In Ho Chi Minh City, beloved milk tea brand Hot&Cold to close after 14 years

The information is shared through an emotional farewell letter sent to its loyal customers.

Founded in 2011, Hot&Cold quickly became a familiar name among youth in the southern metropolis.

Known for its catchy slogan ‘Endless Toppings – Bold Tea Flavor,’ the brand has stood out with its unique blend of milk tea and skewered snacks, paired with cozy spaces ideal for studying, chatting, or casual dates.

From humble beginnings, the brand has expanded rapidly to over 65 locations nationwide, peaking at more than 80 stores.

According to the company, it has served billions of cups of milk tea throughout its history.

The announcement of its closure has sparked a wave of nostalgia, especially among members of the 9X generation.

For many, Hot&Cold was more than a beverage stop – it was a cherished part of youth, particularly during the mid-2010s when milk tea was still an emerging trend in Vietnam.

“Please don’t close. Just keep one store open so I can still get my favorite drink,” pleaded longtime customer Ruby Pham in an online comment.

Kim Hang, another customer, reminisced about the unique, rich flavor of Hot&Cold’s tea.

“It’s sad. Familiar things eventually change and disappear,” she lamented.

Brian Dang, co-founder of UPWings – F&B Section, likened Hot&Cold to a ‘milk tea monument’ in Ho Chi Minh City.

He recalled his first experience with the brand 14 years ago, at a time when the market was still dominated by names like Hoa Huong Duong, Alo Tra, and -18 Degrees.

He was particularly impressed with Hot&Cold’s striking packaging and brand identity.

However, as the milk tea market matured, competition intensified with the arrival of major players like Gong Cha, Koi Thé, R&B, Heekca, Royal Tea, and Phuc Long.

Consumers began to seek more than just flavor—they valued brand identity, sourcing transparency, and the overall experience.

Milk tea swiftly became a daily habit of office workers in the city, who enjoyed sipping on their favorite drink while working.

Dang expressed regret over the closure but remained hopeful.

“This could be a chance for Hot&Cold to restructure and make a comeback with a fresh identity. I look forward to seeing a new version of the brand in the future,” he said.

Shifting consumer habits, rise of budget drinks

Despite Vietnam’s beverage industry generating a record VND118 trillion (US$4.5 billion) in 2024, equivalent to over VND323 billion ($12.4 million) per day, premium products were no longer driving growth, according to a recent report by tech firm iPOS.

Instead, budget-friendly options gained popularity last year.

A 2024 survey of some 4,500 consumers in Hanoi and Ho Chi Minh City found a noticeable decline in spending on higher-priced drinks.

These consumers cut back on beverages priced at VND35,000-50,000 ($1.3-1.9), while there was a sharp rise in coffee and milk tea fetching VND21,000-35,000 ($0.8-1.3), which accounted for 40 percent of the purchases in 2024.

The high-end segment, priced above VND70,000 ($2.7), saw a significant drop in demand.

Only 5.1 percent of the respondents were willing to spend at that level, down from 7.3 percent the previous year.

This shift has forced many premium drink brands to increase promotions to retain customers.