200m, 1 pharmacy!

This morning, while sipping coffee and scrolling through my phone, my eyes accidentally landed on a report on the Vietnamese pharmaceutical market for 2024-2025. When I read that Long Chau had surpassed 2,376 stores nationwide (I checked two weeks ago), I almost choked on my coffee. Turning to my friend sitting next to me, I blurted out, "Wow, do you need to take medicine everywhere you go in our country these days? Pharmacies are popping up like coffee shops!"“

He laughed and said, "Since you're doing the site planning, why don't you take out your toy map and take a look?" So I pulled out the map and examined it. And honestly... it was even more surprising than the 2,376 stores I'd seen earlier.

On the map, the database of pharmacies covers the entire area, from the city center down to the districts and towns. It feels like opening Google Maps to find a Saigon coffee shop; wherever you zoom in, you see the logo. Meanwhile, according to our map statistics, the whole country currently has approximately 19,998 public and private medical facilities, including hospitals, health centers, commune health stations, and clinics.

But interestingly, the major pharmacy chains don't surround the hospital as I had imagined. Around the hospital, most of the medication needs are met by the prescription pharmacy on the hospital grounds and the traditional pharmacy system that has been established for decades near the hospital entrance. This is an extremely competitive area with low profit margins; breaking into it is not easy at all.

Instead of rushing into that red zone, the chains chose a different path. They targeted residential areas, major roads, and new urban areas, where people buy cold and flu medicine, headache medication, vitamins, milk for the elderly, pharmaceutical cosmetics, bandages, etc., as a daily routine. To put it humorously, pharmacies are now following the "CVS model of the healthcare industry.".

Looking at the broader market picture, it becomes clear why the race for pharmacy chains is so intense. According to IQVIA and BMI Research, the Vietnamese pharmaceutical market is estimated to reach approximately US$7.5–8 billion in 2024 and is projected to reach US$10 billion by 2026, with an annual growth rate of around 111 TP3T. While the hospital channel still accounts for the majority of revenue, the retail channel is growing rapidly thanks to the boom in modern pharmacy chains.

The country currently has approximately 60,000 pharmacies (according to the Drug Administration Department - Ministry of Health), but the number of modern chain stores is only around 3,000–3,500, which accounts for only 5–61% of the market. This means the market is still very large, especially in provinces, districts, and towns – where people's incomes are increasing and the demand for healthcare is growing.

In this market, LC is currently the sole player. According to FPT Retail's report, LC has surpassed 2,300 stores and is one of the few chains with significant profits, continuing to expand rapidly. Pharmacity, on the other hand, is downsizing to around 900+ stores to focus on optimizing the efficiency of each sales point. An Khang, owned by The Gioi Dien Dong, is also undergoing a major restructuring, reducing its number of stores to around 300+ from over 500 previously. Several new chains are also entering the market, especially in the Mekong Delta and Southern Vietnam.

Another major boost comes from the amended Pharmacy Law, effective from July 1, 2025. The new law allows the sale of over-the-counter medications via e-commerce, provided there is a physical pharmacy, and officially recognizes the pharmacy chain model as a distinct business type. In short, from 2025 onwards, pharmacies will not only sell at the counter but also through apps, websites, and home delivery – truly an omnichannel approach for the pharmaceutical industry. Looking at the map and the data, I realize that the pharmacy chain game in Vietnam isn't really about "whoever opens more wins," but rather about who understands the market better and chooses the right benchmark.

The first lesson is: don't be fooled by the crowded hospital and think opening a pharmacy nearby is a sure thing. This area already has prescription pharmacies within the hospital and a whole ecosystem of traditional pharmacies that have been established for decades. The chain wasn't foolish enough to jump headfirst into that outdated battleground. They chose to go to residential areas, where the need to buy medicine, vitamins, milk, and pharmaceutical cosmetics occurs daily as a routine.

The second lesson is that the pharmacy model is no longer just a drugstore, but a convenient health retail model. Over-the-counter medications are only a part of the business; the majority of profit margins lie in dietary supplements, vitamins, cosmeceuticals, and personal care products. Anyone who builds a store model that aligns with consumer behavior will naturally attract customers, just like going to a mini-supermarket.

The third lesson is that the chain store race is essentially a race for systems. From choosing locations, store design, operations, technology, to online and offline sales. Opening quickly without a standard model will only make things more difficult. Opening slowly but surely, with each store profitable, is the foundation for long-term success.

