Highlands Coffee opened its 1,000th store on 12/6 by Ho Tay Lake, Hanoi. This milestone was beyond what founder David Thai envisioned when he launched the first store in Hanoi 26 years ago. His focus, he recounted, has always been on daily improvement, not numerical targets. This philosophy guides their coffee quality and adaptation to Vietnamese consumer habits.

Over three decades, the profile of coffee drinkers in Vietnam has diversified and become younger. Initially, older men were the primary patrons. Today, Highlands Coffee attracts many students and working professionals, with women comprising 60% of its customers. This shift has influenced coffee preferences and the design of coffee shop spaces.

"Women's tastes are diverse and complex, unlike men's preference for strong coffee," David said. Female customers seek varied flavors and styles, while young people aged 21-22 often desire energy-rich beverages. Concurrently, coffee shops have evolved beyond simple meeting spots for men to "chat over coffee." They now function as "second places," providing a comfortable environment for customers to work, study, or relax, akin to home or an office. Highlands supports this by consistently providing tables and power outlets.

David Thai, founder of Highlands Coffee, at the event on 12/6. Photo: Highlands Coffee.

David Thai, founder of Highlands Coffee, at the event on 12/6. Photo: Highlands Coffee.

This "second place" concept has also reshaped Highlands' store location strategy. Site selection is no longer confined to central business districts (CBDs) but emphasizes a "neighborhood" approach, placing stores closer to residential areas. Despite the chain's expansion, David noted a significant challenge in recruiting talent. He recalled an instance when he tried to hire an industry expert from Buon Ma Thuot (Dak Lak), the coffee capital, after opening about ten stores. The expert declined, viewing the venture as too small and David, an "Viet Kieu" (overseas Vietnamese), as overly idealistic.

David observed that skilled professionals often avoid risk, perceiving Highlands Coffee's ambition to build a leading Vietnamese coffee brand as "crazy." This perception intensified with the entry of American coffee giant Starbucks into Vietnam in 2013. Despite its substantial growth, the Highlands Coffee founder believes the domestic market still offers considerable expansion opportunities. He highlighted Vietnam's chain market penetration rate – the service usage level among coffee drinkers – at nearly 30%, significantly lower than Thailand's 80% and Indonesia's 60-70%.

Vietnam's GDP is projected to reach 514 billion USD in 2025, nearing Thailand's. This suggests that Vietnamese consumption of beverage chains could increase to 60-70%. "Highlands Coffee cannot serve all of this increased customer volume," David stated, emphasizing that "the market is large enough for 'me to open a place here, and you open one in that corner'." Furthermore, in terms of consumption, each adult Vietnamese drinks one cup of coffee daily, which is one-fifth of the European average. Data from US market research platform Coffee Intelligence indicates Asia's transition from a "producer" to a "consumer" market, with Vietnam being one of the fastest-growing consumer markets at 2,5-3kg per person annually.

Founder David Thai (left) and Le Thai Anh – Highlands' Vietnam Country Director (right) at the event. Photo: Highlands Coffee.

Founder David Thai (left) and Le Thai Anh – Highlands' Vietnam Country Director (right) at the event. Photo: Highlands Coffee.

Reflecting on Vietnam's market potential, David Thai shared that two decades ago, he hoped the country would catch up with Thailand, known for its numerous shops and commercial centers. Now, he anticipates Vietnam surpassing its neighbor, aspiring to follow developed economies such as Taiwan and South Korea. According to market research firm Momentum Works, Vietnam's coffee chain market is experiencing rapid growth, increasing by 27% between 2023 and 2025. This places it second in Southeast Asia, behind only Malaysia. Statistics show eight coffee chains in Southeast Asia have over 1,000 stores; Highlands Coffee will be the 9th, representing Vietnam.

Highlands Coffee's parent company, Jollibee Foods Corporation (JFC), reported the coffee chain's Q1 earnings before interest, taxes, depreciation, and amortization (EBITDA) at nearly 692 million pesos (approximately 297 billion dong). This represents a 9% increase compared to Q1 2025. Another report from a Jollibee subsidiary indicated that the coffee chain's revenue exceeded 1,400 billion dong.

Thuy Truong