Vietnamese people have drastically reduced their number of cafes.

The Vietnam Food and Beverage (F&B) Industry Report recently published 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 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%.

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 had closed, with the number of new openings somewhat limited.

Previously, Mibrand's report showed that the whole country currently has more than 500,000 coffee shops, from small shops in alleys to large ones. coffee chain modern. While iPOS.vn's report only counts F&B stores, not the cart model.

By the end of June, the country recorded about 304,700 food and beverage outlets.

The survey shows that Ho Chi Minh City is the area most heavily affected with a decrease of up to 6% in the number of stores across the city. In Hanoi , the number of stores has seen 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 In addition, some branches in Hanoi and Ho Chi Minh City of this coffee chain have also quietly withdrawn from the market.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 difficulties have 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.

Consumers also reduced the frequency of going to cafes due to increased work pressure. Accordingly, up to 41.7% of respondents only occasionally go to cafes, and 32.3% go to cafes 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 in developing their businesses. In the second half of the year, 60% of businesses participating in the survey said that they only tried to maintain the current business scale, while only more than 34% planned to expand to new facilities. Compared to the same period in 2023, the number of F&B businesses have similar ambitions up to nearly 52%.

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