And the final lesson: the market is still very large. There are 60,000 pharmacies, but the chain only accounts for about 5-61% of them. This means the game has only just begun, and it's no surprise that the big players are gradually taking a bite out of the pie.

This reminds me of something my former boss said 10 years ago: "In about 10 years, convenience stores will replace grocery stores," and now it's happening. I think the pharmacy market will be the same.

Minh Phan – Site Plus | Choosing the right location.

Here are some tips regarding suitable premises for opening a business:

1. The properties that "look decent" are the ones that will cost you money, not the really bad ones.

2. Don't go to view properties without having a deposit ready – if you find a suitable property but can't reserve it, you'll lose the opportunity.

3. Before renting, ask one question: Will opening here help me save on marketing costs?

4. If your capital isn't strong, don't aim for a grand storefront – high rent will put you under daily pressure.

5. The high rental prices aren't natural; they're disguised by claims of "prime location," "bustling area," and "imminent price increases.".

6. Don't be shy about bargaining – being too embarrassed to ask the price is actually the most polite thing to do.

7. Renting space "for the long term" but not measuring traffic volume = risk in disguise.

8. The real estate agent's statement, "Many people are asking about this property," is only valid when you meet potential buyers in person.

9. Choosing the right location won't make you rich every day, but it can cause you consistent losses if you choose incorrectly.

10. Paying for a good location is reasonable; paying based on hearsay is costly.

11. If a property leaves you feeling pressured after paying a deposit, chances are you've made the wrong choice.

12. Not all cheap properties are good deals; some cheaper properties end up costing more to renovate.

13. Renting a large space with little capital is exhausting, but renting a space that's within your means will allow you to thrive.

14. The thing that causes you to choose the wrong location most often isn't the data, but fleeting emotion.

15. When making a deposit, clearly state the refund conditions – even if you know the person, it should still be clear.

16. Before signing the contract, set a monthly rent limit in advance; don't decide it at the negotiating table.

17. When renting expensive premises, keep all communication with the landlord – you'll have something to refer to later.

18. When you receive the existing site plan, remeasure the area immediately on the spot. Don't wait until you get home to discover the discrepancy in the area.

19. Before transferring the deposit, double-check the landlord's name; a mistake means you're looking for… a different landlord.

20. When renting long-term, remember to ask about the price increase schedule; don't be surprised by the price hikes next year.

21. When conducting group surveys, compile the data on the same day; if you wait too long, you'll forget the real feeling.

22. Don't combine the profits from the first store with the money for opening the second store; it's easy to make the wrong decision.

23. When comparing properties, remember to factor in renovation costs – many properties are inexpensive to rent but expensive to renovate.

24. When working with a broker, clearly state your role and fees to avoid having to "start over" later.

25. When sending property information to the team, separate the details: location – price – area – legal status, so everyone can review it quickly.

26. When viewing a property, take complete photos of the storefront, surroundings, and opposite side – you can only analyze it when you get home.

27. Go eat near the area where you plan to open your store, observe where customers go, and don't just rely on maps.

28. For properties that "only need minor repairs," gather the total cost at the end of the day to determine the actual amount needed.

29. When making a deposit via bank transfer, double-check the amount and the transaction details immediately.

30. And remember to choose your landing spot like catching a train; if you miss this one, you can take another. Try not to get on the wrong train and end up missing it.

The four T's in choosing a location.

Last weekend, right after finishing my KHS0 class, I received a message from a friend saying that another training provider was using the 4T formula without citing the source. I wasn't upset, but rather happy. Happy because what I had learned from real-world mistakes, from those times I made wrong choices and paid the price with real money, was actually helping more people open businesses with less risk. And I felt even more strongly that my decision a few years ago to sit down and systematize the process of searching for and evaluating locations into a clear framework was the right one, even though at the time I simply wanted to prevent others from making the same mistakes I did.

But I've always thought one thing very clearly: 4T was never created to choose locations for anyone else; it only helps me avoid making the wrong choice.

Many people opening a shop for the first time worry: "I'm afraid that sticking too closely to a framework will make it rigid and lose its feel." That worry is very real. But after working on many projects, I realized that a framework doesn't lose the feel; it helps you understand what that feel is based on. In fact, the 4T framework is just a way of looking at the customer journey in real life, just like a funnel from the street gradually into the store. It runs in a continuous stream:

1. Focus – Does this area have enough potential customers? How many people pass by, how many live nearby, and how many actively seek out the product? If the funnel has few customers from the start, even the best work done further down will be very difficult to salvage.

