Introduce yourself

Hello teacher and everybody, I’m Binh Tan. Today, I represent group 5 to present a
start-up story. Group 5 consists of 6 members. These are Thanh Truc, Duc Vinh, Quoc
Tan, Binh Tan, Minh Chau and Phuong Thao. My group’s start-up story is The Coffee
House. Mr. Nguyen Hai Ninh is the founder of The Coffee House chain. There are 6
main things that I want to talk about the presentation. That is introducing the founder,
career, introducing The Coffee House, start-up Story, achievement and lesson from
The Coffee House. First, Introducing The Coffee House’s founder.

Introducing the founder

Entrepreneur Nguyen Hai Ninh was born in 1987 and graduated from the Faculty of
Chemistry at Ho Chi Minh City University of Technology in 2010. In his 2nd and 3rd
years of university, Mr. Nguyen Hai Ninh participated in social activities and worked
at coffee shops. This process has brought Ninh into contact with many people and
widened his opportunities. After graduating from school, Mr. Nguyen Hai Ninh
attended the "Pepsi Administrator Apprentice Program". Currently, Mr. Ninh is Vice
Chairman of The Coffee House and a member of the Board of Directors of Urban
Station.

Career

In 2014, Mr. Hai Ninh successfully built the Urban Station coffee chain, worth 6
million USD, with several dozen branches in Ho Chi Minh City, Hanoi, and Da Nang
with his partner, Dinh Nhat Nam. Leaving a foreign company with a high salary, Mr.
Ninh encountered many initial obstacles when switching to the coffee business of his
own accord. Ninh started his career at the age of 23.

Mr. Ninh's initial strategy for Urban Station was to build a chain of stores in the
country and gradually change his vision with a plan to reach $1 million in revenue in
three years. And most recently, Urban Station had a turnover of up to 6 million
dollars/year after a period of crisis due to the initial failures of this young
entrepreneur.

Farewell to the management role at Urban Station. When this coffee chain achieved
rapid growth, Mr. Hai Ninh tried his hand at The Coffee House coffee chain.

In 2019, Nguyen Hai Ninh ceded the highest position to Seedcom co-founder Dinh
Nhat Nam at The Coffee House. After this change, Mr. Ninh held the position of Vice
President at The Coffee House, focusing on strategy and minimizing operational
intervention where the new CEO was in charge.

Introducing The Coffee House

In August 2014, The Coffee House coffee chain was officially launched and
continuously impressed with its rapid growth rate. From the first store at 86-88 Cao
Thang, until now, The Coffee House coffee shop chain has been present in 6 major
cities nationwide (Ho Chi Minh City, Hanoi, Da Nang, Bien Hoa). , Hai Phong, Vung
Tau). In 2015, The Coffee House was presented in Hanoi and so far has 14 stores in
the city center of Hanoi and raised $1.8 million in investment capital and generated $7
million in revenue. In Saigon, The Coffee House has now appeared in almost all major
streets. With each store, The Coffee House, this brand transforms in its own ways
based on the available concept to create a local space, close to customers.

In less than 4 years, The Coffee House has opened 100 stores across the country. This
is an extremely impressive number that surely any brand in the coffee chain market
wants to achieve. Not only that, in the context of globalization, foreign brands have
flocked to every corner, there is even more reason to be proud of the success built by a
group of Vietnamese people. The country has about 18,000 coffee shops, while there
are only more than 100 The Coffee House stores and Vietnam has 100 million people,
but at the beginning of 2019 The Coffee House has served 26 million customers.

The Coffee House brand has been "redefining" the coffee experience with an inspiring
space, friendly staff and good product quality at a price that suits the masses. Not only
that, after merging the coffee division of Cau Dat Farm, The Coffee House officially
operated its own farm in Cau Dat - the golden strip of Arabica coffee beans, in order
to provide clean coffee products and quality.

According to a survey by market research company Buzz Metrics in 2015, The Coffee
House was in the top 10 of mid-high-end coffee chains with the highest number of
positive experiences and shares on social networking sites.

In 2017, Forbes voted Nguyen Hai Ninh as one of the four most influential
Vietnamese under the age of 30 in Asia. Before entering the Top "30 Under 30" in
Asia, Nguyen Hai Ninh was in the Top "30 Most Outstanding Young Faces Under 30
in Vietnam" as voted by Forbes Vietnam.

Swot of The Coffee House

STRENGTHS
- A dedicated service culture with the motto "Customers are always right", The Coffee
House has devoted customers' hearts since its inception. The staff here are always
appreciated for their enthusiastic, friendly and enthusiastic attitude towards customers.
- A novel strategy when applying technology to business in a smart way to create all
conditions to help customers get the best experience. Not only enjoying coffee but
also having experiences such as studying, working, meeting friends, ... The Coffee
House has a clear goal in reaching customers and expanding its scale.
- Having a large number of loyal customers, a high return rate proves that the
restaurant has gained a reputation and trust from customers.
- There are many stores at famous, central and conspicuous addresses
- The shop still has good sales despite the impact of the epidemic thanks to timely
decisions in take-out and delivery.
WEEKNESSES
- The menu is not really outstanding compared to the scale. Although the shop always
has new dishes on major holidays such as Christmas, Summer Vibes,... but it is
incomplete and not appreciated. Many customers say they come to the restaurant
because of the space and service culture here
- Vulnerable to minor bugs. Because the restaurant has a fairly large reputation and
scale, customer complaints are inevitable, the information technology era makes
information spread more widely and more easily deformed, which can affect the shop.
with only minor mistakes.

