April Tea Shop to close down amid F&B sector woes

The Tiem tra thang 4 (April Tea Shop), a popular check-in and beverage destination for young people in Ho Chi Minh City, has announced it will shut down on December 25, ending a five-year journey.

The brand’s final outlet is located on Nam Ky Khoi Nghia street, District 3.

This follows earlier announcements on the brand’s official fanpage regarding the closure of two other outlets on Nhieu Tu street, Phu Nhuan district and Hong Linh street, District 10.

The tea shop's fanpage, which has amassed 53,000 followers, was filled with comments from customers expressing regret over the closure. While many appreciated the venue's well-designed aesthetic as a check-in spot, some suggested that the brand should have invested more in improving the quality of its beverages.

The announcement came just weeks after the closure of Monkey In Black, a 10-year-old coffee chain beloved by HCMC’s youth.

Monkey In Black, founded by startup expert Tran Thanh Tung, also known as Tung BT, shut down its last outlet on Su Van Hanh street, District 10 in November.

Tung BT revealed that he has no plans to launch another coffee or F&B brand, citing the industry’s challenges. “The profit margins in this field are too thin compared to other industries I am involved in,” he explained.

The closures of April Tea Shop and Monkey In Black reflect broader struggles in Vietnam’s F&B sector.

In August, iPOS.vn, a company specializing in management solutions for the F&B industry, released a report detailing the industry's challenges during the first half of 2024. The report highlighted that at least 30,000 F&B outlets across the country had closed in H1, with new openings remaining limited.

HCMC was hit hardest, experiencing a nearly 6% decline in the number of F&B establishments. In contrast, Hanoi saw slight growth of 0.1% during the same period.

Even iPOS.vn, which provides operational support to F&B businesses, has faced difficulties. Reports have emerged that the company owes social insurance payments and has had to close some of its branches.

According to data from Hanoi Social Insurance, as of December 5, iPOS.vn was two months behind on social insurance payments, owing nearly VND1.5 billion ($58,930).