Why Vietnamese Coffee & Bubble Tea Brands Are On The Way To Become Global Franchise Giants

Why Vietnamese Coffee & Bubble Tea Brands Are Becoming Global Franchise Giants

What makes them franchisable, scalable, and attractive to international master franchisees

There is one question I get asked often at international franchise conferences: "Which Vietnamese brands are worth investing in for franchising?"

My answer always starts with two words: coffee and bubble tea.

Not because I am Vietnamese and want to champion homegrown brands. But because the data, the market, and the real journeys of these brands are doing the talking.

We are living in a historic moment where a cup of Vietnamese coffee can be brewed in Texas, a bubble tea with the soul of Saigon can be enjoyed in Dubai, and an Indian investor is ready to put down millions of dollars for the master franchise rights to a Vietnamese brand. This is no longer a dream — it is happening right now.

So what is driving this rise?

Part 1: The Big Picture — A Giant Market Coming Into Its Own

Before we talk franchising, let us look at the scale.

As of 2025, Vietnam has over 500,000 coffee and tea shops — a staggering jump from roughly 317,000 at the end of 2023. The chain network has more than doubled: total chain outlets grew from 816 in 2019 to 2,067 in 2025.

But that is just the surface.

Vietnam's foodservice market currently stands at USD 24.77 billion in 2025 and is projected to expand to USD 41.22 billion by 2030, at a CAGR of 10.72%.

And bubble tea — a segment often dismissed as "small" — tells its own story: Vietnam ranks third in Southeast Asia for bubble tea market size, with a turnover of USD 362 million in 2021.

This is the foundation. And when the foundation is strong enough, the brands that have built the right systems start looking beyond their borders.

Part 2: Why Vietnamese Coffee & Bubble Tea Is Different

Many countries have coffee chains. But not every country has Vietnam's advantages. Four core factors set these brands apart:

1. Origin Advantage — A Story No One Can Copy

Vietnam does not just sell coffee. Vietnam is coffee.

As the world's largest Robusta producer, Vietnam supplies 40% of the global market, backed by ideal growing conditions in the Central Highlands. Coffee export revenue has grown consistently over five years, from USD 2.66 billion in 2020 to USD 5.48 billion in 2024.

This is the "origin story" that no brand in Europe or America can compete with. When a Vietnamese coffee brand opens in New York or Dubai, it is not just selling a drink — it is selling cultural heritage, a journey, and an identity.

In international franchising, this is called an origin story with roots. And that is an invaluable asset.

2. The "Going for Coffee" Culture — Demand That Does Not Need to Be Created

Vietnamese people go for coffee to catch up with friends, go on dates, decompress after a long day, watch football, or simply because it has become a way of life.

This culture was not manufactured by marketing. It has been woven into the fabric of Vietnamese daily life across generations. And the remarkable thing is: this culture travels with the brand.

In cities like London, Sydney, or Toronto — where Vietnamese communities are living and growing — a Vietnamese coffee concept does not need to convince customers why they should try it. They already know. They already miss it. They are looking for it.

In international franchising, this is called built-in demand — one of the top criteria that master franchisee investors look for when evaluating a brand.

3. Proven Business Models — Systems First, Expansion Second

A beautiful brand is not enough to franchise. What international investors need is a replicable system.

Look at Highlands Coffee: with over 777 stores across Vietnam, it has built its position as the country's largest franchised coffee chain — drawing customers through distinctive locations, design standards, space requirements, and drink recipes that work across demographics.

Look at Trung Nguyen E-Coffee: running a low-cost franchise model with a "zero-dong" sign-up fee policy, it has expanded to 800 stores across Vietnam.

And then there is a quiet dark horse that most people have never heard of — Three O'clock Coffee. With only 9 branches in Vietnam, Three O'clock signed master franchise agreements and launched operations in two countries in 2025: India (9 branches already operating) and Indonesia (2 branches already operating).

This is the most powerful proof of all: you do not need hundreds of stores to go global. You need the right system, the right brand identity, and the right partner.

And that is exactly what a master franchisee is looking for.

4. Vietnamese Gen Z — The World's Fastest Product Testing Lab

Emerging chains like Katinat are reshaping the market not just through physical expansion but through product agility — driving traffic with trend-forward drinks like fruit teas, matcha fusion, and seasonal concepts tailored to the constantly shifting tastes of Gen Z consumers.

What does this mean for international franchising? Vietnam's market is functioning as a free product testing lab. Everything that succeeds here — from drink formulas and store design to pricing strategy — has already been validated by millions of young, demanding, and diverse consumers. When brands go overseas, they bring a proven playbook, not a hypothesis.

Part 3: What Makes a Vietnamese Coffee Brand "Franchisable" on the Global Stage?