Quốc Tân : Hello everyone. I’m Quoc Tan. I will present the next part of the
presentation. The next part is the last two parts of swot of The Coffee House.

OPPORTUNITIES
- The coffee house has many opportunities to cooperate with other brands to diversify
its products as well as promote the brand further in the international market.
- Easily promote new products and programs to customers because of the technology
background from the beginning
- The Coffee House has enough potential to further expand the number of branches
and scale
- Invest more in own delivery team and no longer depend on other ordering services
such as Grab, Beamin, ...
THREATS
- Coffee market is a price-sensitive market, it is difficult to change the price of
products without affecting the quality of products and services. Price competition
from bar competitors is also an issue that The Coffee House needs to consider to
maintain its position.
- High competition in the coffee business. Every year, thousands of new coffee shops
open up everywhere with countless new models and strategies, many of which also
apply the same strategy as The Coffee House, so the pressure from competitors is
pretty big.
Lesson from The Coffee House

There are 4 lessons learning from the start-up story.

1. Human-Centric :

The Coffee House is building a polite and friendly brand image like the direction of
many leading brands in the world today. Thank you and apologies are always with
them at the right time, in the right place and very delicately. Importantly, it is
expressed authentically through the way they act.

Not only retaining customers, but this coffee chain also retains the loyalty and
dedication of its employees. All employees here are treated like family and enjoy
attractive salaries and benefits. At the same time, the rewards and punishments are
made clearly and openly based on the effort spent.

"Human-Centric" from small things has brought enormous effects. Every decision and
action at The Coffee House starts with the mission "Deliver Happiness". From
employee happiness to customer satisfaction. This made them naturally avid fans of
“Coffee House”.

Building a development roadmap for employees, training knowledge about the F&B
industry, so that each individual can develop his or her career through a professional
environment. At The Coffee House, there is always team cohesion, encouragement
from management, the opportunity to challenge themselves so that each individual
becomes a better version every day. That is also the core value that makes The Coffee
House live as today amidst the volatile FB market.

2. Bringing the true value of coffee :

A business that pursues the true value of "unseasoned" coffee. At The Coffee House,
that criterion is like a kind of religion, faith and consistency. They believe that, just
doing the right thing in the long run will definitely reap the sweet fruits, just going
right will definitely reach the destination.

When starting cooperation with Cau Dat Farm to grow coffee, the journey "from farm
to cup - from farm to cup of coffee" begins. And in January 2018, The Coffee House
officially acquired 33ha of coffee along with the processing workshop and cold
storage of Cau Dat Farm. The Coffee House started the journey of self-producing,
supplying ingredients, bringing pure coffee flavor to customers.

“From farm to cup” – from farm to cup of coffee is the whole process from the
moment the business germinates, controls the harvest, prepares and roasts it, and then
serves it at the counter. Behind the journey of bringing every drop of coffee to
customers is the collective effort of many people. It takes only 30 minutes to enjoy a
cup of coffee, but it takes 3 years to fertilize a coffee tree to bear fruit. And it takes
another 2 years to get the best quality coffee.

3. Focus on customers’ experiences :

Most cafes do not expect customers to sit for too long to optimize the space and
welcome new guests. But The Coffee House has done the opposite, designing an open
and full of light space, stable wifi system with attentive service to bring the best
experience to customers. Because “Coffee House” wishes that “this is not a place
where customers come just to drink a black liquid” but also a place where people
come because of the space and quality of service.

In addition, if you look carefully, you will see that every time you enter a coffee shop
to work, customers will always find the place closest to the electrical outlet. Maybe
they take advantage of charging the phone battery for uninterrupted communication,
or maybe the computer won't be turned off halfway when the work is not done. At The
Coffee House, there will be enough electricity at each table, you can also easily
borrow a battery charger from the lovely staff. An ideal space for you to just come to
meet friends, to work or read a book.

The delicacy of The Coffee House's team is not shown in a ostentatious way, but with
the dedicated care of the staff here. From service, cashier to security. It's not strange
when we see the security guard's bright smile as soon as we arrive at the shop, it's not
surprising that our car is carefully covered in the sun. Especially, the toilets of The
Coffee House are always clean and have a pleasant scent. All of these contribute to a
complete customer experience.

4. Digitize the management process, apply technology smartly :

The Coffee House is one of the rare names that can meet the attractive experience
with a methodical chain management system. Since entering the market, The Coffee
House has applied iPOS management software to operate the system, trusting a
technology unit with more than 10 years of experience in the industry, solving
problems of system standardization. system and chain management Because they
understand that technology will be the second pillar after people, creating the strength
for The Coffee House to stand.

In June 2016, The Coffee House launched its own mobile application, which was a
decision that was "ahead of its time" because at that time, very few customers in the
Vietnamese market placed orders via applications, especially customers of the F&B
industry. In addition to the purpose of creating a sales channel, The Coffee House's
mobile application is also an effective member care channel. Each customer
transaction through the App will earn points. Every 20 points, customers get 1 free
drink and 10% discount for loyal customers.

The number 20 is neither too large nor too large and creates motivation for customers
to try to achieve their goals. Along with customer care software, Mobile App and a
number of other channels, The Coffee House has created a multi-channel system to
help manage customers, increase member loyalty and especially bring technology
experiences. interesting for users.

Thanks and the question

My group presentation ended. Thank teacher and class to listen to me. Who want to
ask the question for my group rightnow?