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Optimising profitability for franchising ToCoToCo brand by utilising local high-quality materials

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The journey of researching and refining the essence of Vietnamese agricultural products in bubble tea offerings contributes to making ToCoToCo become a national milk tea brand.

Consistency with ingredients made from local agricultural products

On the first days of the New Year 2024, ToCoToCo starts to look for new material areas across the country to serve the franchise expansion strategy. ToCoToCo’s utilising primary ingredients from Vietnamese agriculture not only helps the brand control the input of ingredients but also optimises the profitability for franchisees.

In 2023, ToCoToCo marked the first 10-year journey with the success in cementing its status as Vietnam’s premier bubble tea brand thanks to effort and creativity to increase the coverage and conquer customers by taste and service. The achievement has a pivotal contribution by the board of directors’ consistency in utilising primary ingredients from Vietnam’s agriculture.

The deployment and exploitation of the quintessence of Vietnamese agricultural product quality is reflected in the selection of raw material suppliers. ToCoToCo’s team of experts is always patient and steadfast in searching for raw material sources ranging from Oolong tea grown in Moc Chau tea fields at an altitude of over 1,000 meters, where there are cool, foggy mountainous areas, to Nam Dan cassava flour in Nghe An. One of the outstanding features of ToCoToCo’s materials is the organic green and oolong tea, which helps this brand conquer the most demanding markets, such as the U.S.

In addition, the team also looks for fruit gardens across the country to have the raw and quality materials for bubble tea offerings, for example, Ninh Binh pineapple farms, the naturally sweet and sour taste from fresh crimson mulberry jam in the cold land of Da Lat, or the fresh, nutritious taste from red dragon fruit in Binh Thuan. Entire clean agricultural products must be grown at farms meeting VietGAP standards.

Regarding powdered milk – which is a key ingredient of bubble tea, ToCoToCo imports non-dairy creamer powdered milk with abundant nutritional value and attractive aromatic flavour. In particular, this type of powdered milk is certified by the FDA (U.S. Food and Drug Administration, under the Department of Health) to meet the standards and nutritional ingredients that make up this product. In addition, for products using fresh milk, this national bubble tea brand uses pasteurised fresh milk to ensure deliciousness and is suitable for all customers from adults to children.

The material processing progress is controlled strictly to ensure food safety

At the same time, ToCoToCo’s raw materials are also strictly controlled based on many rounds of rigorous testing according to the ISO 22000 system before being processed at factories meeting HACCP standards. ToCoToCo is also one of the rare brands in the Vietnamese market that supplies raw materials that meet ISO 22000 standards, which are the food safety management standards with specific requirements for a food safety management system that enhances your ability to consistently deliver products and services that meet customers’ demand as well as statutory and regulatory conditions.

All are used and transformed by ToCoToCo with a special formula to create a harmonious drink “A taste of nature – A cup of happiness” with an easy-to-drink flavour and many diverse toppings.

ToCoToCo’s consistency in utilising ingredients from Vietnamese agricultural products with clear origins contributed to positively changing the mindset of many consumers about milk tea ingredients in the domestic market.

In the past, the enforcement agencies found hundreds of tonnes of bubble tea ingredients without a trustworthy origin despite having famous brand names on the package. The violators could not prove the traceability of the remaining products, including boba pearls, brown sugar grains and syrup, and boba tea powder packs stamped with well-known tea brand names of Royal Tea and Gongcha.

Meanwhile, in reality, the owners of numerous other bubble tea franchises neglect the management of their partners, and as a result, their partners can use ingredients of unclear origins (while they are legally obliged to use the sources set by the franchise owners), thus there is no homogeneity in the quality of drinks and services offered at these shops. There are even fake brands.

The above situation makes certain customers confused about the origins and quality of the bubble tea in the market.

Market prominence with a large-scale production facility

The company now owns nearly over 700 locations spanning from the South to the North of Vietnam, and still constantly covers and expands to many international markets with chain stores in the U.S., Japan, and Australia. The brand has won the hearts of 10 million customers.

It is a breakthrough growth in the context ToCoToCo was a latecomer than competitors in the same field and at the time, the bubble tea market was shaped. In addition, ToCoToCo was in a fierce race with more than 100 bubble tea brands, many of which are heavy-weight rivals, such as Dingtea, Gongcha, KOI Thé, The Alley and Royal Tea.

The brand is expanding its store network to reach more customers. ToCoToCo aims to continue bringing delicious beverages made from Vietnamese agricultural products to customers across the country and the world, fulfilling the goal of promoting and introducing the quality of Vietnamese agricultural products.

Young people are excited with ToCoToCo’s new offerings

ToCoToCo currently operates a factory with an annual capacity of about 1.5 million kilogrammes of pearls and 1.2 million kilogrammes of jam per year for its store system. The material is produced on a methodical production line from machinery, and raw materials, to the factory’s infrastructure, creating the unique characteristics of the products. The total monthly consumption of ToCoToCo is 3 million cups of bubble tea.

“The company’s strategy is to upgrade the position of Vietnamese agricultural products and to export refined products to countries in the Asian region, then other markets such as the U.S. and Australia. Therefore, ensuring the stable supply of raw materials that meet ISO 22000 standards is also a way for ToCoToCo to create a competitive advantage for products as well as for the franchising progress in both domestic and international markets,” Trang Nguyen, director of Engineering and Technology of Taco Vietnam Trading Service JSC, said.

“Ensuring the raw materials will help ensure the franchisee’s independence from raw material supply constraints, and simultaneously help them enjoy cost reductions in product manufacturing, leading to increased investors’ profitability,” Ms Trang Nguyen said.

The company plans to expand the manufacturing facility with modern machinery and a closed production line to conquer the franchisee in both domestic and international markets.

Hotline: 1900 63 69 36

Website: https://tocotocotea.com/

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