"Great purge" of F&B industry: More than 50,000 stores disappeared after half a year

(Dan Tri) - Experts and market surveys say this "cutback" could be a necessary step for the industry to recover sustainably.

In the first half of 2025 alone, more than 50,000 food and beverage outlets across the country closed, creating a major cleanup in the Vietnamese F&B industry, according to a recent report by iPOS.vn.

According to the report, the total number of points of sale nationwide is currently about 299,900, down about 7.1% compared to the end of 2024. Although the industry's total revenue still increased slightly, estimated at about 406,100 billion VND in the first 6 months of 2025, the decrease in the number of stores shows that competitive pressure and costs are forcing many business owners to close or restructure their operations.

Dodo Pizza chain announced to close all locations in Ho Chi Minh City from May 26 (Photo: DT).

The first wave of closures was driven by rising operating costs. Prices for raw materials, rent, and labor all climbed, forcing about 45% of businesses to raise prices in the first half of the year. Price increases, common in the mass and mid-range segments, may help offset costs but also reduce the purchasing power of price-sensitive customers.

Second is fierce competition and the “open fast - close fast” model. Many small stores experiment with business models for a few months but do not have enough capital or strategy to survive long term.

The report also shows that brands that optimize operations, leverage sales technology and improve customer experience continue to grow. Conversely, those that are slow to innovate are gradually being eliminated from the game.

Specific examples in the Ho Chi Minh City market further clarify this trend. The Dodo Pizza chain announced that it would close all of its locations in Ho Chi Minh City from May 26 and will shift its strategy to small and medium-sized cities, where costs are lower and competition is less.

In addition, big brands like Starbucks also show a restructuring trend. After some branches closed in their old locations, the company focused on reopening at “golden” locations with a more premium model (Starbucks Reserve), to strengthen its image and profit margin instead of covering up massively.

Experts and market surveys say this “cutback” could be a necessary step for the industry to recover sustainably. Businesses that survive this wave of screening often have better management models, take advantage of digitalization, control costs and focus on customer experience. Some chains also shift to exploiting the provincial market, where space costs and competition are lower.

Source: https://dantri.com.vn/kinh-doanh/dai-thanh-loc-nganh-fb-hon-50000-cua-hang-bien-mat-sau-nua-nam-20251015105159264.htm