Banh Mi Ma Hai is a popular Vietnamese street food, especially in Ho Chi Minh City. The unique combination of a crispy baguette, chewy fish cake, and a sauce that balances salty, sweet, sour, and spicy flavors, along with refreshing cucumber and fragrant herbs, makes it a favorite among locals. Founded by Ho Duc Hai and his partner, Doan Van Minh Nhut, the brand has become a household name, with the founders even appearing on Shark Tank Vietnam to pitch their business.
In a recent interview on the Rising Vietnam YouTube channel, Doan Van Minh Nhut shared the challenges he faced during the early days of building the Banh Mi Ma Hai brand. Coming from a family with a tradition of selling bánh mì, Nhut started helping his mother sell the sandwiches during his middle and high school years. The memories of his mother’s bakery and the alluring aroma of freshly baked bread inspired him to team up with his partner to create a brand that would represent Vietnam’s beloved street food.
One of the initial challenges Nhut faced was opposition from his family, who believed that selling bánh mì did not require a university education. However, he was determined to pursue his passion and believed that if he couldn’t convince his loved ones, he wouldn’t be able to win over millions of customers. Another obstacle was his young age and lack of experience, as he was still a student when he started the business. Despite his family’s tradition in the industry, he soon realized that he lacked culinary knowledge and expertise.
Doan Van Minh Nhut, co-founder of Banh Mi Ma Hai, shares his entrepreneurial journey.
Fortunately, during these challenging times, Nhut and his partner received mentorship from several experienced individuals, which helped them refine their business model and standardize their products. This led to the creation of Banh Mi Ma Hai’s signature flavor, which has since become a beloved staple for many customers.
When Banh Mi Ma Hai first started in 2013-2014, they were among the pioneers in popularizing fish cake baguettes in Ho Chi Minh City. However, within a year, numerous competitors entered the market, presenting the young entrepreneurs with their third major challenge. Nhut expressed the importance of maintaining their values and position in the face of increasing competition: “If you don’t hold on to your values and position, someone else will take your place.”
With their initial sales point strategically located near the University of Economics Ho Chi Minh City, they quickly gained a loyal customer base among the students and faculty. In just three hours each morning, Nhut and his team could sell up to 300 baguettes. As the business expanded, they opened another sales point that sold an impressive 600 baguettes in three hours, requiring a team of eight people.
Nhut attributed their successful start to several factors: the dynamic Ho Chi Minh City market, where consumers are open to trying new products and services; their access to fresh fish cakes from Vung Tau; and their commitment to quality and service, including providing complimentary wet wipes and toothpicks, ensuring a professional appearance with uniforms, and maintaining food safety and hygiene standards.
The allure of Banh Mi Ma Hai lies in two key factors. Firstly, the chewy fish cake and the unique sauce, complemented by the refreshing cucumber and fragrant herbs, create an irresistible flavor profile. Secondly, the brand evokes emotions and connects with the community, evoking fond memories for many customers.
Starting a Business with Just $2 Million VND
Nhut revealed that when he started his entrepreneurial journey, he had just over 2 million VND ($85). Instead of buying a brand-new baguette cart, he purchased a used cart for over 1 million VND and modified it for selling bánh mì.
Despite the humble beginnings, Banh Mi Ma Hai has now expanded to over 1,000 partners through their franchise model and is present in all three regions of Vietnam, covering more than 40 provinces, over a decade of development.
Doan Van Minh Nhut, the young and ambitious co-founder of Banh Mi Ma Hai.
When expanding to the North, Nhut faced a setback due to differences in taste preferences. He shared that people in Hanoi tend to prefer less spicy and less flavorful dishes compared to those in Ho Chi Minh City. To address this, they adjusted their recipe to suit the local palate, ensuring that their product would be well-received by Northern consumers.
Regarding their successful franchise model, Nhut admitted that when they first established the brand, they didn’t consider franchising. Their primary focus was on delivering the best product to their customers, and he wanted to maintain control over every aspect of the business. However, as the business grew to nearly 40 sales points, managing a large number of part-time employees became challenging.
Nhut realized that if they continued to expand, the management costs would become cumbersome, and his management capacity had limits. So, he and his partner decided to develop a detailed and comprehensive franchise model that would ensure the consistency of their signature flavor across all locations.
Key Considerations for a Successful Franchise Model
When franchising street food, especially bánh mì, Nhut emphasized the importance of choosing a location with high foot traffic, preferably in areas with a dense population, near schools, or office buildings. It is crucial to first understand the market and the product thoroughly. In the highly competitive street food industry, knowing your brand, the ins and outs of your franchise model, your brand’s history, and the experiences of your customers are key factors in determining the success of your franchise model.
Nhut shared that before the COVID-19 pandemic, the full franchise package for Banh Mi Ma Hai was around 20 million VND. However, after the pandemic, they adjusted the package to support those affected by the economic downturn. They streamlined the package, reducing it to just over 7.5 million VND, by removing certain services like on-site location surveys and replacing them with online training sessions. They called this initiative “an sinh lập nghiệp,” reflecting their commitment to positively impact those struggling after the pandemic.
Nhut also highlighted the importance of market research from the perspective of the business owner. By empathizing with customers and understanding their pain points, business owners can develop effective solutions. Additionally, ensuring consistency in the brand’s image, service, and quality across all franchise locations is essential to maintaining a successful franchise model.
Source: Youtube Rising Vietnam
