Tea chain Ten Ren Vietnam to close down
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Ten Ren Vietnam will close all of its 23 stores on August 15, local franchise holder Vietnam Coffee Trading Service has announced.
The company, whose main business is the fast-growing The Coffee House chain, said the current business model does not conform to the needs of the customer. It will close the chain and plan an “appropriate strategy” for the sector.
The company wants to focus more on its Coffee House brand.
All employees and partners of the Ten Ren chain will be offered the chance to transfer to The Coffee House.
Ten Ren entered Vietnam in November 2017 initially planning 40 stores by the end of last year, but has fallen well short of that target. Its primary lines are milk tea and packaged teas.
Given the brand is operated under a franchise it is likely the Taiwanese parent will seek a new operator for the market
Questions & Answers
Q.What reason did Vietnam Coffee Trading Service give for closing Ten Ren Vietnam?
What reason did Vietnam Coffee Trading Service give for closing Ten Ren Vietnam?
The company stated that the current business model for Ten Ren Vietnam does not align with customer needs. They plan to close the chain and develop an appropriate strategy for the sector, focusing on The Coffee House brand.
Q.What will happen to the employees and partners of Ten Ren Vietnam after the closure?
What will happen to the employees and partners of Ten Ren Vietnam after the closure?
All employees and partners currently working with the Ten Ren chain will be given the opportunity to transfer to The Coffee House. This offers them continued employment within the parent company's other brand.
Q.Did Ten Ren Vietnam meet its initial expansion goals after entering the market?
Did Ten Ren Vietnam meet its initial expansion goals after entering the market?
No, Ten Ren Vietnam did not meet its initial expansion target. It planned to open 40 stores by the end of last year, but has fallen significantly short, operating only 23 stores before closure.
Q.Is Ten Ren expected to leave the Vietnamese market permanently after this closure?
Is Ten Ren expected to leave the Vietnamese market permanently after this closure?
Given that Ten Ren operates as a franchise, it is probable that the Taiwanese parent company will look for a new operator for the Vietnamese market. The brand itself may not be leaving the country.
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