Yellow Cab Pizza Vietnam to open in suburb district

The Philippines’ Yellow Cab Pizza is about to open its first restaurant in Vietnam.

The chain, owned by Max’s Group, which is rolling out franchised eateries across Southeast Asia, will launch in Ho Chi Minh City.

But instead of debuting in the CBD suburb, District 1, as most international brands have traditionally done, Yellow Cab Vietnam has chosen the suburban area of Hau Giang street in District 6.

Rapidly rising retail rents in District 1 are the most likely reason for the location chosen. While it is attractive to open the first store in District 1, the rent is now likely to cost as much as four times that of neighbouring districts.

Good locations are becoming increasingly rare with so many international and local brands competing for the same space. However, it is expected that Yellow Cab will open in the CBD once it has tested its model and offer on Vietnamese consumers.

“When F&B chains enter Vietnam, they will enter with multiple unit commitment, so eventually they must have stores outside of District 1,” commented Sean Ngo, CEO of VF Franchise Consulting.

He said in District 6, there would be less competition from similar products and services in these non-central districts, and providing brands like Yellow Cab more opportunities in their early days in the city.

Yellow Cab Vietnam will open 12 stores in the country within five years under a partnership between Max’s Group and Blue Star Food Vietnam.