2. Visibility – among those customers, do they see the store? Is the storefront clear? Is the sign obscured? Does the traffic flow long enough for them to notice it? Many places are crowded, but customers… don't see the store at all.

3. Accessibility – how many people can visit? Is it easy to park, is there parking available, and are there any barriers or obstacles blocking the entrance? Many properties look great but fail because customers see them but can't get in.

4. The nature of the space – is it conducive to sales? Is the layout smooth? Do customers stay long enough to make a purchase? What is the actual conversion rate? This is the bottom of the sales funnel.

Looking at it this way, you'll see that the 4T model isn't some profound theory; it simply simulates the customer journey: customer arrives → customer sees → customer enters → customer buys.

Previously, without a clear framework, many decisions were simply summed up in one sentence: "I think this apartment looks good," but that "thinking" often contained a mix of things: a bit of data, a bit of hope, the agent's word, and the pressure of fearing missing out on a desirable property. 4T helps to separate those layers for a clearer view, and interestingly, many people, after analyzing the situation, say to themselves, "I'll pass on this apartment," not because anyone forced them, but because they had already foreseen risks that had been obscured.

I've always thought that opening a store doesn't require being exceptionally skilled from the start; you just need to be level-headed enough to avoid costly mistakes. A framework doesn't guarantee success, but it helps reduce recklessness. And for me, that's already incredibly valuable.

Stable sales have never been a sign that we should open more stores.

A few days ago, I met my younger brother and his wife, who have been running their coffee shop for over eight months. The business is doing reasonably well, and sales are starting to pick up, so they said something very familiar to me: "We're planning to open another branch." Because I'd been traveling constantly for the past few weeks, they finally managed to arrange a meeting. We talked for about an hour. I didn't analyze any charts or advise them on whether or not to open another branch; I just asked a few simple questions: Who are your main customers? If you open another branch now, what are your strongest points? And what areas of potential have you not yet explored with your current store?

At the end of the meeting, the two of them were silent for a few minutes, then smiled and said, "Well, we probably won't open yet. We need to focus on building this store first." That moment felt very familiar to me, as familiar as a story from almost a year ago when I started working with the couple at Nhat Que.

When we first met, they already had two shops. Being traditional sausage makers, their thinking was very practical and professional: to sell more sausages, they decided to open a rice roll shop to boost sales. Everything was based on experience, hard work, and the belief of someone in the trade. But as our team delved deeper into their business and analyzed the numbers, we realized their system was quite fragmented; revenue was present, but expenses were unclear. If you calculated all their hard work, they were barely breaking even. I made a difficult decision at the time: close the two old shops and start anew at 135 Hoang Dieu.

Over the past year, the entire team, along with the owners, have carefully selected sales locations, re-measured customer traffic, clarified data, optimized the menu, streamlined operations, and adjusted every small expense. The result today is that revenue has doubled, and profits have increased many times over. 😁 But what makes me happiest isn't the numbers, but seeing that you all have "improved," learned to read numbers effectively, and that the path ahead has become much clearer.

For me, partnership has never been about doing things for someone else, but rather about learning together, working together, correcting mistakes together, and developing together, with each person doing what they can and what their strengths are. The longer I've been on this journey of opening a store, the more I believe that in this stage and in the future, the one who goes the furthest isn't the one who opens the most stores, but the one who opens the most solid ones. Efficiency is more important than quantity; going slowly but steadily is better than opening quickly and then having to start over from scratch.

“"If you're in the F&B business and don't know how to optimize your workforce, you're doomed."”

I heard this from a clip of some "teacher"... I was sitting eating rice rolls and suddenly felt a lump in my throat, not because it was wrong, but because it was true... but true in a different world. The world of large chains, where HR departments recruit people, there are pre-established processes, and data is used to calculate each time slot. But out there, small restaurant owners like us have to run out of staff ourselves if we're short, we have to cook ourselves if an employee is off, sometimes even bringing our children to the restaurant to eat and sleep there. Recruiting one person can take a whole month and still not be guaranteed, retaining staff is even harder, so honestly, those "optimizing human resources" statements are just wishful thinking.

