From "big guys" to "small guys" closing down one by one
In recent days, many coffee lovers in Ho Chi Minh City have regretfully seen the PhinDeli coffee shop at the corner of Cong Truong Quoc Te (opposite Con Rua Lake) closed. Located in a prime location with a large area, the design space has a spacious and airy outdoor seating area, so PhinDeli is a familiar meeting place for office workers, often crowded. On the official information page, this brand confirmed that from May 23, it has moved to a new business location, after nearly 2 years of operating here.
Previously, PhinDeli shops at the Nguyen Du - Dong Khoi intersection with a direct view of Notre Dame Cathedral and at the Phu Dong roundabout had to give up their premises, causing many people to express concern about the "survival ability" of the coffee chain belonging to Nova F&B (NovaGroup). In the same group, Saigon Casa Cafe brand also followed PhinDeli in announcing that it would leave its premises at 7 Pham Ngoc Thach Street from May 23.
PhinDeli Coffee Shop at Turtle Lake is closed after moving premises.
Speaking to Thanh Nien on the morning of June 21, a representative of NovaGroup confirmed that Nova F&B Company, which specializes in providing culinary services at projects developed by NovaGroup, has been acquired by a Singaporean enterprise, and the two sides are completing the final procedures of the deal. Nova F&B's system has 46 stores in operation (mainly in Ho Chi Minh City) with 18 famous brands such as: Saigon Casa, Marina Club, The Dome Dining & Drinks, Dynasty House, PhinDeli, Mojo Boutique Coffee, Carpaccio, Shri Restaurant & Lounge, Tib, JUMBO Seafood, Crystal Jade Palace, Gloria Jean's Coffees, Sushi Tei... A source said that after being acquired by the Singaporean owner, Nova F&B will be managed and operated by IN Hospitality and is expected to be renamed IN Dining. Although NovaGroup affirmed before the deal that the chain of stores and products of Nova F&B were operating quite stably and the resale of Nova F&B was part of the group's overall plan to restructure its business operations, not due to "lack of customers", it is undeniable that the operating situation of restaurant and food services in Ho Chi Minh City is still facing many difficulties.
After PhinDeli at the Nguyen Du - Dong Khoi intersection closed, the "neighbor" coffee shop Mellower Coffee also sent a notice to its loyal customers that it would permanently close in Ho Chi Minh City. This is a famous specialty coffee chain in China, founded in 2011, with more than 50 stores worldwide, opening its first store in Vietnam on Le Duan Street (Ho Chi Minh City) in 2019.
Not only are big coffee brands withdrawing from the race, many small-scale shop owners with much lower premises costs are also facing the threshold of changing ownership. Having just posted on his personal Facebook page an article looking for someone to urgently transfer a coffee shop in Tan Binh District with an area of nearly 100 square meters for 135 million VND, Mr. TT said that in addition to the reason that his family is busy with work and cannot manage, the main reason he transferred the shop was because of a sharp decrease in profits.
"Trying to get through the pandemic, hoping to recover soon, but even though all economic activities have returned to normal for more than a year, business is still very difficult. Regular customers still come to drink coffee every day, but they no longer invite friends to gather as much as before. Or there are people who used to come to buy a cup of coffee or a glass of juice every day before going to work, but now they are unemployed and at home, so they buy coffee to drink themselves, no need to come. In general, it's difficult, but I have a different direction, so I'm transferring it to someone else who has more time to invest and take care of it," Mr. T. shared.
The pub is also miserable.
The economic situation is difficult, before saving money on coffee, many people have almost completely cut down on "eating and drinking", so many restaurants and eateries are facing increasingly difficult times. "With this situation, I will probably have to go back to my hometown, the buffalo goes first, the plow follows later, I can't survive, I'm about to go bankrupt", Mr. H. Minh, the owner of a seafood restaurant in Binh Chanh District, lamented. According to Mr. Minh, now many businesses have cut salaries and bonuses, workers' income has decreased, so people also limit their spending on food and drink. In addition, with the tightening of management according to Decree 100, no one dares to go out to eat and drink anymore. The number of customers at Mr. Minh's restaurant has decreased by 50%.
"My place sells very cheaply but now there are no customers. A few plates of snails, a few bottles of beer, and even a plate of roast pork is only 200,000 - 300,000 VND, but now they stay home and drink, and don't have even a few hundred thousand. Meanwhile, all regulations are strict. Not only Decree 100 but also fire prevention, environment, food hygiene and safety... everything is difficult," he lamented.
Opening a restaurant in District 1 - the city center - so Thanh Dan's goat restaurant still has a steady stream of tourists coming and going to make up for the decrease in regular customers, but Thanh Dan is more miserable than H. Minh because he has to bear the cost of renting a space. Before the pandemic, the rent of 45 million VND/month was not too big of a problem, and Dan's restaurant still made a steady profit. However, since the pandemic, the rent has increased to 50 million VND/month, while customers have decreased a lot, orders have also decreased, revenue has decreased, so income is not enough to cover expenses, and the restaurant is constantly losing money.
From a tourism perspective, Mr. Nguyen Huu Y Yen, General Director of Saigontourist Travel Company, said that in fact, the current tourism industry has gradually stabilized. Entering the peak summer season, the number of domestic visitors to destinations is still "maintaining its form" and the hotel and restaurant system is gradually recovering quite well. However, the phenomenon of hotel chains, restaurants, and eateries facing difficulties due to "lack of customers" is still common in Ho Chi Minh City because the city is not a summer tourism hub. People cut spending, eat out less, and date less. Meanwhile, tourists do not flock to Ho Chi Minh City, but on the contrary, the city is a market that sends tourists to travel everywhere. Summer is the season for domestic tourism but they do not come to Ho Chi Minh City. International visitors are entering the low season, arriving at least from September onwards, so the tourism service infrastructure system is still facing difficulties.
"In the long term, Ho Chi Minh City needs to transform itself into a tourist hub from all over. To do so, the city must form large, attractive entertainment areas. Tourists going to Da Nang have Ba Na Hill, and those going to Phu Quoc have United Center... Ho Chi Minh City only has Dam Sen and Suoi Tien, so it cannot escape the "transit point" label. If there are Universal, Disneyland or large entertainment areas, the restaurant and hotel service system in the summer will be less difficult," said Mr. Nguyen Huu Y Yen.
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