In just 4 months, the Pika Le beverage chain has opened over 30 outlets solely in Hanoi. Developed around a takeaway model without seating, the “Divine Lemon Water” brand has rapidly expanded its presence like mushrooms after rain, becoming a notable phenomenon in Hanoi’s food and beverage market.

The first Pika Le store launched in Ba Dinh district, Hanoi in early April 2022. Currently there are 31 stores in Hanoi and 1 in Ho Chi Minh City. With affordable prices starting from just 20000 VND per product, the chain has attracted many customers, especially younger demographics looking to try new concepts. 

Beyond the takeaway model which keeps costs low, many outlets are simply drink stalls set up on sidewalks, minimizing infrastructure needs for rapid scaling. This model has allowed Pika Le to quickly grow its store count after a short period of time.

Pika Le is owned by Pika Le Vietnam Investment LLC, located at the same address as the original Ba Dinh store. The legal representative is 29 year old Nguyen Hoang Quan. The company’s registered business scope includes non-alcoholic beverage production, mineral water. Currently Pika Le is developed using a franchise model.

While takeaway models are not new in Vietnam, the format truly took off during the COVID-19 pandemic as consumers sought more affordable, convenient options. Major coffee chains like Highlands Coffee, The Coffee House and Phuc Long have all previously explored similar kiosk-style outlets placed in convenient stores and supermarkets to leverage existing foot traffic.

At one point, Phuc Long reached close to 800 such points of sale nationwide with expectations of 3000 billion VND annual revenue. However, by 2023 the brand shifted its strategy away from less profitable locations to focus on flagship stores again.

Similarly, The Coffee House opened 8-9 kiosks within King Food convenience stores which are also part of the Seedcom ecosystem. Industry leader Highlands Coffee also briefly dabbled in takeaway stalls on sidewalks in 2020 with streamlined menus priced as low as 10,000 VND.

According to a 2023 report by iPOS, Vietnam’s coffee and tea shop market totaled 317,299 outlets by end of last year, a slight 1.26% increase. While outlet counts rose modestly, revenue still grew at a double-digit 11.6% rate to 590,000 billion VND (US$24.1 billion).

A separate Vietdata report on franchise cafe chains in Vietnam estimated the market size for restaurant and beverage chains reaches around US$1.3 billion annually. This significant opportunity in Vietnam’s beverage sector has allowed new models like Pika Le and phenomena like Mixue to find room for growth despite entering the market later than incumbents.

Founder Nguyen Hoang Quan attributes Pika Le’s rapid scaling to leveraging the takeaway model’s lower costs while accessing widespread customer bases. With over 300,000 coffee shops nationwide and consumer behavior shifting more towards convenience and value, the brand sees ample white space to further expand its presence across Vietnam. Only time will tell if Pika Le can sustain its run of opening new stores monthly and emerge as the next great homegrown beverage champion.