After years of working with Vietnamese brands wanting to go global — and with international investors looking for the right brands to franchise — I have come to understand that being "delicious" or "well-known" is not enough. A brand that wants to attract international master franchisees must meet five core criteria:

Criterion 1: Replicable Operations

International master franchisees are not buying a product — they are buying a system. That means clear SOPs for every step from brewing to service to inventory management; training materials that can be applied in any country; and product formulas that are consistent regardless of who is executing them.

If every store runs differently depending on who is managing it, you have a great restaurant. But you do not yet have a franchise brand.

Criterion 2: Strong Brand Identity

Vietnamese coffee brands have a natural competitive advantage: a cultural story. But that story must be translated into an international language — through visual identity, brand storytelling, and consistent customer experience.

Trung Nguyen did this with its "creative energy coffee" philosophy. Highlands did this with modern urban spaces that still carry a Vietnamese soul. Katinat did this with a Saigon retro-chic aesthetic that resonates with Gen Z across the region. Three O'clock did this with a cool, edgy, 24/7 coffee experience that feels globally native from day one.

Criterion 3: Attractive Unit Economics

A master franchisee will ask: How much do I need to invest? When do I break even? What is the profit margin per store?

This is why kiosk and small-format models are increasingly favored in international franchising over large flagship concepts. Lower capital, faster market entry, and easier market testing.

Criterion 4: Local Adaptability

Cà phê sữa đá may not be the top seller in Delhi or Jakarta on day one. But brands that can keep their original soul while adapting to local palates will win.

This is the Jollibee lesson — the Filipino brand that succeeded in Vietnam and beyond not because it kept its menu unchanged, but because it understood what needed to change and what could not.

Criterion 5: Long-Term Leadership Vision

International franchising is a 10–20 year journey, not a 2-year sprint. Master franchisees want to know: Is the brand's leadership committed to supporting them for the long haul? Will the system continue to be invested in and upgraded?

This is where many Vietnamese brands still have work to do — not just on product, but on building genuine international franchise management capability.

Part 4: The Real Challenges — No Rose-Colored Glasses

It would not be honest to talk only about opportunity without addressing the headwinds.

First: Domestic competition is already fierce. Prime locations in Hanoi and Ho Chi Minh City are dominated by leading local chains, driving up rents and putting heavy pressure on drink pricing. If a brand cannot optimize operations at home, standardizing for international markets becomes very difficult.

Second: Input costs are rising. Climate change has caused an estimated 10–20% reduction in coffee bean output, while coffee bean costs make up 30–50% of retail pricing. This directly impacts profit margins — a factor international franchisees scrutinize closely.

Third: Franchise documentation is not yet standardized. Many Vietnamese brands run well domestically but do not yet have an FDD (Franchise Disclosure Document), Operations Manual, or Training Manual that meets international standards. This is a technical barrier that must be resolved before approaching overseas master franchisees.

Fourth: Brand awareness in new markets is still low. Outside of the overseas Vietnamese community, most consumers in new markets have not yet heard of these brands. Building brand awareness takes time and money — costs that both franchisors and master franchisees need to factor into their business plans.

Part 5: The Investor Opportunity — Why This Is the Golden Window

In franchising, the early movers always win.

When a brand is in the early stages of international expansion, master franchise fees and contract terms are far more flexible than when the brand is already globally established. This is exactly the stage that Vietnamese coffee and bubble tea brands are at right now.

These brands are making strategic moves into billion-dollar markets like the UAE, India, the US, and Southeast Asia — not just to plant the flag of Vietnamese coffee culture in premium international arenas, but to build brand recognition and support their export ambitions.

For an investor looking for master franchise opportunities in the Middle East, South Asia, or ASEAN, the question to ask right now is: Which brand do I want to be the first to bring into my market?

Closing: A Cup of Coffee and a Global Vision

Vietnamese people have been drinking coffee since before sunrise. They sit on low plastic stools along the sidewalk, holding a glass of iced coffee, watching the street come alive — and in that moment, they are not thinking about conquering the world.

But the world is watching them.

Vietnam's franchise market is estimated at USD 22 billion in 2024, driven by a young population, rapid urbanization, and a growing middle class. But more importantly, Vietnamese brands are no longer just franchise recipients — they are becoming franchisors.

Coffee and bubble tea are the first flags planted. Behind them come food, education, retail, and industries we have not yet imagined.

The Go Global journey of Vietnamese brands is no longer a question of "Can it be done?"

The question now is: "Who is next — and do you want to be part of that journey?"

Nguyen Phi Van is an international franchise expert, Chairwoman of the Vietnam Franchising & Licensing Network, and author of 10 books on global franchising and future-ready skills. She is the founder of Go Global — a platform connecting Vietnamese brands with international markets. She has brought Three O'clock Coffee to India and Indonesia, and HappiTea to the Philippines and India — all in 2025.