{"id":329,"date":"2026-05-13T11:53:31","date_gmt":"2026-05-13T04:53:31","guid":{"rendered":"https:\/\/minhphan.vn\/?p=329"},"modified":"2026-05-13T11:53:32","modified_gmt":"2026-05-13T04:53:32","slug":"milk-tea-rent-and-premises","status":"publish","type":"post","link":"https:\/\/minhphan.vn\/en\/tra-sua-gia-thue-va-mat-bang\/","title":{"rendered":"MILK TEA, RENTAL COSTS AND PREMISES\u2026"},"content":{"rendered":"

Lately, while surveying locations and browsing maps of bubble tea chains in Saigon, I've had a strange feeling: the market is packed with brands, but whenever CG opens a new location, the entire surrounding area becomes bustling. People flock there out of curiosity, landlords start asking for higher prices, and real estate agents whisper to each other about a major tenant moving in. I'm not trying to argue about right or wrong here. It's simply... curiosity.\"\ud83e\udd14\"<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

I was curious about the business viability of a high-end tea shop model in a context where consumers increasingly prefer low prices, quick purchases, and immediate consumption. Even more curious was the financial strategy behind renting premises for hundreds of millions, or even nearly a billion VND per month.<\/p>\n\n\n\n

Looking at the store distribution map, it's easy to see that CG isn't spread out evenly like other kiosk chains. They choose prime locations in the city: corner stores, major thoroughfares, and areas with high concentrations of offices and residential buildings, where simply putting up a sign will attract the attention of a stream of cars. Wherever they open, it becomes a check-in point. It feels more like they're buying locations rather than just renting a space to sell drinks.<\/p>\n\n\n\n

Then, when flipping through the rental price lists, the story started to get more interesting.<\/p>\n\n\n\n

There are apartments in Binh Thanh, Phu Nhuan, and Tan Binh districts being offered for 180-230 million VND per month for large units with proper ground floor and upper floor arrangements. In the city center, many locations are priced at 30,000-35,000 USD per month, not to mention those approaching 1 billion VND. This is a price range previously seen at banks, car showrooms, or international fashion brands.<\/p>\n\n\n\n

I naturally asked myself: with such high rent, how can the shop possibly operate and survive?<\/p>\n\n\n\n

Let's take a very common example. Suppose a store rents 200 million VND per month. In the F&B industry, to be safe, rent should generally be somewhere around 10-15% of revenue (I'm giving a simplified perspective so we can easily understand, but in reality, the cost of premises is a fixed expense and cannot be calculated as 1% of revenue). This means that the store needs to generate around 1.5-2 billion VND in revenue each month for the calculation to become manageable. If each drink sells for an average of 60,000-70,000 VND, then it needs to sell around 800-1,000 drinks per day, consistently for 30 days.<\/p>\n\n\n\n

That number isn't impossible, but it clearly requires a very good location, a very smooth operating model, and a brand strong enough to attract repeat customers, not just a few weeks of high demand.<\/p>\n\n\n\n

But for properties costing $30,000 a month, it's a different story. At this point, it's no longer about selling bubble tea, but about organizing an entire destination. You have to create a habit of visiting, have a stable customer flow, and make the store an integral part of the neighborhood's daily routine. Otherwise, the rent will become a heavy burden hanging over your cash flow.<\/p>\n\n\n\n

From a market perspective, the emergence of a brand willing to pay a high price like CG has a very clear effect. Homeowners see someone willing to spend, so they raise their expectations. Brokers see a high-priced deal and immediately secure new properties. And so, the price levels along an entire street are reset. This isn't necessarily bad, but it makes me even more curious about the real effectiveness behind those flashy numbers.<\/p>\n\n\n\n

While rents are rising rapidly, consumer purchasing power doesn't always keep pace. Young people still enjoy new experiences, but are also increasingly price-sensitive. The market is highly polarized: on one side, there are cheap kiosks covering specific locations, and on the other, large, branded stores. The middle ground is very difficult to navigate.<\/p>\n\n\n\n

From the outside, I don't think the story is about whether "high rent is foolish" or "low rent is smart." Each model has its own strategy. But what's certain is that the game now is no longer simply about finding a good location and opening a business.<\/p>\n\n\n\n

The real question is: can my business model handle the significant fixed costs? Is the revenue target clear enough to know which game I'm entering? And when the market slows down, will I still have room to maneuver?<\/p>\n\n\n\n

