Location determines success

The takeaway coffee model was once seen as a “gateway to entrepreneurship” for those with limited capital. Mobile carts and compact stalls sprang up like mushrooms, attracting countless individuals with dreams of quick riches.

Nguyen Duy Duc, a former office worker in Hanoi, once invested over VND20 million in a coffee cart and a barista training course. Unemployed and under pressure, he was eager to start a business. After watching several online videos, he was drawn in by ads from a supplier offering coffee stalls and ingredients.

“At first, I thought this was an easy opportunity,” Duc said. “You only need a few tens of millions to start, and profits could be 50 to 70 percent per cup. No need for a big space, just stand on the street and you’ll get customers.”

However, selling to passersby and maintaining stable revenue was far from easy. The training unit Duc signed up with did not mention the real-world challenges.

Duc’s first shock came when authorities stopped him on opening day for operating on the sidewalk. Later, he got permission to use a relative’s space, but customer turnout fell short. Initially, he only sold to acquaintances; passersby rarely bought as the street already had 8-9 similar coffee carts.

According to Duc, street vending heavily depends on the weather. Sunny or rainy days brought few customers. The model relies on passersby, so revenue was inconsistent. In his free time, he tried livestreaming on social media to promote his business, but support was sparse. Moreover, sidewalk stalls can’t register on food delivery apps.

After a period of ineffective street vending, Duc decided to close his coffee stall and look for a more suitable job.

“When I started selling takeaway coffee on the sidewalk, I didn’t anticipate many things. If this is your main job, you need to sell at least 50 cups a day to cover ingredient and labor costs,” Duc said. Unable to sustain the model, he sold his stall, accepting a loss of over VND20 million.

Having failed after three months of selling takeaway coffee on Nguyen Huu Tho Street, Nguyen Thi Thao said takeaway model providers only sold ingredients without advising on how to reach passersby.

“I prioritized high-quality coffee, thinking that customers would return for the taste. But in reality, at VND20,000-30,000 per cup, passersby often chose cheaper options to save money,” Thao said.

She added that location determines 80 percent of success. Without a spot near busy offices, schools, or intersections, it’s not worth the investment.

“I once stood in a bad spot with few passersby, so I couldn’t sell 20 cups a day. Even with good coffee, customers didn’t know me. Passersby come because of location first. They return for quality and service attitude,” Thao shared.

Easy to start, hard to sustain profits

According to Nguyen Duc Minh, a coffee business consultant, the mobile cart model attracts people due to its low startup cost and easy entry. With just a cart and basic drink-making skills, anyone can start a business. Financially, it allows for quick capital recovery since the initial investment is small and losses are relatively manageable.

However, it has clear downsides: heavy dependence on external factors like location and weather. With low prices, achieving high profit margins is difficult. Additionally, the model is easily copied. Once a cart becomes successful, similar ones often pop up nearby, leading to intense competition and reduced profitability.

Meanwhile, customer preferences change quickly, especially in big cities like Hanoi. While takeaway coffee was once trendy, customers may now prefer fruit teas, smoothies, and other beverages. If sellers don’t diversify their menu or keep up with trends, customers will easily move on.

The consultant advises entrepreneurs to focus on building a personal brand and creating product differentiation. In addition to coffee, developing unique drink recipes can help establish a memorable identity and retain customers.

Duy Anh