Revenue down 50%
At 6pm, it was getting dark in the busiest drinking area in Ho Chi Minh City, located on Vinh Khanh Street (District 4). In a moment, the lights and signs of the drinking establishments were lit up. The sound of staff clearing tables, chairs, and beer and wine being placed on the tables waiting for customers made people feel excited.
Many pubs on Vinh Khanh Street have seen a 50% decrease in customers compared to before (Photo: Nguyen Vy).
Despite the cleaning, for several hours, only a few customers came and went. The bustling scene did not appear until nearly 9pm, a stark contrast to the bustling atmosphere from afternoon to night that had become familiar in this neighborhood.
Along the route, many pubs that used to be the most popular places are now closed because the owners could not survive and had to quit their jobs or return the premises, moving to a more "breathable" place.
Many shops have had their premises returned and moved elsewhere (Photo: Nguyen Vy).
Mr. Hien (51 years old) used to be the owner of a restaurant of more than 30 square meters on Vinh Khanh Street. But after the Covid-19 pandemic, he had to return the premises because he could not bear the costs. He agreed to move the restaurant to a location on Vinh Khanh Street, but the premises were small, only 10 square meters. The revenue from several million VND/day is now only 500,000 VND.
"Revenue has dropped by more than 50%. I have been in business here for 33 years, this is the first time I have seen such a decrease in the number of customers. Before, my restaurant was full of customers, waiting in long lines to buy food, now I only have occasional customers. This is the common situation of most pubs, even though it is the end of the year, with many parties, festivals, and meetings. Even large, famous pubs are on the "brink", Mr. Hien said bitterly.
Mr. Hien is fed up with the difficult business situation (Photo: Nguyen Vy).
Not far away, nearly 10 employees at Lang restaurant were also sitting idle, scrolling through their phones because there were no customers coming in. Previously, this restaurant had 3 locations next to each other, and was one of the largest and most popular restaurants on Vinh Khanh Street. Last April, the restaurant owner had to give up one location because the number of customers had dropped by more than half.
Ms. Uyen (30 years old, manager of Lang restaurant) said that the difficult business situation has lasted from the beginning of 2023 until now.
"This year, the unemployment rate is high, so most of the customers at the restaurant have to tighten their spending. Because of the economic difficulties, people also limit going out to drink, for fear of having to spend more money to book a motorbike taxi home," said Ms. Uyen.
Many ways to retain customers
30 minutes after the lights came on, a few pubs on the food street began to have customers. At An An, the owner, Mrs. T., was still sad as all the tables and chairs were empty.
"My restaurant used to attract customers late at night, but recently, the time for customers to come to the restaurant has become even later, and the number of customers has also decreased significantly. Before, our restaurant was open until dawn, closing at 4am to try to earn more money. Now, even if we stay open until 6am, it's not good. Customers from the bars who used to come for late night meals and breakfast are no longer there," said Ms. T.
The pub was "record" empty even though it was past closing time and dinner time (Photo: Nguyen Vy).
Pointing to the opposite pub, Ms. T. said that her "rival" used to be packed with customers, the pub was always bustling and lively, but now only has a few people.
To try to "brace" through this difficult time, Mr. Hien said that his restaurant has not increased prices for the past 3 years, even though all expenses are higher than before. From 6 employees, Mr. Hien's restaurant has reduced to only 2 people.
"Accept a little less profit to keep customers. Now without increasing the price, the business is still unsold like this. If we increase the price any more, we will have to close the shop," the shop owner lamented.
The manager of Lang restaurant also said that from now until Lunar New Year, he plans to launch many promotional programs or at least not increase food prices to retain customers.
Hands-free staff sitting playing with their phones while waiting for customers (Photo: Nguyen Vy).
According to Saigon Beer - Alcohol - Beverage Corporation (Sabeco), the company's revenue in the first 9 months of 2023 decreased by 12% compared to the same period in 2022, of which after-tax profit decreased by nearly 26%.
Hanoi Beer - Alcohol - Beverage Corporation (Habeco) also recorded a 6.3% decrease in revenue in the first 9 months of the year compared to the same period in 2022, and a nearly 39% decrease in after-tax profit.
Previously, at the workshop "Proposing comments on the draft Law on Special Consumption Tax (amended)" in July 2023, Mr. Nguyen Van Viet, Chairman of the Vietnam Beer - Alcohol - Beverage Association (VBA), commented that the beverage industry is facing difficulties and challenges, especially after Covid-19 as well as the impact of Decree 100 (tightening control of alcohol concentration for drivers). Meanwhile, demand has decreased, while input material prices have increased by 50-60%.
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