Food courts move to suburbs

The districts of Tan Phu and Binh Tan in HCM City in the last three years have seen the population grow three times faster than central districts. 

The crowded food courts in Aeon Mall demonstrate the need for affordable food instead of traditional food markets.

A Food Square is set up in Tan Phu District. Covering an area of 1,500 square meters, much larger than other food courts, and having 70 stalls, the café & food complex opens from 7 am to 11 pm daily. The rent is VND12 million a month for one stall. 

“As investors flock to the central business areas, the retail premises rent is increasing, thus leading to higher investment rates, stiffer competition and higher risks,” said Nguyen Cao Ky Chuong, director of Food Square. “Moving to the suburbs is a safer investment.”

Food Square mostly targets famous long-lasting traditional food brands (sweetened porridge, Hue dishes or local food), well-known brands in the market (for example Phuc Long and The Coffee House), and startups.

“With average monthly income of VND7.5 million, young customers under 30 are willing to pay VND30,000-50,000 for one dish,” Chuong said when explaining why he is confident about Food Square’s performance in the area.

A survey by Grant Thornton Vietnam showed that food & beverage is one of the two business fields that most attract domestic and foreign investment.

At least 10 foreign food brands from the Republic of Korea, Thailand, Japan and the US have developed chains in HCM City. There are also hundreds of thousands of shops selling local specialties. 

The dense concentration of food shops has led to a scarcity of retail premises in advantageous positions. 

As a result, investors have to move their shops to other locations, including the top floor of apartment buildings and basements. 

Asian Town, a food court and Sense Market, a shopping center, have emerged under the B Block of 23/9 Park. 

At shopping malls, food courts are crowded, but the rent is high. At Vincom Dong Khoi, the rent is US$6,000 a month for 150 square meters and US$1,200 for a mini 3 square meter kiosk.