Growth plan for Starbucks Vietnam, Cambodia
Mar 10, 2016
Last year, Dairy Farm opened six new Starbucks Vietnam cafes and its first in Cambodia – in the capital city Phnom Penh last December.
“This new market offers significant opportunities as there is no dominant market player,” said CEO Graham Allan. “The group is currently working to fully understand local tastes and preferences.”
In Vietnam, the company says it will continue – for now – to focus expansion in the main cities of Ho Chi Minh and Hanoi.
Starbucks operations in Vietnam, Cambodia and Hong Kong – where the network is also set to be expanded this year – is operated by Dairy Farm’s restaurant subsidiary Maxim’s.
“Maxim’s delivered another year of solid results,” Allan said in the company’s annual operational review.
“Expansion of its Chinese casual dining restaurants and Japanese restaurants continue in Mainland China.”
Maxim’s opened 44 net new outlets during the year, including six in Mainland China and the new Starbucks outlets.
Dairy Farm’s restaurants division reported US$1.9 billion in total sales, representing an increase of 8 per cent year-on-year, while the profit contribution increased by 9 per cent as the business delivered another year of record earnings.
“Looking ahead, the macro economy and local business environments are expected to be challenging in 2016, with continued currency volatility and fragile consumer confidence,” said Allan.
“The group sees exciting prospects, however, with a number of establishments opening at the Shanghai Disney Resort in June 2016, including the staff canteen, The Cheesecake Factory and Japanese chain concepts Ippudo and Dondonya.”
He said besides expanding in Vietnam and Cambodia, Maxim’s will continue to explore further opportunities for acquisitions and/or franchising throughout Asia.
Source: Inside Retail Asia