Following a vibrant decade of success, many well-known cafés and restaurants in Hanoi have announced closures. The city’s F&B sector is now entering a sharp reset phase, driven by rising costs and evolving consumer habits.

Farewells across the capital

Trill Rooftop Cafe, once regarded as a pioneer of Hanoi’s rooftop café trend, has officially closed its doors as of October 27.

In a heartfelt farewell on social media, Trill's representative wrote: “Some journeys don’t last forever, but they leave a lasting mark. Ten years is not just a number - it’s golden afternoons above the city, loud laughter over coffee, rainy days with people seeking shelter.”

Trill was among the first rooftop cafés in Hanoi, offering open-air spaces with panoramic views of the city that drew in generations of customers.

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A café bids farewell after years of operation. Photo: FB

Earlier, Toka Coffee Stand on Dang Thai Than Street had also closed, announcing its final day on October 12. The owner wrote: “We’re truly sad to say goodbye, but deeply grateful for the time we shared with our customers.”

Sori Garden, known for its Instagrammable photo setups, also posted a closure notice. According to the owner, “farewell isn’t the end, but a way to preserve beautiful memories.”

On Tran Nhan Tong Street, Aha Cafe - a prominent franchise once rapidly expanding across Hanoi - has also shut down. The property now bears a "for lease" sign, adding to the list of familiar names retreating from the market.

In the restaurant sector, Bai Tom, a popular seafood spot among younger diners, also announced it was shutting down. In its parting message online, the restaurant shared: “Every journey comes to an end. Though a year passed quickly, every smile, every meal, every moment at Tom’s will always be a cherished memory.”

The decision, according to the restaurant’s team, followed a long stretch of challenging conditions in the turbulent F&B landscape. They thanked customers for their support and expressed hope of returning someday with a new chapter.

The announcement quickly attracted hundreds of comments from loyal customers, many expressing sadness at losing a favorite weekend meetup spot.

A wave of market cleansing returns

After years of fast growth, Hanoi’s F&B sector is now undergoing a natural adjustment as business models, cost structures, and consumer behavior all shift.

Brands that fail to adapt to these changes are being quickly forced out of the race.

According to an iPOS report, more than 50,000 F&B outlets nationwide had shut down by mid-2025 - a 7.1% drop compared to 2024. Hanoi and Ho Chi Minh City each recorded over 11% declines, indicating a faster-than-expected contraction.

The cost burden and shifting habits

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Many F&B outlets across Hanoi have closed down. Photo: D.Anh

Expert Tran Khanh Minh Son explained that many cafés and restaurants were forced to close due to plummeting revenues combined with soaring operational costs.

On the consumer side, belt-tightening is increasingly evident. Many people are eating out less to save money.

A Q&Me survey found that 57% of respondents have cut back on dining out, opting instead for home-cooked meals or lower-cost food delivery services.

Meanwhile, on the business side, rents, staffing, and ingredient prices have all climbed sharply. Rental costs in central districts have risen by 15% to 25% year-on-year, and input prices for key goods such as coffee, meat, cooking oil, and utilities remain high.

The market is also more competitive than ever, with a surge of new models and fast-changing consumer preferences. Many brands have struggled to keep up, unable to revise their concepts or business strategies in time.

Time to shift mindset and strategy

To survive, businesses must embrace a leaner and more realistic operational mindset.

First, cost optimization is key: renegotiating rental contracts, reducing back-office staff, and streamlining workflows are necessary steps.

Second, revenue diversification is critical. F&B brands should not rely solely on in-store customers but also expand into online sales, delivery services, or hosting small events.

Finally, it’s essential to clearly define target customer segments. Businesses should focus on core audiences instead of chasing short-term trends.

Some brands, according to market surveys, have hinted at a potential comeback with scaled-down models that emphasize core products and deeper customer experiences.

Duy Anh