% Arabica in Vietnam - why, how, where and what’s next?

Source: %Arabica Facebook

After teasing us with news almost a year ago, Japanese minimalist coffee shop % Arabica finally revealed the location of its flagship Vietnam outlet in the popular Cafe Apartment along Nguyễn Huệ, Street in Ho Chi Minh City. Unlike its usual bright and minimalist design, Vietnam’s first %Arabica outlet is taking a more subtle and muted approach by paying tribute to Vietnam’s rich and long-standing love affair with coffee.

In this exclusive interview, I chat with Vynce Nguyen, General Manager of Hong Kong-based Investment Holdings Company The Kho Group and franchise investor of the popular Japanese coffee chain %Arabica in Vietnam. I find out why Vietnam, the brand’s unique localisation approach, and sourcing strategy as well as exciting plans for the future.

So, why Vietnam?

%Arabica has opened all over Asia and knowing how huge the coffee-drinking culture is here, Vietnam was an obvious choice but it was all about finding the right location for the first store. Ho Chi Minh City was our ideal location due to the food and drink culture scene and how fast this city is growing economically. 

Source: %Arabica Facebook

Why did you choose to open in the iconic Cafe Apartment?

We wanted to be respectful of Vietnam and chose The Cafe Apartment due to the history and culture of the building.  The facade of the building is so unique and stands out on the popular Nguyen Hue Walking Street. 

Tell me more about the design of the flagship in the iconic Cafe Apartment along Nguyen Hue Street - why did you decide to go with a more traditional design as opposed to % Arabica’s typically bright and minimalistic design?

We wanted to stick to the style of the building adding Vietnamese culture and modern touches to the design. There are low-sitting seats similar to cafes around Vietnam, bamboo weaving handcrafted by artisans from North Vietnam, warmer lighting to bring out the materials used and we’ve also added plants around the store to add more character to the store.

The Journey

Can you explain what the journey has been like opening % Arabica in Vietnam? I understand the announcement was made almost a year ago! 

With any opening of a new store in a new country it has been a tough journey. After the announcement, we had to deal with the COVID epidemic which caused long delays, especially it is an international brand the materials, equipment, supplies etc. came from overseas, and the coffee espresso machine itself is custom-made for each country.

Source: %Arabica Facebook

The design process took some time as we were working with an international design studio called Ciguë they have designed a few of the stores previously and we were grateful and excited to have a well-known design studio work on our first store but it also came with challenges as they were based in France and we were here in Vietnam it was a great experience and we learned a lot from it.

During that time, we also set up a warehouse here in Ho Chi Minh City for training and storage, hiring baristas and also sending them to Japan for training once borders opened. We also had the pleasure of both Global Baristas and a head barista who's worked in Hong Kong, China, Singapore and Malaysia to come visit for training. % Arabica has maintained a high standard in their brand so need to take the time necessary to have the store and quality of our drinks meet the % Arabica standard.

Source: %Arabica Facebook

Marketing to Vietnamese consumers

Who is the consumer for % Arabica in Vietnam, can you describe this person?

Anyone that has a love for coffee and the craft behind it. We want everyone to be able to try our drinks!

What is one thing you intend to leverage to market to local Vietnamese?

Definitely the brand itself which has a huge presence all over Asia and other countries. We’ve noticed there was quite a stir once it was announced we were coming to Vietnam we hope to use that hype to flow through and once people try our drinks the word will also spread

Do you feel it will be a challenge to market Arabica coffee to Vietnamese consumers who are more familiar with Robusta coffee for its flavour and of course, the price?

It’ll definitely be a challenge for us. Arabica beans tend to have a smoother, sweeter taste whereas Robusta has a stronger, harsher and more bitter taste which Vietnamese are accustomed to but what better way for them to try the arabica beans is to be through % Arabica!

What makes % Arabica so unique?

% Arabica is very passionate about coffee and every drink has been carefully crafted so every drink will have the same amount of ingredients even the amount of ice so the taste is the same all over the world.  

The % Arabica brand can be considered the “Chanel” of coffee brands. Do you agree? If yes, can you share how the brand has managed to achieve this status and how you intend to replicate this in Vietnam?

That’s a big call and thank you for putting us in that category but we are definitely a premium brand using the highest quality ingredients and premium machines to make our drinks. 

Source: %Arabica Facebook

The % Arabica Menu

Famous for its blended and single-origin coffee beans around the world, can you share a few countries of origin of the coffee beans?

We will have a range of beans from Peru, Indonesia and Ethiopia. Alongside these single-origin beans, we offer a custom roasting service to customers. Our baristas can roast the beans they purchase in our store so they can enjoy our timeless coffee at home.

Also, can you share why coffee beans are not sourced from Vietnam? Are there plans to include coffee beans from Vietnam?

We want to keep the high-quality coffee taste that is consistent around the world, therefore, all beans are the same from all our international stores. 

What’s the average price of coffee (8oz)?

Our 8oz (240ml) drinks start from 85,000 which maxes to 12oz (355 ml) of VND – 120,000 VND 

Source: %Arabica Facebook

What milk options?

We are using Meji milk as our main base milk and there are options to have Oat milk supplied by Oatside and Soy milk option as well.

What are your non-caffeine options?

We have the Matcha base varieties of drinks, the famous still or sparkling lemonade for the non-coffee and non-milk based drinkers and a range of soft serve that will also be available 

Will you have seasonal specials?

We are keeping in line with the menus internationally and will release any new items if there are any.

Are there plans to localise the menu and create coffee beverages similar or pay tribute to local Vietnamese coffee culture?

There aren't any plans as yet.  Other countries have pastries and savoury options that are based in their country so we hope we can do something similar here.

Plans for the future

So I hear there’s already a second % Arabica location. Can you share where it is and what’s the expansion plan for Arabica - more malls or commercial buildings? Plus, what is the next city we can expect Arabica to open in? 

We are still working on it and will make an announcement as soon as we can. The design of the 2nd store will be in line with % Arabica more modern stores we can't wait for everyone to see it!

This year we will also begin location scouting for Hanoi, Danang and Hoi An for the next locations. For any updates on new locations and announcements please check out our Instagram page @arabica.vietnam.

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