Saigoneer

BackEat & Drink » Food Culture » Australian Chain Gloria Jean's Coffees Exits Vietnam After 11 Years

Australian Chain Gloria Jean's Coffees Exits Vietnam After 11 Years

On the heels of homegrown restaurant chain The KAfe’s exit from the local market, Australian coffee franchise Gloria Jean’s Coffees is the next to go.

According to VietnamBiz, Vietnam's last Gloria Jean’s Coffees (GJ) outlet, in the Grand View building in District 7’s Phu My Hung, closed its doors on April 20.

Hoang Khai, the owner of the store, told the news source that his location has always been one of the most successful shops in the chain. However, the store’s contract recently ended without a renewal from the Australian parent company.

Khai elaborated that GJ generally has had great success in other Asian markets, but fumbled in Vietnam because of a lack of market insight. The country’s coffee shop market is also notoriously cutthroat and volatile. GJ’s decision to stay close to its Australian business model might have hurt the brand more than it helped.

In 2006, GJ arrived in Vietnam under the franchising model with a local firm, reports VietnamNet. At the time Billy Sin, the chain’s regional manager in Asia, had high hopes that Vietnam’s robust economy and growing middle class could create success for the foreign coffee brand.

GJ also expected its focus on Arabica beans – instead of Vietnam’s commonly used Robusta beans – to differentiate the chain from existing competitors.

However, the reality was that Saigoneers weren't as taken with the brand as expected, and GJ only managed to open six stores over six years, a glacial pace compared to the dizzying rate of expansion of The Coffee House or Phuc Long today.

As of the end of 2016, the chain only had two locations in town, one in the vicinity of Turtle Lake and another in Phu My Hung, whose recent closure marked the end of GJ’s business in Vietnam.

[Photo via Vietnam Coffee]


Related Articles:

Homegrown Startup The KAfe Disappears From Saigon, Hanoi

High Rent, Competition Challenge Saigon's Coffee Chains

Hanoi Coffee Chain Gets $5.5m Investment to Dominate Vietnam


Related Articles

in Food Culture

'Trendy' Elephant Poop Coffee Taking off in Vietnam

Vietnam is known for its cafe chồn, coffee beans that are ingested, pooped out by weasels and sold at prices far higher than the normal variety. Now, a Vietnamese breeder is adopting a similar techniq...

in Food Culture

2 Vietnamese Restaurants in Saigon, Hanoi Named Among Asia's 100 Best

Vietnam’s culinary prowess is no secret, with its traditional dishes helping to draw tourists from all over the globe. 

in Food Culture

20 Vietnamese Foods You Need to Try Now

Uyen Luu, author of My Vietnamese Kitchen and contributor to Jamie Oliver’s FoodTube, shares her favorite Vietnamese dishes and how to cook them.

in Food Culture

30% of Coffee in Vietnam Has No Caffeine: Survey

If you've been seeking out cà phê sữa đá from street carts for a super-caffeinated start to your workday, you might want to look elsewhere, as there’s a chance you've been drinking coffee-flavore...

in Food Culture

5 Eateries Doing Takeaway to Try Today, as Recommended by Saigoneer Staff

Starting from this week, Saigon officially enters another two weeks of social distancing orders. While staying at home, what do you miss?

in Food Culture

5 Of Saigon’s Best Markets

When people think of Saigon, the iconic Bến Thành Market usually comes to mind. But while it’s rich in history, for locals, it’s little more than a tourist attraction. Vietnam Coracle recently took to...