Bubble milk tea brand sees rapid and sustainable growth in 2023

Closing a relatively successful 2023, ToCoToCo, a Vietnamese milk tea brand founded and operated by Vietnamese people, is heading towards a new journey with sustainable and long-term growth goals.

Ms. Amy Truong, Founder of ToCoToCo, said it celebrated a decade of establishment and development at the end of last year after posting impressive results.

ToCoToCo has grown dramatically, with more than 700 franchise stores and a presence in 56 of Vietnam’s 63 cities and provinces, becoming one of the fastest-growing milk tea brands and possessing the largest number of stores in the country. It has also expanded its influence internationally, opening stores in Australia, Japan, and the US.

The birth of the ToCoToCo Ice Cream model, featuring an eye-catching orange color scheme, is among the highlights demonstrating ToCoToCo’s flexible and effective business strategy over the past year. In just a short period of time since launching its first store in April last year, ToCoToCo Ice Cream has seen rapid expansion to more than 100 stores, winning over customers with two main products: ice cream and coffee.

This move has opened up more opportunities for ToCoToCo to reach new customers as the food and beverage (F&B) market faces challenges due to the impact of economic crisis causing customers to tighten their belts.

According to an F&B industry survey and report released by Vietnam Report in September, the total earnings of F&B businesses fell 3.9 per cent over the same period of the previous year and will bottom out at the end of 2023.

Data from ToCoToCo shows that up to 95 per cent of agents hope to renew their franchise contracts with the brand thanks to stable business performance and consistent growth that always exceeds business targets.

Many bubble tea franchise partners also put their trust in the brand by not being limited to only one store and instead opening four or five in different locations. Franchise stores account for 60 per cent of ToCoToCo’s total and are constantly growing. It is proud that its store network is continually expanding and serving many customers everywhere.

The persistent efforts of the pure Vietnamese milk tea brand have given ToCoToCo an impressive record of achievement throughout its decade of development. Last October, ToCoToCo was honored in the Top 5 prestigious national quality brands in 2023 by the Asian Economic Research Institute.

In addition, ToCoToCo is proud to be the No. 1 Brand in Vietnam in 2022, as voted by the Asian Business Development Research Center, a Top 10 typical Asia-Pacific brands in 2021, and the most popular milk tea brand, according to a Nielsen survey in 2020.

Prioritizing responsible business

One of the important factors behind ToCoToCo’s success is the rigor in selecting input material sources and the autonomy of raw material areas.

From a country with developed agriculture, the ToCoToCo bubble milk tea brand has always been a pioneer in using local agricultural ingredients that meet international standards and were grown from the rich lands of Vietnam. The main ingredients are green and oolong tea from northern Phu Tho and Thai Nguyen provinces that meet organic standards, cassava from north-central Nghe An province, and fresh fruit grown and harvested from famous agricultural regions such as Da Lat in the central highlands and Ninh Binh, Hung Yen, and Moc Chau in the country’s north.

Becoming independent in raw ingredients sourcing has helped ToCoToCo control the quality and safety of input materials, minimizing risks in transportation and storage. This is also a plus in helping franchise investors feel secure about having an abundant supply of ingredients with high and stable quality.

“All materials used by ToCoToCo must undergo testing by the R&D department,” said Ms. Trang Nguyen, Director of Engineering and Technology at the Taco Vietnam Trading Service JSC. “Ingredients must be of clear origin, accompanied by invoices, and priority is given to using products manufactured from factories with ISO 2:2000 certification.”

From selected ingredients, under the research and creativity of the professional R&D team, diverse beverage menus and hot trends have been rapidly introduced to customers at reasonable prices.

A sustainable business perspective and a focus on quality help the ToCoToCo franchise milk tea brand gain trust from customers, partners, and investors. While the Vietnam Investments Group continues to commit to long-term companionship with ToCoToCo after many years, customers still remember and return to the brand, even though there are constantly new milk tea brands arriving on the market.

On average each year, the brand sells 36 million cups of milk tea and produces over 1.5 million kilos of pearls and 1.2 million kilos of fruit preserve.

Ms. Amy said she is confident about ToCoToCo’s long-term development potential even though the milk tea business and franchising market is becoming increasingly competitive. “ToCoToCo is not simply a drink made from rich Vietnamese ingredients; each cup also contains joy, happiness, and love,” she affirmed.

Hotline: 1900 63 69 36

Website: https://tocotocotea.com/