In a rare public appearance, he addressed speculation about the brand’s identity, saying: “Since partnering with Jollibee, people have assumed we have become a Filipino company. I confirm Highlands Coffee is still a Vietnamese enterprise.”
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Highlands Coffee founder and CEO David Thai. Photo by VnExpress/Tat Dat |
Thai established the brand in 1999 under his Viet Thai International company, and sold 49% of its Vietnamese operations and 60% of its Hong Kong business to Jollibee for $25 million in 2012.
Jollibee acts as a strategic advisor, and is not involved in the daily operations of Highlands Coffee, which remains under his management, Thai said.
Before signing the deal with Jollibee, he had received an offer from U.S. chain Starbucks Coffee to buy him out, he revealed.
At the age of 32, the deal would have made him “a very rich man,” and his admiration for Starbucks almost convinced him to finalize the deal, he admitted.
But over the next six months he found out that Starbucks did not have a clear vision for Highlands post-acquisition and instead preferred to prioritize the best locations for its own brand.
So he turned down the offer, choosing to preserve the Vietnamese brand and compete with the giant.
Meanwhile, Jollibee was thriving with its fast food chain in Vietnam, and Thai saw the Filipino company as a partner with deep insight of the Vietnamese market. He decided to accept its offer.
“Many companies like Vinamilk and Masan have foreign shareholders, so why can’t Highlands be considered a Vietnamese company?”
Bolstered by Jollibee’s resources, Highlands expanded rapidly. By late last year, it operated 850 stores domestically and abroad, including through franchisees.
Jollibee’s annual report showed Highlands Coffee’s earnings before interest, taxes, depreciation, and amortization at nearly 2.34 billion pesos (US$41 million), a 4.5% increase from 2023.
Thai told VnExpress that the success stemmed from Jollibee’s deep understanding of his business model, customer focus and clear positioning in terms of products, pricing and taste.
The company optimized processes and scaled up systematically, he said.
Innovation is a priority, especially for a large chain, he said. “I’ve been in this industry for 25 years and faced dozens of failures to reach where I am today.”
Pricing, location and promotions also matter in the industry, but taste is paramount, and this drives product innovation and marketing, he said.
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A worker packages ground coffee at a factory of Highlands Coffee. Photo courtesy of the company |
“In coffee, we cannot fail on taste. We may not have the absolute best taste, but we ensure consistency across all stores.”
In pursuit of this goal, Highlands has opened its first roasting and grinding facility in the southern province of Ba Ria – Vung Tau at a cost of VND500 billion ($19 million).
The 24,000-square-meter automated plant ensures consistency at scale, and targets production of 75,000 tons annually when fully operational.
Moving beyond raw bean exports, Thai also plans to export roasted coffee to Southeast Asia, Japan, South Korea, Taiwan, Australia, Europe, and the U.S.
