rules, issued policies,
and promotions.
- Controlling product quality, track goods at the store
- Responsible for revenue, controlling costs, maintaining profits, developing
profits, make periodic reports on the business situation at the store.
- Managing human resources, building a friendly and inclusive working
environment for members.
- Provide professional guidance and training, and at the same time listen, care and
support the difficulties or questions of employees.
Supervisor
- Being responsible for the main responsibility during the shift, directly handling
arising problems and questions from customers, maintaining service quality
during the shift.
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- Supporting store manager (SM) to order & control goods, manage inventory,
effectively use store costs
- Managing human resources in shifts, ensures work processes are carried out
accurately and efficiently.
Barista, Cashier, Waiter/waitress.
Made from coffee beverages has always been the most outstanding products and
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brands and focused investment The Coffee House. Beverages such as Americano,
White Coffee, Black Coffee,... are made from fuel with a strong flavor from
Vietnamese coffee beans.
● The menu is organized from top to bottom, left to right. The first side will
feature coffee-related foods such as Vietnamese coffee, machine brewed
coffee and cold brew. Fruit teas and macchiato will be served on the second
side. The last side is the crushed ice dishes and other drinks. Designed and
constantly changing because The Coffee House regularly updates and
launches new dishes, the menu still ensures visual elements, product names,
prices are highlighted, and the color tones are also extremely eye-catching. .
● Size: dishes at The Coffee House are available in 3 sizes (S/M/L) and are
packed in plastic or glass cups, depending on the nature of hot/cold dishes.
Vietnamese coffee dishes, fruit tea, some macchiato dishes will have all 3
sizes, the rest will have sizes S / M or only M, the prices are all arranged
appropriately on the menu. All are made according to a separate formula,
which is measured in relatively accurate proportions according to the brand's
standards.
● Average dishes range from 45,000 VND - 59,000 VND, including
Vietnamese coffee with the lowest price at 29,000 VND (size S) and iced
dishes at 65,000 VND (size L). In general, this price is suitable for office
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objects, students, people with average incomes and above who can get
quality drinks and modern space at The Coffee House.
6.2 Analysis Human Resource of The Coffee
6.2.1 Training procedure analysis
For The Coffee House, sustainability must always take the employees as the
core. The owner of The Coffee House chain - Vietnam Coffee Tea Trading and Service
Co., Ltd - is constantly concerned with creating a pleasant working environment, a
culture that fosters and inspires staff morale. Employees get the qualities of
friendliness, solidarity, creativity, and dynamism into the flow of work every day, as
well as possibilities for advancement and professional growth based on each
employee's capacity, in an incredibly perfect working environment.
- 1 manager
- 1 shift supervisor
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- 3 Barista full-time, 6 barista part-time
- 3 security.
- Age: 20-28 years old
- Gender: 6 females, 3 males.
- Education level: College, University
6.2.2 The employee's schedule
Regulations on time and job requirements at The Coffee House are as follows:
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registered before each week. When there is any reason that they cannot complete or
cannot handle the shift, employees can talk to the Shift Supervisor to allocate and
arrange staff in the shift accordingly.
6.2.3 Salary
- Part-time: 14,000 - 18,000 VND/hours + regular service ( the 30% discount on
The Coffee House system nationwide)
- Full-time: salary ranges from 5,000,000 to 7,000,000 VND, many opportunities
to develop into manager, supervisor, enjoy leave and social insurance, health
insurance after 2 months probation).
- Security guard: salary ranges from 5,000,000 to 7,000,000 VND, vacation and
social insurance, health insurance after 2 months probation)
This is the basic salary that the employer The Coffee House initially offered,
during the working process, when employees complete their work well, create a lot of
value for the store, they can be considered for an increase in salary.
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Chapter 7: Finance Analysis
7.1 Evaluating the investment cost and appropriation of budget for categories
7.1.1 The investment item
Unit:
VND
57
y
Construction
Furniture
Bar
58
Sink 1 2,900,000 2,900,000
Eating utensils
Teaspoon 25 100,000
WC
Other
Total 3,219,855,000
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Picture 7.2 Investment structure
7.1.2 Suitability of the concept and the investment cost for the target customer
The Coffee House since its launch has positioned their brand towards
customer-centricity, emphasizing the value of connecting people with new
experiences. Therefore, based on the above data, it can be seen that The Coffee House
has spent a large amount of money to invest in decoration as well as equipment for
each of their stores. From tables, chairs to equipment and machines, The Coffee
House takes care of every detail and is modern to bring customers the most
satisfaction. With a spacious and airy space that is a combination of classic and
modern, The Coffee House has long become an ideal place for both young people to
exchange, chat or even those who want to find a quiet space to study and work. It is
not difficult to realize that in both off-peak or peak hours, The Coffee House Vo Thi
Sau serves a large number of guests.
