How expensive is the McDonald's premises in District 1?

Recently, McDonald's Vietnam - the fast food chain - announced the closure of McDonald's Ben Thanh branch from September 19. This is one of the first and longest-standing stores of the chain in Vietnam.

McDonald's Ben Thanh is located at 2-2A Tran Hung Dao, Pham Ngu Lao Ward, District 1, Ho Chi Minh City.

This is a 3-storey restaurant open 24 hours, built with a total area of ​​nearly 660 m2, capacity of about 260 seats (180 seats inside the restaurant and 80 seats outdoors) with a view of the green space of 23/9 Park.

Although McDonald's did not announce the reason for closing this long-standing branch in Vietnam, according to many analysts, it may be due to consumers tightening their spending due to economic difficulties while rental prices have increased sharply.

McDonald's Ben Thanh branch (District 1, HCMC)

Specifically, according to a report by the website batdongsan.com.vn, the price of premises in this area has increased by nearly 16% over the past year. The average rental price is about 183 million VND/month.

Talking to us, a broker specializing in leasing premises in Pham Ngu Lao ward said that the McDonald's is estimated to cost around 14,000 - 15,000 USD/year (around 350 million VND), with a contract signed annually. This price is 15-20% higher than previous years.

After the news that McDonald's returned the premises, many famous brands in the F&B field such as the F&B chain HL are asking to rent it back.

"There are many rental properties in this area, with different prices, from 50 million VND to 300 million VND depending on the area and location. However, the prime locations in this area, despite their high prices, are still of great interest to many customers thanks to the frequent tourists who come and go," said this broker.

According to this broker, the rental prices of premises around Ben Thanh market, although no one has rented them for a long time, have not decreased, and have even increased. For example, a premises only 5m wide and 20m deep on Le Loi street has a rental price of more than 12,000 USD/month (approximately 300 million VND).

McDonald's once said it would open 100 stores in Vietnam within the next decade, but so far McDonald's only has 36 stores in several large cities and provinces such as Ho Chi Minh City, Hanoi, Binh Duong, Khanh Hoa...

Also related to the rental premises, recently, on social networks, there was a stir about the information that designer Quach Thai Cong, General Director of Thai Cong Vietnam Co., Ltd., returned the premises at 66-68 Tran Hung Dao (District 1, Ho Chi Minh City) and many brokers posted it for re-rent at the price of 45,000 USD/month (more than 1.1 billion VND). The building has an area of ​​more than 1,400m2, with a structure of one ground floor and 7 upper floors. The lease term is 5-10 years, with a deposit of 3 months and payment every 3 months.

However, speaking with a reporter from Nguoi Lao Dong Newspaper, a representative of Thai Cong denied the above information.

Designer Thai Cong's company headquarters is being advertised for rent on social networks.

Source: https://nld.com.vn/mat-bang-mcdonalds-sap-tra-tai-quan-1-dat-co-nao-196240917093322782.htm