If you are considering opening a Vietnamese coffee shop in the US, you’ve probably wondered: does the market really have potential, do Americans like Vietnamese coffee, and is the investment worthwhile? This article will answer those concerns for you.
The coffee market in the US
The US is the world’s largest coffee-consuming country, with more than 400 million cups of coffee consumed daily. In 2023, the coffee industry revenue in the US was estimated at around $80 billion and is expected to grow steadily year after year.
Currently, the US has over 37,000 coffee shops nationwide, but they are mainly large franchise coffee shops like Starbucks, Dunkin’, etc. Coffee shops with unique characteristics like Vietnamese coffee are still very limited. Therefore, the business idea of opening a Vietnamese coffee shop in the US is completely feasible.
Additionally, in many major cities like California, Texas, Washington D.C., there is a fairly large Vietnamese population, so the demand for Vietnamese coffee is almost certainly there. This will be the most loyal and easily accessible customer base.
Opportunities when opening a Vietnamese coffee shop in the US
- Product differentiation: Americans are already too familiar with espresso, latte, cappuccino. The appearance of new products like drip coffee (phin), iced milk coffee, egg coffee, coconut cream coffee, butter coffee, etc., will create curiosity and new experiences.
- Cultural differentiation: Vietnamese coffee culture emphasizes sitting and enjoying slowly, chatting and relaxing. Bamboo tables and chairs, lanterns, paintings, traditional items… will create a sense of familiarity and difference compared to fast coffee shops in the US. From there, your shop has the potential to attract customers who want new and unique experiences.
- Easy brand story building: The shop can tell stories about the origin of Vietnamese coffee, famous coffee-growing regions (Buon Ma Thuot, Lam Dong…), or traditional harvesting and processing methods of Vietnamese people. This is a highlight that creates unique brand value compared to regular coffee shops.
Challenges when opening a Vietnamese coffee shop in the US
High costs
Opening a coffee shop in the US is not as simple as in Vietnam. In major cities like New York, Los Angeles, or San Francisco, rent for commercial space can reach thousands of USD per month for just a small area of a few dozen square meters.
Additionally, the US has strict legal systems regarding food safety, fire safety, business licenses, taxes… all of which are mainly resolved with “money.”
Furthermore, labor costs in the US are among the highest in the world. The minimum wage in the US is much higher than in Vietnam, plus insurance costs, taxes, and barista training costs… These factors also require you to have strong capital.
Differences in consumer habits
This is both an opportunity and a significant challenge. Americans already have their own coffee preferences, and this creates a major challenge. They usually prefer less bitter coffee (mainly using arabica), brewed with lots of milk or added sweet flavors. Meanwhile, Vietnamese coffee (mainly robusta) is strong, concentrated, and high in caffeine, which may make new drinkers feel it’s “too strong.”
Our advice is that shop owners can consider adjusting the coffee-milk ratio, or adding Vietnamese-style cold brew, cappuccino, or latte drinks – to suit local tastes while maintaining Vietnamese identity.
Competition from major brands
The US coffee market has been dominated by strong brands. For example, Starbucks, Dunkin’, or Peet’s Coffee… are all names deeply ingrained in Americans’ mindset. Therefore, educating the market and attracting customers with Vietnamese coffee products is not easy, requiring time and some talent.
Conclusion: Should you open a Vietnamese coffee shop in the US?
You can absolutely open a Vietnamese coffee shop in the US if you prepare thoroughly. The US coffee market is very large and is favoring new coffee experiences, while phin coffee, iced milk coffee, or egg coffee offer unique flavors that are not yet popular. To succeed, the shop needs to adjust flavors to suit Americans, create spaces that evoke Vietnamese culture, and invest in marketing strategies to compete with major chains. When adequately prepared with products, costs, and experiences, the shop can serve both the Vietnamese community and local customers who love uniqueness.
Where should I start?
If you are considering opening a Vietnamese coffee shop in the US, the best way is to start small and test the market before making large investments. You can try opening a kiosk, take-away shop, or mobile coffee cart, where rent and staffing costs are lower but still sufficient to test products and service style. Choose 1-2 signature items like phin coffee, iced milk coffee, or egg coffee to create a distinctive mark, while adjusting flavors to suit local drinking preferences.
At the same time, invest in experience and branding: décor space that evokes Vietnamese culture, stories about coffee origins, traditional brewing methods, and “instagrammable” elements to attract customers. Building a strong brand from the beginning will help you differentiate from major chains that have dominated the market.
Additionally, prepare a detailed budget and operational plan, including costs for imported ingredients, staff, business licenses, and marketing. Starting small, experimenting, learning, and gradually optimizing will help you reduce risks while gradually developing your Vietnamese coffee shop in the US sustainably.
Finally, an important factor that cannot be overlooked is finding a reputable Vietnamese coffee supplier. Good and consistent coffee will be the foundation for the shop to score points with customers and build a long-term brand. Fortunately, Hello 5 Coffee is everything you’re looking for – we are a high-quality pure Vietnamese coffee supplier with over 12 years of export experience and support for international partners. We have excellent products ready for startup coffee shops, or if needed, we also have OEM/private label services.
Contact us immediately via WhatsApp (+84) 81 535 5505 or email info@hello5coffee.com for quick support!
Thus, the above article has analyzed in detail the opportunities, challenges, and steps needed to prepare when opening a Vietnamese coffee shop in the US. We hope this information will help you have a realistic view and make the right decision about investing in the foreign coffee market. We wish you success in your journey to bring Vietnamese coffee flavors to the American community and create a sustainable coffee brand.