I'm not denying the knowledge, but sometimes it's funny how those people, who have run a business and managed it for a day, talk as if they're teaching others how to operate it. Have you ever experienced the feeling of customers crowding the shop, the kitchen struggling to keep up, Grab drivers yelling outside for late orders, staff quitting without notice, and the owner having to rush out and do everything? Or like last night, when a woman I was assisting called, her voice almost breaking because the police and city officials were coming to clear the place, it was too crowded, she was panicking and didn't know how to handle it. Those things aren't in slides, they're not in textbooks, but they're things we have to face every day.

Even our team, which we call the "rapid response team," sounds professional, but in reality, we just rush out to handle any emergency, from cars being stopped, police, neighbors... That's the real life of the F&B industry. So sometimes, talking about "optimizing staffing" during that period is like telling a drowning person to swim better. It's not that we don't want to be efficient, but we don't have enough resources to be efficient; it's not that we don't want to optimize, but we don't have enough people to optimize.

Last week, I met a younger colleague at a training course. She told me that after studying at a certain company, she completely adopted the entire corporate process and procedures for her small shop. The result was insufficient staff, chaotic operations, and exhaustion. And during the Lunar New Year, she even had to bring her young child to the shop to sell food. That's when I realized that not everything that works for you is right for you at this point. For F&B business owners, especially in the early stages, the most important thing isn't optimization, but survival. Are you selling well today? Will you have enough staff tomorrow? Will you survive next week? Do it well first, and only optimize after you're able to survive.

So if you're going through a tough phase, don't put pressure on yourself with the idea of "perfection." Learning is still important, but you need to be selective and consider your own resources before applying what you learn. Don't blindly follow everything your teacher says, only to end up losing not just because you haven't optimized your strategy, but because you'll be shut down. The F&B business isn't about slides; it's about those exhausting days when you can barely eat, those times when you're running around breathlessly, and those situations only those involved truly understand. Getting through those phases is already a form of "optimization," not in terms of cost, but in terms of resilience. I wish you continued perseverance on your business journey.

A BOWL OF SIU MAI FOR 25K AND SIDEWALK FOOD…

Yesterday, while shopping along Nguyen Thi Thap street, I stopped at a small shop selling steamed dumplings in a bowl. Initially, I just wanted to try them out, but the more I observed, the more interesting I found it. And sometimes, it's these kinds of field trips that help me understand why some small shops can be so successful.

This place has an extremely simple menu. They practically only sell one item: steamed dumplings in a bowl for 25k and a sandwich for 5k. That's it. But the drinks menu is quite extensive, ranging from soy milk to various refreshing drinks, priced between 20-35k. Looking at it for a while, you immediately understand the logic behind this place's operation: keep the food simple to keep the kitchen running quickly, and the profit comes from the drinks.

This is actually a very common logic in the F&B industry today. According to data from iPOS and many F&B chains I've worked with, the gross profit margin for food items usually only ranges from 55–65% of the total cost, but for drinks it can reach 70–85%, especially for homemade drinks like soy milk, tea, or refreshing beverages. This means that if a customer orders an additional 25k VND drink, the profit margin can sometimes be even better than the cost of a meal.

Not to mention, the fewer the menu items, the worse:

– Faster food service,

– lower inventory,

– The kitchen staff is more streamlined.,

– The rate of incorrect orders is also lower.

For example, a restaurant selling 30-40 dishes would require a very large amount of ingredients, a larger refrigerator, a more complex kitchen, and a higher rate of waste. In contrast, models like those with a single signature dish are almost entirely optimized for rapid turnover.

What I like most is the "easy to visit" feel. The space is small, with low tables about 45cm high and stools placed close together, creating a lively and bustling atmosphere. Many restaurants now are beautifully decorated, but customers feel a little hesitant to walk in. But with this type of place, you just want to sit down and eat right away.

And in fact, to see those things, you absolutely have to go out and experience them firsthand.

In the real estate development industry, we often jokingly call it the "walking problem." That is, to understand the market, you have to walk around, observe, and feel the real rhythm of the area. Many people now just look at Google Maps, read reviews, or look at pictures online and think they understand the market, but that's really not the case.

There are some things you can only see when you're in the field:

– Who are the visitors?,

– whether the customer arrives by motorbike or car,

– Are there a lot of delivery drivers standing around?,

– How long will the guests be seated?,

– Is the restaurant really crowded, or only crowded at certain times?,

– do people buy takeout or sit down to eat?,

– Is the route convenient for vehicles to stop at?.