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In addition to the equipment at the store, The Coffee House is also very
interested in the customer's experience of the products they provide, The Coffee
House has merged with Cầu Đất Farm, officially operating its own farm in Cầu Đất
aims to provide clean and quality coffee products. The Coffee House has won the love
and loyalty of customers through careful investment and perfectionism in every stage.
26,000*8=
Shift supervisor 1 5,900,000 5,900,000
200,000
23,000*6=
Barista (Full-time) 3 3,900,000 11,700,000
126,000
TOTAL 55,600,000
Table 7.2 Labor cost
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Others OPEX 1.5%
Marketing 2.5%
Maintenance 0.7%
Reinvestment 0.5%
Depreciation 10%
Table 7.3 Operating cost
Unit: VND
Fixed cost
Variable cost
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The Coffee House has a staff organization quite different from other stores. For
The Coffee House stores, their staff includes only 4 positions: manager, shift
supervisor, full-time bartender, part-time bartender and security guard. The difference
of The Coffee House is that all staff except the security guard ensure the work from
preparation to serving customers.
Employees at The Coffee House have a working schedule that must be from 5-
6 hours/day and 4-6 days/week for part-time employees. As for management positions
and full-time employees, they will have to be at the workplace within 8 hours/day and
have 1 day off/week. In terms of service procedures, recipes and costumes, before
officially starting work, employees are always thoroughly trained. In addition, during
the initial working period after being admitted, there will be a level and skill test by
the manager. This is what The Coffee House has been doing very well, not only
showing customers the working style but also increasing customer loyalty.
The cost structure of The Coffee House Biên Hòa is similar to some other
coffee shop chains in the Vietnamese market. It can be seen that, in order to ensure the
supply of quality ingredients, to ensure that each product served to customers ensures
the following factors: clean-delicious, The Coffee House has invested a rather large
expense in the key. This factor- accounts for 59.5% of the total cost. According to a
report from the owner from The Coffee House, when buying Cầu Đất Farm, the cost
of goods sold (COGS) of this chain of stores increased by 35%. The reason why the
COGS of The Coffee House chain is higher than other coffee shops is because they
want to support a part of the costs for coffee farmers.
As for the cost of space, because it is located on Vo Thi Sau street - known as
the most luxurious and bustling street in Biên Hòa city, the number that The Coffee
House Biên Hòa has to pay monthly for here is 60,000,000 million VND, accounting
for 15.45% of the total cost.
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Morning 63 7 70
Lunch 45 8 53
Tea time 50 6 56
Dinner 55 2 57
The above data is based on the average actual data in a day when a customer
comes to use the service provided by The Coffee House Biên Hòa's manager. It can be
seen that, at all 4 times, the average number of The Coffee House Biên Hòa a day is
over 50 guests/session.
According to the actual observation of the group, in the morning in the 8.00
AM to 11.00 AM time frame is the time when The Coffee House receives the most
visitors of the day, the main customers in this time frame are people who are working,
usually they will choose The Coffee House to discuss work or just a place to focus on
work because the space here is airy and spacious. The Coffee House Biên Hòa is
located on a road with quite a few companies and businesses, so can also see that in
the morning, The Coffee House receives some orders placed directly through their
application or on other e-commerce platforms such as: Shopee Food or BAEMIN.
In the lunch time, the number of visitors at this time was recorded as the lowest
compared to the rest of the time. However, this is the time when The Coffee House
Biên Hòa receives the highest number of orders.
If The Coffee House Biên Hòa has a large number of office workers in the
morning and tea time, the majority of people go to work, then in the dinner time The
Coffee House is chosen by young people as a destination to talk and enjoy delicious
and strange drinks of The Coffee House.
Depending on the stage of the day, in the mornings and lunch time, customers
have needs to study and work, so the average time of customers sitting at The Coffee
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House is from 2-4 hours. On the other hand, in the dinner time we noticed that
customers only spend 1-2 hours at the store.
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Pictute 7.3 Menu analysis
The above data is based on The Coffee House's financial income in April 2021,
from the first day to the end of April. We gathered and examined the data goods at the
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shop in April, as well as the complete working procedure and income brought back in
a month. The Coffee House Vo Thi Sau branch is medium-sized, and it is the only
branch in Biên Hòa City at the time. This store-branded draws many consumers who
want to enjoy beverages and workspace.
