The Coffee House said its business model was not "appropriate" and does not meet "customers’ demand," and "business results are not as expected."

Ten Ren’s 23 stores in Ho Chi Minh City and the neighboring Dong Nai Province will close on August 15, according to a statement issued Monday.

Ten Ren was launched in November 2017, and the plan was to open 40 stores by the end of last year, but that did not happen. The brand came to Vietnam at a time when a large number of rivals were already in the market.

The number of milk tea stores reached 2,000 last year, with a new one opening every four days, according to the Vietnam Association of Small and Medium Enterprises.

Around 30 major brands are operating in Vietnam and competing for a slice of the $282 million dollar market, according to British research firm Euromonitor International.

Milk tea is popular among youths. A survey by market research firm Nielsen last year found 81 percent of Gen Z (birth years from 1990s to mid-2000s) in Vietnam saying they enjoyed going to a bubble tea store in their free time.