For example, on the same road, the number of customers on different sides can be completely different simply because of the direction of traffic or parking habits. These things are almost impossible to perceive from a computer screen.

And it was thanks to these field trips that one thing became quite clear: the sidewalk F&B model in Vietnam is truly very strong.

According to iPOS's 2025 report, over 80% F&B establishments in Vietnam are currently small-scale and independent. The majority are street food stalls, small kiosks, or shops with an area of less than 50m2. This group represents the largest "color" of Vietnam's food and beverage industry.

In fact, street culture in Vietnam is something very special. Almost every Vietnamese person is familiar with the sight of sitting on plastic chairs by the roadside, eating a bowl of vermicelli, a baguette, or a plate of dumplings while watching the crowds go by. It's not just about eating anymore; it has often become a part of our way of life and urban culture.

But in the future, the story of sidewalk management will certainly change quite a bit as policies become stricter. To be honest, I'm a little worried, wondering what will become of these small businesses. Because behind each small stall is actually a story of making a living, an entire family, and the business dreams of many people.

I understand that urban management is necessary, but I also hope there will be more appropriate solutions to ensure urban order while preserving some of the unique character of Vietnam's F&B industry. Because often, it is these small roadside eateries that truly bring life to a city.

Minh Phan – Choosing the right location

CROWDED # POTENTIAL

(Series: Secrets of the Roadside Shops)

There's a common misconception I've seen many shop owners, even those who have opened several stores, fall into: that if it's on a busy street with lots of traffic and people passing by, then sales are guaranteed.

I used to think the same way. That was until I went with a chain store owner to survey a prime location on a very beautiful street in Ho Chi Minh City. The traffic was incredibly heavy, cars were constantly moving, and it looked "top-notch" to the naked eye. He almost wanted to close the deal immediately because he felt it was a golden location. But when we stayed a little longer and observed more closely, I realized the opposite: the cars were moving fast, the flow was constant, and very few cars slowed down. To turn in, you had to brake suddenly, and the entrance was rather narrow. In other words… you could see it, but it wasn't easy to get there.

Ultimately, we advised them to stop. The owner was very regretful at the time. But a few months later, someone else rented the space and closed it down quite quickly. It wasn't that they did a bad job. It's just that from the beginning they gambled on something that wasn't a real advantage.

I've realized something: high traffic is only a necessary condition. The sufficient condition is whether customers want to and dare to turn in.

Many people opening a shop look at the location as if it were a static picture: a busy area, a large storefront, and an attractive brand name are enough to reassure them. But in reality, a roadside shop is a dynamic setting. Drivers only have a few seconds to observe, understand, and decide. Just a small inconvenience, such as difficulty turning, difficulty stopping, or fear of getting stuck in traffic behind, can instantly ruin that decision.

I've seen quite a few similar cases while working with business owners. Some locations might seem unremarkable at first glance, but because they're easy to access, have convenient parking, and are easy to get out of, customers naturally flock to them. Conversely, there are locations that everyone praises as beautiful, but they quietly lose customers every day, and the owners don't understand why.

That's why I always say: roadside shops don't sell coffee, they don't sell products; they're selling a change of direction that happens in a matter of seconds.

Looking back, I realize that many of the wrong decisions didn't stem from a lack of money or experience, but from a misunderstanding of the true nature of the position.

This article is just the beginning of a series about roadside stores. In the next article, I will delve deeper into something many people overlook but which determines the survival of a store: customers see you… but will they actually visit? This is also the work I do with business owners, analyzing data, customer behavior, and operational realities before making final decisions in the training and support package for opening a store, with a very simple goal: to reduce the risk of making a mistake right from the location selection stage.

In the next post, I'll talk about something very interesting: many stores fail not because customers don't see them… but because customers see them but can't bring themselves to visit.

EDGE and COMPETITION

Many people, when forecasting revenue, often look at something very obvious: foot traffic. A lot of cars and people automatically mean good sales. But after years of surveying and opening locations with clients, I've found there's a variable that, if misunderstood, can skew the entire forecast from the start – and that's competition.

Interestingly, competition isn't just about how many rivals surround you. Competition is essentially about customer choice. Customers might leave your restaurant not because the one next door is better, but because they find another option more convenient, more familiar, or simply... already part of their daily routine.

