The Vietnam Food and Beverage (F&B) Industry Report recently released by the IPos.vn platform recorded remarkable figures on the business situation of enterprises and stores in the industry. The amount of spending on going to coffee shops has decreased sharply, the frequency has also decreased significantly; the percentage of people spending over 100,000 VND/cup of water has decreased sharply from 6% to 1.7%.
By the end of June, the country recorded about 304,700 restaurants, down 4% compared to the same period last year. At least 30,000 restaurants have closed, and the number of new openings is somewhat limited.
Previously, Mibrand's report showed that the country currently has more than 500,000 coffee shops, from small shops in alleys to large restaurants. coffee chain modern. While iPOS.vn's report only counts F&B stores, not the cart model.
The survey showed that Ho Chi Minh City was the most affected area with a decrease of up to 6% in the number of stores across the city. In Hanoi, the number of stores achieved a slight growth of about 0.1%. The number of stores with short lifespans (closing after less than 3 months of operation) is happening more in the big city
Several F&B giants have also announced the closure of their branches recently. The Coffee House chain has closed its doors in Can Tho after more than 5 years of operation. This chain also plans to close all stores in Da Nang after more than 7 years of operation. In addition, some branches in Hanoi and Ho Chi Minh City of this coffee chain have also quietly withdrawn from the market.
The first Starbucks Reserve store in the center of District 1, Ho Chi Minh City has just announced its closure after 7 years of operation.
Data shows that, despite the decrease in the number of stores, the industry's total revenue still reached more than VND400,000 billion, equivalent to 68% of the revenue for the whole year of 2023. "The reason is partly due to inflation, with the consumer price index (CPI) increasing by 4.08% over the same period last year, core inflation increasing by 2.75%. Stores offer many programs promotion "stimulate demand," said an IPos representative.
Notably, the economic downturn has not affected Vietnamese people's eating out too much. The group of customers eating out daily, 1-2 times/week or 3-4 times/week has increased compared to the same period last year. However, the amount spent on going to cafes has decreased sharply, the frequency has also decreased significantly; the percentage of people spending over 100,000 VND/cup of water has decreased sharply from 6% to 1.7%. The mid-range price of 41,000 - 70,000 VND/cup of water has become more popular.
Consumer also reduced the frequency of going to coffee shops due to increased work pressure. Accordingly, up to 41.7% of respondents only occasionally go to coffee shops, and 32.3% go to coffee shops with a frequency of 1-2 times/week. Economic difficulties have forced consumers to consider more carefully when spending on non-essential services.
According to the report, businesses are also increasingly cautious about expanding their business. In the second half of the year, 60% of businesses participating in the survey said they were only trying to maintain their current business scale, while just over 34% planned to expand to new facilities. Compared to the same period in 2023, the number of F&B business have similar ambitions of up to nearly 52%.
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