According to the extensive study in the table, black coffee dishes prepared
from pure coffee beans (hot/cold) and coffee mixed with milk are items in the star
category, such as black coffee, milk coffee, and white coffee, bring in an
overwhelming amount of income. Customers are office employees or those who have
a habit of consuming coffee every day, thus these items are often ideal for Vietnamese
people's morning coffee habits. It is highly perfect for breakfast to start a new day of
work and study, according to many different recipes mixed with milk, presented with
a variety of breakfast and lunch dishes available at the shop...
On the other hand, we can observe that the menu is being supplemented with
fruit teas: Orange lemongrass peach tea, litchi tea, oolong tea, which have consistent
sales, these components include chosen fresh tea, with toppings of fruit and nuts (chia
seeds, aloe vera seeds, etc.), suited for consumers who seek a light refreshing fruit tea
and aromatic tea mixed with milk, creates milk tea - a popular drink among young
people; "Peach orange lemongrass tea" is a popular dish at The Coffee House,
accounting for 6.83 percent of sales; the cup of tea is standard and excellent. This soft
chill is a delicacy that most visitors to The Coffee House must eat at least once. There
are also dishes that blend tea and macchiato - the creamy milk froth is an appealing
option for customers while shopping. In April, these meals accounted for 2.9 percent
to 3.1 percent of overall sales.
With the segment of ice blended with chocolate and matcha, ranging from
0.82% - 1.99% with some favorite drinks in this segment are Chocolate ice-blended,
Cookie ice-blended, and Coffee ice-blended. Choco ingredients, coffee, matcha,
cookies with fresh milk and fresh cream mixed with ice from a special recipe from
The Coffee House, and then a layer of cream on top. This drink has a sweet, fatty taste
for those who like the slightly bitter taste of coffee, matcha with a little sweetness of
the milk. The iced dishes are easy to drink for anyone, suitable for all ages.
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The last section of the menu includes sweet and savory cakes, which are sold at
The Coffee House locations at a rate of 0.94 percent on average, as well as cakes that
can be used for breakfast or lunch, such as banh mi pate and banh mi stick.
Cheesecake, Spicy pate, The salted egg Croissant to Mousse cakes (Chocolate Bear
Mousse, Mousse Passion Cheese, Mousse Tiramisu) are a mix of soft, aromatic cake
and cheese layer with fruit jelly, a perfect combination while sipping coffee and eating
cake. In addition to coffee and pastries, this coffee business has lately started serving a
variety of "sipping" foods such as dry jackfruit, shredded chicken with lemon leaves,
and creating more experiences for customers.
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Chapter 8: Explain the success
After analyzing the factors, we found that The Coffee House is a very
successful coffee business model in the market. Specifically, The Coffee House has
had a remarkable growth rate in just 4 years, has expanded branches across the
country and up to now, The Coffee House has been a familiar name to all coffee
lovers. That success stems from different factors, such as:
First, choosing the right spot is one of the factors that bring the first success
of The Coffee House. Most of The Coffee House's selected areas are busy
areas, with high population density, typically in Biên Hòa, The Coffee
House is located on Vo Thi Sau street, which is an area where many
services are concentrated on dining and entertainment.
Secondly, create the design, space, and atmosphere for the shop with the
concept that each cafe is an integral part of the surrounding community.
Therefore, when designing the shop, The Coffee House always tries to
bring locality into each store, giving customers a feeling of closeness and
familiarity as "home".
Thirdly, maintaining the quality of services and products, The Coffee House
with the criterion of bringing customers the most delicious cups of coffee,
right from the beginning, The Coffee House has cooperated with Cau Dat
farm to grow coffee according to standards and pursue true coffee values.
At Cau Dat Farm, The Coffee House works with each household, strictly
controlling the standards of care, meticulous in each stage of selection,
preliminary processing, roasting and finally making quality coffee
maximum quantity sent to customers.
Fourthly, adapt to create stronger bonds with customers. During the period
when the Covid pandemic is becoming increasingly serious, The Coffee
House has also decided to "open up" to third-party parties such as Baemin,
Now, Grabfood, etc in order to increase its coverage and reach out to more
customers.
Finally, besides the above factors, the factors that international coffee
brands in Vietnam such as Starbucks, The Coffee Bean, etc can also do, the
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most important factor that brings the success of the coffee chain The Coffee
House in general and The Coffee House Bien Hoa in particular is the price.
Price plays an important role in deciding to choose a cafe in a multitude of
choices, The Coffee House focuses on 4 ways of pricing products as
follows: pricing based on demand and affordability, pricing competitor
pricing, cost and profit pricing, and food standard pricing.
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