As announced on the Starbucks Vietnam fanpage, the Starbucks Reserve Han Thuyen store, the brand’s only specialty coffee shop in Ho Chi Minh City, closed its doors on August 26th, 2024, after seven years of operation. The night before, on August 25th, loyal customers and newcomers alike flocked to the store to bid farewell over a final cup of coffee…
How much is the rent for the Starbucks Han Thuyen location?
Starbucks Han Thuyen has been operating since 2017. It is not only the sole location in Ho Chi Minh City that offers table service for specialty coffee and a unique experience, but it also boasts a prime location in the heart of District 1, with views of the September 30th Park and proximity to the Saigon Notre-Dame Basilica, Independence Palace, and the Book Street.
The 11-13 Han Thuyen property, which Starbucks occupied for seven years, is estimated to be worth around VND 600 billion, with a recent rent adjustment to USD 3,000 per month. (Photo: TL)
In addition to table service, the Reserve Han Thuyen store featured mostly staff in black aprons, known as “Coffee Masters,” experts in coffee according to the company’s internal training program. In contrast, most other Starbucks stores have staff wearing green aprons, indicating they are standard baristas.
The decision by this American coffee giant to close the Starbucks Reserve Han Thuyen store came as a surprise to many, and longtime customers who have patronized the store for seven years expressed their disappointment. In its closure announcement, Starbucks stated that after carefully considering various factors, the Starbucks Reserve Han Thuyen store regrettably had to cease operations on August 26th but assured that this concept would return soon at a different location.
Vinh Thong, a regular customer at this store, shared that in recent years, aside from work and social gatherings, he spent most of his time either at home or at the Reserve Han Thuyen store. He felt a sense of loss with the store’s closure.
“I don’t remember exactly when I first started coming to this store, but it had everything I needed—a central location, proximity to my office, and a suitable space for both work and hosting guests, not to mention the perception of it being upscale,”
Vinh Thong shared.
Immediately after the announcement, real estate broker forums and groups were abuzz with discussions about Starbucks being unable to agree on rental terms with the property owner.
The 11-13 Han Thuyen property has a total area of 212.5 square meters, featuring a ground floor and two upper floors, with an 8.5-meter-long facade. It was immediately put up for rent at VND 757 million per month, equivalent to nearly VND 9 billion per year.
The new tenant will be given one month of free rent for renovations and can take possession of the property starting in September. The security deposit is three or six months’ rent, depending on whether a five-year or ten-year lease is signed.
A distinctive feature of the Reserve Han Thuyen store was its table service and staff in black aprons, known as “Coffee Masters.” (Photo: Starbucks)
According to shared information, Starbucks Vietnam initially rented the Han Thuyen property for USD 21,000 per month (over VND 520 million). When it came time to renew the contract, the landlord wanted to increase the rent to USD 30,000 per month. Unable to negotiate a new rate, the company decided to vacate the premises.
It wasn’t just the rent increase that factored into the decision; according to Starbucks employees, the old building also needed upgrades if the branch were to continue operating there. Renovating and upgrading the building would have incurred significant costs as well.
Several Starbucks stores in District 1 have closed their doors
In reality, Reserve Han Thuyen is not the first Starbucks store to close in the 11 years since the company entered the Ho Chi Minh City market. Quite a few prime locations in the center of District 1, where the chain first established its presence in Vietnam, are no longer operational.
In 2021, fans of the upscale coffee brand bid a sad farewell to the Starbucks store located in the Rex Hotel. This was the third store the chain opened in Vietnam, and it occupied a very prime location within the century-old, five-star hotel, situated at the intersection of Le Thanh Ton and Pasteur streets in District 1.
Several stores in prime “golden” locations in Ho Chi Minh City from the early days of the American coffee chain have ceased operations, including Rex and Dong Du. (Photo: TL)
At the time, a Starbucks Vietnam representative revealed that the reason for the closure was the store’s lack of significant performance, with the COVID-19 pandemic being a contributing factor.
“In the F&B chain business, it’s quite normal to open and close stores, and it’s not a big deal,”
said CEO Patricia Marques of Starbucks Vietnam in a statement to the media.
Prior to that, the Starbucks store at President Place (at the intersection of Nguyen Du and Nam Ky Khoi Nghia streets) in District 1 also quietly ceased operations. This was the second Starbucks store opened after the first one at New World in District 1. When the store opened in 2013, long lines formed, with the cheapest drink costing over VND 50,000. Soon after, Trung Nguyen Legend took over the same location.
Another closure that evoked a sense of loss was the Starbucks store at 38 Dong Du, District 1, which opened in March 2014 and was the chain’s fourth location in Ho Chi Minh City. Before that, the Starbucks store on De Tham Street, also in District 1, had quietly closed its doors, surprising many.
After a period of “burning money” to establish its brand in prime locations, the American coffee chain has shifted its focus to enhancing the customer experience, particularly for local patrons, by opening stores in residential buildings, shopping centers, and other convenient locations. (Photo: TL)
The American coffee chain opened its first store in Vietnam in February 2013 at New World, overlooking the “golden” intersection of Ngã 6 Phù Đổng. Starbucks Vietnam’s initial strategy involved choosing prime locations to create a unique customer experience.
However, after a few years of “burning money” to establish its brand in these prime locations, the chain had gained a strong foothold among local customers and shifted its focus to this segment.
It is evident that the majority of Starbucks stores in Ho Chi Minh City are now located in commercial centers, office buildings, and upscale residential areas, catering to on-site customers rather than tourists, as was the initial focus.
The districts with the highest concentration of Starbucks stores are District 1, District 7, and Thu Duc City, where large shopping centers like Vincom Dong Khoi, Landmark 81, Emart, Panorama, and Lotte Nam Saigon are located.
Including the recently closed Reserve Han Thuyen store, the American coffee brand now has 115 stores in Vietnam after 11 years in the market. Ho Chi Minh City, where Starbucks first entered the Vietnamese market, continues to have the highest number of stores, accounting for more than 30% of the total.
Nowadays, Starbucks Vietnam is not only selling in stores but also expanding its online presence through delivery platforms like ShopeeFood and Grab. Notably, the brand has also launched an online store on e-commerce platforms and its fan page, offering various promotional programs and discounts on accompanying products like cups, water bottles, and bags.
In 2023, Starbucks Vietnam announced a new CEO, Mr. Ho Mai Ho, who replaced Ms. Patricia Marques, the company’s leader for the previous ten years, including its early days in Vietnam. Mr. Ho Mai Ho is also the first Vietnamese CEO of Starbucks.
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