The landlord of 11-13 Han Thuyen, District 1, Ho Chi Minh City, is reportedly looking to re-lease the property after the previous tenant, Starbucks Vietnam, announced their departure from the premises as of August 26, 2024. The decision is said to be due to unsuccessful contract renewal negotiations.
Currently, the landlord is advertising the space for lease at a rate of 30,000 USD per month, approximately 757 million VND per month, or 9 billion VND per year, which represents an increase of over 600 million VND annually compared to the previous rental rate.
“The new tenant can take possession of the property from September and will be offered one month’s free rent to prepare and renovate the new store. For a five-year lease, the tenant is required to pay a three-month deposit, and for a ten-year lease, a six-month deposit,” according to the broker.
Image: New listing on Batdongsan.com
The Starbucks Reserve store, which first opened its doors in 2017, was the first and only Reserve store in Ho Chi Minh City at the time and one of two Reserve stores in Vietnam, with the other located on Nha Tho Street in Hanoi. This unique Starbucks concept specializes in serving rare and exclusive coffee beans from around the world.
Over the past seven years, Starbucks Reserve Han Thuyen has become a favorite destination for many, offering unique beverages, expert barista skills, a central location, and aesthetically pleasing views. Thus, the announcement of its closure has sparked sentiments of dismay among regular patrons and netizens alike.
“After careful consideration of various factors, we regret to announce that the Starbucks Reserve Han Thuyen store will officially cease operations on August 26. However, every ending marks a new beginning, and Starbucks Reserve will soon reopen at a different location, promising to deliver even more extraordinary experiences,” shared Starbucks Vietnam.
Like many businesses, Starbucks has faced challenges in the post-Covid-19 era, including economic downturns and rising rental costs. According to data from Vietdata, the chain experienced a significant increase in revenue, with an 87% surge in 2022 and a 28% rise in 2023, amounting to over 1,300 billion VND. However, Starbucks Vietnam’s net profit in 2023 was impacted by fluctuating raw material prices, resulting in lower profit margins for new stores.
Starbucks Vietnam has also recently appointed a new General Director, Mr. Ho Mai Ho, who succeeds Ms. Patricia Marques, a pivotal figure in the brand’s early days in the country.
