Starbucks closes third Vietnam outlet
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Starbucks Vietnam will close its Hanoi outlet after eight years, following the closure of two locations in Vietnam last year. The Starbucks Lan Vien outlet in Hoan Kiem District will operate until June 30, the company said in a Facebook post. Last year, the coffee chain had closed another outlet in Hoan Kiem District and one in Ho Chi Minh City’s District 1.
Patricia Marques, CEO of Starbucks Vietnam, said earlier this year that the company was finding it challenging to expand the number of outlets in Vietnam due to difficulties in negotiating rent prices.
The company, however, will continue to expand in Vietnam by focusing on new urban areas where there is a lack of services, she added.
She also said that in central districts, Starbucks has observed that customers tended to order more takeaways, so it was considering opening small takeaway outlets where customers can pick up their drink right away.
Starbucks has 78 outlets nationwide, while its competitor Highlands Coffee’s has 500 and The Coffee House has 156.
The Covid-19 pandemic has forced several food and beverage chains to close outlets amid plunging revenue.
The Coffee House closed over 20 outlets last year, while Soya Garden shut down its last one in HCMC. Soya Garden still has eight outlets in Hanoi.
Questions & Answers
Q.Which specific Starbucks outlet is closing in Hanoi?
Which specific Starbucks outlet is closing in Hanoi?
The Starbucks Lan Vien outlet in Hoan Kiem District is set to close. It will operate until June 30.
Q.What is the primary reason Starbucks Vietnam finds it challenging to expand its number of outlets?
What is the primary reason Starbucks Vietnam finds it challenging to expand its number of outlets?
The company CEO, Patricia Marques, stated that difficulties in negotiating rent prices are making it challenging to expand the number of outlets.
Q.How does Starbucks plan to continue expanding in Vietnam despite current challenges?
How does Starbucks plan to continue expanding in Vietnam despite current challenges?
Starbucks plans to focus on new urban areas lacking services and is considering opening small takeaway outlets in central districts where customers prefer takeaways.
Q.How many outlets do Starbucks' main competitors, Highlands Coffee and The Coffee House, have in Vietnam?
How many outlets do Starbucks' main competitors, Highlands Coffee and The Coffee House, have in Vietnam?
Highlands Coffee has 500 outlets nationwide, and The Coffee House operates 156 outlets across Vietnam.
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