Exploring the untapped potential of the bubble tea franchise sector
Ngày đăng: 30/01/2024
Franchising is an important strategy of the ToCoToCo bubble milk tea chain in its journey to promote Vietnamese brands and products to the international market.
Milk tea continues to be a sustainable business in the future
Customers’ love and frequent consumption demand for bubble milk tea, a sweet and enchanting drink, has created opportunities for franchised milk tea chains to continue expanding globally.
According to a report by Future Market Insights, the bubble milk tea sector is witnessing strong growth with a compound annual growth rate (CAGR) of 9 per cent, increasing the global market size from $2.72 billion in 2023 to $6.17 billion within the next 10 years.
The US, where the milk tea market is being driven by the rise of Asian food culture and the influence of social media, recorded a CAGR of 23.9 per cent in 2022. Meanwhile, the milk tea business in the UK is also predicted to reach a CAGR of 5.1 per cent by 2033, according to Future Market.
With 10 years of presence on the market, ToCoToCo is a familiar and favourite milk tea brand with millions of Vietnamese customers.
In Asia, the cradle of milk tea and the main consumer market of this beverage, some markets are also recording strong CAGR levels such as China (11.4 per cent), India (4.7 per cent) and Japan (4.8 per cent).
A separate report on the milk tea market by Momentum Works in 2022 showed that Vietnam is the third largest milk tea consuming market in Southeast Asia with an annual growth rate of about 20 per cent and a scale of more than $360 million.
Milk tea is gradually becoming a favourite and popular drink in Vietnam.In addition to reputable brands that have built a solid position such as ToCoToCo, DingTea, Gong Cha, Koi The, The Coffee House, the Vietnam’s bubble milk tea market is also a vibrant playground for emerging brands such as Phe La, Phuc Long or Mixue.
The milk tea business is so attractive that even though some brands have been present for a long time and have built a stable customer base, they are continuing to set higher goals to spread their influence and expand the market through franchising, including ToCoToCo.
Amy Truong, founder of ToCoToCo said, ToCoToCo has experienced a 10-year journey of breakthough and continuous development and innovation, serving up to 10 million customers, becoming one of the fastest growing milk tea brands and owning the largest number of stores in Vietnam.
ToCoToCo currently owns more than 700 stores in 61 different provinces and cities in Vietnam. This is also the first Vietnamese milk tea brand to launch franchises overseas with the presence of chain stores in countries such as the US, Japan, and Australia.
Investing in bubble tea right now or missing out on a significant investment opportunity
According to ToCoToCo’s founder, franchise stores account for 70 per cent of ToCoToCo’s total and are constantly growing.
“Attractive policies and high product quality help ToCoToCo become the top choice for milk tea franchise investors,” founder Amy Truong affirmed.
With the goal of bringing opportunities to many investors, ToCoToCo pays great attention to building policies for franchise partners with many attractive franchise packages with franchise costs 0 VND and monthly preferential policies, free monitoring, and no setup fees. In particular, a stable profit margin is also an important advantage to help investors recover capital quickly within a year.
ToCoToCo bubble milk tea has successfully completed the market exploration process and is an attractive franchise business model for investors in the US and Europe
Understanding that the companionship and engagement of franchise partners is the key to making the brand grow stronger, ToCoToCo also offers special forms of recognition and honour for partners or agents with good revenue.
Besides the economic values, the big plus of the ToCoToCo franchise milk tea model also comes from the autonomy of input materials with a rich and stable supply, making partners feel more secure about product quality.
The main ingredients that create delicious ToCoToCo milk teacups come from famous agricultural areas in Vietnam and must undergo a rigorous inspection process by the R&D department according to the ISO 22000, before being processed at factories meeting HACC standards.
ToCoToCo currently operates a factory with an annual capacity of about 1,200 tonnes per year with a methodical production line.
Regarding powdered milk – which is a key ingredient of bubble tea, ToCoToCo imports Non-Dairy creamer powdered milk with abundant nutritional value. This type of powdered milk is certified by the FDA (US Food and Drug Administration, under the Ministry of Health) to meet the standards and nutritional ingredients that make up product.
From the good values brought to partners and customers, ToCoToCo currently receives the attention of more than 1,000 domestic and foreign partners, of which 95 per cent of agents wish to continue renewing franchise contracts with this brand, thanks to stable business performance and consistent growth that exceeds business targets.
“ToCoToCo aims to become the number one milk tea brand in Vietnam, owning about 1,500 stores nationwide and about many franchise stores in the world in the next three to 5 years,” ToCoToCo founder Amy Truong affirmed.
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