For those preparing to open a store during this period, perhaps what they need to learn is not just about beverage preparation or design, but about seriously considering the financial aspects: understanding the cost structure, knowing what percentage of revenue is accounted for by rent, calculating the break-even point, and anticipating cash flow for months that don't meet expectations. Along with that, they need to think strategically about choosing a location for the long term, rather than just basing their decision on "where there's a lot of customers, there's a good opportunity.".<\/p>\n\n\n\n

Looking at the bigger picture, the story of prime locations is no longer just a competition for the bubble tea or F&B industries. Today's business owners are directly competing with banks, showrooms, gyms, retail chains, fashion chains, convenience stores\u2026 all vying for the same "golden spots" in the city.<\/p>\n\n\n\n

A prime corner location, a busy street, a highly visible spot \u2013 it's no longer a one-person exclusive domain. And when large chains from other industries are willing to pay high prices to acquire such locations, the battle for prime real estate naturally becomes much more intense.<\/p>\n\n\n\n

Therefore, opening a store now is not just about making delicious products or decorating beautifully, but a comprehensive game involving finance, operations, branding, and sustainability. Business owners need not only passion, but also courage, discipline, and the ability to go the distance.<\/p>\n\n\n\n

The market is getting increasingly difficult, but that also means those who survive will become stronger. I wish you all the clarity of mind to make the right decisions, the courage to pursue your chosen path, and the perseverance to see it through to the end.<\/p>\n\n\n\n

Minh Phan \u2013 Site Plus | Choosing the right location.<\/p>","protected":false},"excerpt":{"rendered":"

D\u1ea1o n\u00e0y \u0111i kh\u1ea3o s\u00e1t m\u1eb7t b\u1eb1ng, l\u01b0\u1edbt b\u1ea3n \u0111\u1ed3 chu\u1ed7i tr\u00e0 s\u1eefa \u1edf S\u00e0i G\u00f2n, t\u00f4i c\u00f3 m\u1ed9t c\u1ea3m gi\u00e1c r\u1ea5t l\u1ea1: th\u1ecb tr\u01b0\u1eddng th\u00ec \u0111\u00f4ng ngh\u1ecbt th\u01b0\u01a1ng hi\u1ec7u, nh\u01b0ng m\u1ed7i khi th\u1ea5y CG m\u1edf m\u1ed9t \u0111i\u1ec3m m\u1edbi, c\u1ea3 khu v\u1ef1c xung quanh l\u1ea1i r\u1ed9n l\u00ean h\u1eb3n. Ng\u01b0\u1eddi t\u00f2 m\u00f2 k\u00e9o t\u1edbi th\u1eed, ch\u1ee7 […]<\/p>\n","protected":false},"author":1,"featured_media":330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":["post-329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-phan-tich","category-tu-duy-chien-luoc"],"acf":[],"yoast_head":"\nTR\u00c0 S\u1eeeA, GI\u00c1 THU\u00ca V\u00c0 M\u1eb6T B\u1eb0NG\u2026 - MinhPhan.Vn<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/minhphan.vn\/en\/milk-tea-rent-and-premises\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TR\u00c0 S\u1eeeA, GI\u00c1 THU\u00ca V\u00c0 M\u1eb6T B\u1eb0NG\u2026\" \/>\n<meta property=\"og:description\" content=\"D\u1ea1o n\u00e0y \u0111i kh\u1ea3o s\u00e1t m\u1eb7t b\u1eb1ng, l\u01b0\u1edbt b\u1ea3n \u0111\u1ed3 chu\u1ed7i tr\u00e0 s\u1eefa \u1edf S\u00e0i G\u00f2n, t\u00f4i c\u00f3 m\u1ed9t c\u1ea3m gi\u00e1c r\u1ea5t l\u1ea1: th\u1ecb tr\u01b0\u1eddng th\u00ec \u0111\u00f4ng ngh\u1ecbt th\u01b0\u01a1ng hi\u1ec7u, nh\u01b0ng m\u1ed7i khi th\u1ea5y CG m\u1edf m\u1ed9t \u0111i\u1ec3m m\u1edbi, c\u1ea3 khu v\u1ef1c xung quanh l\u1ea1i r\u1ed9n l\u00ean h\u1eb3n. 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