Over 30,000 Vietnam food and beverage stores shut down in the first half of 2024 as consumers cut down on visits to cafes, a company that consults the industry said.
There were 304,700 food and beverage outlets as of June-end, down 3.9% from the end of last year, iPOS said in a report.
There was a surge in the number of Vietnam F&B stores that shut within three months of opening, especially in large cities, according to the company’s CEO, Vu Thanh Hung.
Even well-established brands with a loyal customer base took a hit due to the economic downturn. “The F&B industry experienced six challenging months. Many businesses had to leave the market.”
Yet the industry’s revenues climbed to VND409.90 trillion (US$16.44 billion), or two thirds of that of full-year 2023.
iPOS attributed this to the 4.08% inflation and surfeit of promotions offered by the F&B industry. Its survey of over 2,300 consumers in Hanoi and HCMC found only 1.7% willing to spend more than VND100,000 on a drink, compared to 6% in the same period last year.
A survey of 951 stores in Hanoi and HCMC found that only a third of them plan to expand. Last year the ratio had been more than half.
By Dat Nguyen