Many people view competition in a very narrow sense: only those selling in the same industry are considered competitors. But the reality is much broader. A coffee shop in Vietnam today competes not only with other coffee shops, but also with bubble tea shops, convenience stores offering takeaway drinks, and even bakeries with nice seating. Ultimately, customers aren't buying "coffee"; they're buying the experience or fulfilling a need at that moment. Some industries have very clear boundaries, while others have almost completely blurred lines. Misjudging the scope of competition almost certainly leads to inaccurate revenue forecasts.

One thing I've noticed many new business owners misunderstand is that being close to competitors is always bad. In reality, the market operates quite the opposite way. In economics, there's a model that suggests many stores tend to be located close together because sellers want to maximize market share – this phenomenon is called location competition. If you notice in Vietnam, streets with many cafes, restaurants, or densely packed service establishments are usually very busy. The reason is simple: customers prefer places with more choices. Studies on the concentration of many businesses in the same or related industries in an area also show that when businesses are concentrated, a positive ripple effect occurs, boosting the overall performance of the entire area. Simply put: A cafe standing alone → customers must have a reason to visit. A cluster of 10 cafes → the area itself becomes a destination.

In everyday language: sometimes competitors aren't stealing your customers, but rather attracting them to their own area.

This is particularly evident in the Vietnamese market. For example, the coffee industry continues to expand strongly. Several recent reports indicate that the Vietnamese coffee market is still growing steadily, with a CAGR of approximately 6–81 TP3T in the coming period, and the sit-in cafe model is one of the fastest-growing channels. As the market continues to grow, the emergence of many brands is essentially expanding the "pie" rather than immediately dividing it. That's why many chains choose a cluster expansion strategy instead of avoiding each other.

But the other side of the coin also needs to be clarified. When the market is saturated and the customer base is no longer growing, each new store opening essentially means a portion of the sales are being lost. At this point, simply counting the number of competitors isn't enough. What I always do is look at another layer: the quality of the competitors. A weak competitor, with a weak brand and poor service, sometimes has almost no impact. Conversely, just one strong brand placed next door can significantly reduce the projected revenue.

In models studying spatial competition, store sales are typically influenced by two main factors: distance and the attractiveness of competitors. Simply put: the closer and stronger the competitor, the greater the attraction. This is something that store owners in Vietnam often overlook, focusing only on distance and forgetting about "brand weight.".

The lesson I've learned from many real-world cases is: when surveying a site, don't ask "how many competitors are there?", but ask "why are customers coming here, how many options do they have, and where do I stand in their minds?". Once you can answer that, the cost estimate will naturally be much more realistic.

And one more thing that's very important, especially for those opening stores in Vietnam: competition isn't something to avoid. It's data to help you understand the market. If an area already has many brands and more are opening, it's often not a dangerous sign, but rather an indication that the area has a sufficiently large customer base.

Ultimately, competition is just one variable in the overall revenue equation. It always goes hand in hand with location, store model, pricing, products, and operations. But if you understand competition correctly—its scope, quality, and its two-way impact—you'll avoid a very common trap: opening in a place with "few competitors" only to discover the real reason is... there's no market.

I often tell my team a very simple thing: it's not about who can avoid the competition that wins, but about who understands the competitive landscape. That way, they can make more accurate predictions and open their store with much less stress.

EASY CHOICE FOR CUSTOMERS

(Series: Secrets of the Roadside Shops)

Following my previous post, many of you messaged me with a very interesting question: "If customers have already seen the shop, why don't they come in?" It sounds simple, but this is precisely the point that most shop owners misunderstand.

I'll recount a real-life case that my friend and I discussed. A shop was located right on a busy main road with heavy traffic, a prominent sign, and from the outside, everyone thought it was a prime location. The owner believed that simply putting up a large sign would attract customers. But after observing for a longer time, I noticed something completely different: almost no cars slowed down. They saw the sign, and then drove on.

The problem isn't the ground. The problem is the driver's brain.

When a person is driving, the brain has to process many things at once: maintaining distance, observing other vehicles, reading road signs, and processing directions. Studies on driving behavior show that when there is too much information in a short period of time, drivers are prone to "information overload," leading to quick decisions, overlooking or performing safer actions instead of trying something new.

Simply put: the human brain always prioritizes safety and ease, not curiosity.

Many people opening shops are looking at the location from the perspective of someone standing still:

– clearly visible

- large frontage

- East road

But drivers are in a completely different situation. They are under time pressure and have to handle many tasks simultaneously. Studies on traffic behavior show that when faced with a decision within a limited time, people often choose the least risky option, which means… continuing to drive.

