Vietnam’s Three O’Clock Café enters South Asia through exclusive franchise deal with India’s FranGlobal

SOUTH ASIA – Vietnamese café chain Three O’Clock has announced its expansion into the South Asian market after awarding exclusive franchise rights to India’s FranGlobal.

FranGlobal has secured exclusive rights to expand the Vietnamese coffee chain Three O’Clock across India, Nepal, Sri Lanka, and Bangladesh, with plans to establish at least 100 stores over the next ten years.

As the international business arm of Franchise India Holdings Limited, Asia’s leading franchising solutions provider, FranGlobal aims to tap into the region’s rising demand for cold beverages.

Chairman Gaurav Marya highlighted the brand’s potential, citing the youthful demographic that constitutes 50 percent of the Indian subcontinent’s 1.9 billion population.

Traditionally a tea-dominant market, South Asia is gradually embracing coffee culture, offering a favorable environment for Three O’Clock’s diverse menu, aesthetically designed spaces, and premium packaging.

The first Indian outlet is slated to launch in May, targeting metropolitan hubs like Bangalore, Chennai, Hyderabad, Mumbai, and Delhi.

The expansion strategy focuses on prominent venues such as shopping malls and airports, with initial efforts dedicated to product refinement and staff training.

Founded in 2016 in Ho Chi Minh City, Three O’Clock currently operates ten 24/7 outlets. Founder and CEO Thuan Nguyen described the South Asian expansion as a strategic move to elevate Vietnam’s coffee brand on the global stage.

While Vietnam has successfully attracted international franchises, local brands face hurdles in expanding overseas due to inadequate professional infrastructure and limited expertise in global franchise promotion.

Industry expert Nguyen Phi Van, chairwoman of Go Global Holdings, projected that by 2025, several Vietnamese brands would secure international franchise deals, bolstering the country’s GDP.

Franchising is viewed as a critical avenue for enhancing the value of Vietnam’s agricultural exports, particularly coffee.

Despite being the world’s second-largest coffee exporter, Vietnam’s small and medium enterprises struggle to build sustainable brands that appeal to global investors.

According to Technavio, the global franchise industry was valued at US$2.92 trillion in 2023 and is projected to grow at an annual rate of 9.58%, reaching US$4.38 trillion by 2027.

In established markets like the U.S., Canada, Australia, and Asian countries such as South Korea, China, the Philippines, and Malaysia, franchising contributes 3 to 10 percent to national GDP.

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