In 2022, Hung, 35, decided to open a Korean-style cafe after much consideration and referencing a similar model in Hanoi.

Every time he visited that shop, he saw customers flocking to take photos and order drinks. The café was so crowded that customers had to queue sometimes. He believed that if this model were replicated, it would certainly succeed.

Hung decided to borrow VND1.8 billion from a bank to open a cafe with a similar style. He rented a wide street-front house in a densely populated residential area in Hanoi and began renovating the space.

Most of the capital was used for design and decoration. The shop was decorated in a Korean style with many green plants, large windows, and warm lighting. Wooden tables, chairs, and several items were imported to create a difference from the surrounding cafes.

The space was carefully designed with multiple photo spots, aiming to attract young customers, a group that has helped many “check-in” cafes become popular.

During the first few months after opening, the cafe attracted a considerable number of visitors. Some were friends and acquaintances coming to support him, while others were curious customers drawn by the new concept. In the first three months, customer traffic was relatively strong, and Hung believed he had made the right decision.

However, the situation soon changed. Customer numbers gradually declined month by month. On weekdays the cafe became quite quiet, with only modest crowds on weekends.

After reviewing the surrounding area, Hung realized the problem. Although the cafe was located on a busy residential street, most residents were middle-aged families and older people. Their preferences leaned toward traditional coffee shops or familiar local cafes rather than photo-friendly “check-in” spaces.

In addition, the area had few universities or office buildings, the main customer sources for “check-in” cafe models.

Another mistake was the lack of a marketing strategy before opening. Hung expected the street-front location and attractive space to naturally draw customers. In reality, most early visitors came out of curiosity. Once the novelty effect faded, the cafe did not have a large enough base of loyal customers to maintain revenue.

Monthly operating costs also created pressure. Rent, staff salaries, ingredients, and maintenance expenses meant the cafe needed relatively high revenue just to break even.

After about 6 months, the shop began to operate at a moderate level. By the 10th month, when the reserve funds were nearly exhausted, he was forced to close the café and liquidate the furniture. The total amount of loss after liquidating assets and paying the remaining costs amounted to nearly VND800 million.

Sharing about the failure, Hung believed his biggest mistake was the decision to do business just because he saw another model that was crowded.

Mistakes that cause cafes to fail

According to Van Nguyen, a consultant in the F&B field, cases like Hung's are quite common among new entrepreneurs. Many people are convinced by images of crowded shops but forget to analyze the factors behind them such as location, customer segment, brand, or marketing strategy.

A business model may succeed in one area but not necessarily work in another. Consumer habits, residents’ age groups, office density, and the presence of universities all directly affect customer traffic.

Copying a business model without researching the local market can lead to large investments but failure to reach the right target customers.

Van Nguyen said that before investing in the F&B sector, entrepreneurs must clearly answer one key question: where their real customers are.

Do not start a business simply because others are crowded with customers. Start a business because you truly understand your customers.

In many cases, a smaller cafe with moderate costs located in an area with the right customer base may have a much better chance of surviving and growing sustainably than a large investment placed in the wrong market.

Duy Anh