That's why I often say: roadside shops aren't just about marketing; they're about cognitive load.

If customers want to visit your restaurant, they must do three things in a row:

– Seen

– Understand how to access

– Feeling safe enough to turn

Just one step that makes them think more, for example, a narrow entrance, a difficult turn, or a fast-moving car behind, and their brain will automatically choose the simpler solution: ignore it.

This is something I've seen happen repeatedly while working with business owners. Some locations may not look particularly striking, but because they're easy to get in and out of, customers naturally flock there. Conversely, there are places that everyone praises as beautiful, but they silently lose customers every day because customers see them and... hesitate to visit.

The biggest takeaway I've learned after years of working in real estate is: we often judge a location by the eye of the business owner, but customers make decisions based on the feeling of being on the go. And that feeling is biological, not emotional.

Minh Phan – Choosing the right location

ENTRY – PARK – EXIT

(Series: Secrets of the Roadside Shops)

If anyone has ever accompanied me on a site survey, they'll hear me repeat one thing over and over: for a roadside shop, there are only three things that need to be done right: Accessible, Parkingable, and Exitable.

It sounds simple. But the more I travel, the more I realize this is the most overlooked thing.

I once went on a site survey with a business owner preparing to open a new location. The spot was great, on a main road with good traffic, and the view from the front was very open. But after observing the traffic for a while, I noticed a small problem: cars had to slow down sharply to get in, and there were constantly cars speeding behind. This meant the driver had to be a little "risky" to pull over. The owner said, "It'll probably be fine, customers will come in when they get used to it." But I thought differently. New customers are what determine growth, and relying solely on repeat customers will make it very difficult for the business to thrive.

Going into a bit more detail, I'll share the perspective I usually use when evaluating roadside spots:

#1. ENTER – Is it easy to make a decision?

It's not enough to just "have an entrance." The real question is: Does the driver feel safe turning in? If they have to brake suddenly, make a sharp turn, or fear the car behind honking, their brain will automatically choose the safe option: keep going. This is a very natural human reaction while driving. They don't want to create additional risks just to try a new place. In fact, I've seen many seemingly beautiful shops that put customers in a very difficult decision-making situation in just a few short seconds.

#2. DO – Does it make guests feel comfortable?

Many people think parking is just a secondary aspect. But in reality, it's the most noticeable factor for customers. In opening a store, the ratio between seating and parking is always considered a very important element because it directly affects the customer experience. I often refute a misconception: "If there's a lack of parking, customers will have to find their own way." Not necessarily.

Customers are becoming increasingly impatient. If they have to struggle to find a parking spot, their initial enthusiasm is dampened. And that initial feeling strongly influences whether or not they will return.

#3. RA – The most forgotten part

Interestingly, during the survey, almost everyone looked at the entrance. But very few paid attention to the exit. Why? Because during the survey, we were standing outside looking in. But customers were thinking: "Will it be easy to get out after I finish eating?" If it's difficult to get out, requires a long wait, involves a dangerous U-turn, and negatively impacts the overall experience, it will immediately lose points.

A good store isn't just about easy access; it should also give customers the feeling of being able to visit quickly, leave quickly, and without any hassle.

After years of working in real estate, I've realized something quite painful: many business owners invest heavily in design, marketing, branding, etc., but overlook the basic customer experience. Yet, this is what ultimately determines whether a customer will enter or not. Looking deeper, the "Enter - Park - Exit" aspect isn't just about traffic engineering; it's about human behavior.

Customers always choose the easiest option. And the store that makes the visit feel the most natural wins.

If you're preparing to open a store, or are weighing many options, sometimes the most important thing isn't to go look at more locations… but to go back and look at these three "basic but crucial" things: Accessibility – Parking – and Exitability. Because ultimately, customers don't enter a store based on… emotion. They enter with a decision made in a few seconds: "Is it easy to visit? Is it inconvenient? Is it safe?"“

If you want me to work with you to assess potential locations based on behavioral logic (not just "beautiful - busy - cheap"), I have a Training & Mentoring program for opening a location: we'll sit down together to finalize the formula for selecting a location, conduct on-site surveys, and make decisions about signing/not signing based on real risks. If you're interested, message me "OPEN A LOCATION," and I'll send you a checklist for checking potential locations.

Image source: Highlands Coffee

Minh Phan – Choosing the right location