On August 18, the Starbucks Vietnam fanpage suddenly announced that the Starbucks Reserve Han Thuyen store in District 1, Ho Chi Minh City, will officially cease operations from August 26, 2024, after careful consideration by Starbucks.
“The end will be a new beginning, and Starbucks Reserve will soon return at a different location, promising to bring you even better experiences,” the announcement read.
Starbucks Reserve Han Thuyen is the only store in Ho Chi Minh City implemented according to the Reserve model of Starbucks. In Vietnam, the first and only other Starbucks Reserve store is located on Nha Tho Street, Hoan Kiem District, Hanoi. With this model, Starbucks offers a more premium experience to coffee connoisseurs with rare and exotic beans sourced from around the world and crafted with various brewing methods.
For Ho Chi Minh City, Starbucks Reserve Han Thuyen can be considered a “legendary” and iconic store, alongside Starbucks New World – the first Starbucks store in Vietnam that marked the beginning of their journey in the country.
The impact of Starbucks Reserve Han Thuyen is evident in the comments below the announcement post. Many social media users expressed their sadness over the closure of a well-located store with high-quality drinks, with some even praising the store for having the best Nitro Cold Brew in Saigon. Within almost a day of posting, the announcement received 4,500 interactions, 1,600 comments, and nearly 300 shares.
Why did this iconic and beloved store, which seemed to be doing well, suddenly cease operations?
According to some opinions on social media, the decision to close Starbucks Reserve Han Thuyen could be due to the significant increase in rent for the premises. Some information sources revealed that the rent for this location exceeded 750 million VND per month. However, experts believe that the decision was influenced by multiple factors.
“Closing iconic locations, especially premium concepts like Reserve, will always have a negative impact on the brand. However, in this case, I believe it is a suitable and timely decision,” said F&B expert Nguyen Thai Binh, COO of HT House – a company that manages and develops mid-range and high-end restaurant chains.
According to Mr. Binh’s analysis, after seven years of operation, Starbucks Reserve Han Thuyen needed renovation and refurbishment due to the deterioration of its physical structure, which would incur significant costs. Especially since it is a premium concept, the renovation costs would be higher compared to a standard store.
Coincidentally, the lease agreement for the premises also came to an end. The expert assessed that the store’s business efficiency could not improve. A similar case occurred with Starbucks Rex Hotel, also located in one of the most prime locations in Ho Chi Minh City. Before closing in October 2021, Starbucks Rex Hotel was considered the most luxurious Starbucks store at that time.
“When the macroeconomic situation declines and customers tighten their spending, to operate more than 100 stores nationwide, Starbucks needs to maintain a healthy cash flow. Therefore, cutting losses on unprofitable stores is necessary,” said Mr. Binh, adding that Starbucks Reserve Han Thuyen will still retain its loyal customer base even after closing.
The “Legendary” Starbucks Store in Ho Chi Minh City Shuts Down Despite Its Popularity and Buzz
Many loyal patrons were taken aback and left feeling a sense of loss when Starbucks shuttered its beloved location.
Why Did Starbucks Suddenly Close One of Its Two Most Premium Outlets in Vietnam?
Starbucks has announced the closure of its iconic Reserve Han Thuyen store in District 1, Ho Chi Minh City, bringing an end to its seven-year legacy. This luxurious coffee haven has been a beloved staple for many locals and a true legend in the city’s coffee scene.
