Burger King shutters flagship in Ho Chi Minh City

Photo: Burger King

In a statement on its official Facebook page, the company said, "All the fond memories at Burger King Pham Ngu Lao will officially come to an end on October 7." Following this decision, Burger King will be left with only 10 stores in Vietnam. Nonetheless, the brand has assured its customers that they “will be back soon,” hinting at a possible return in the future.

With the closure of its Pham Ngu Lao location, Burger King will now operate a reduced network across Vietnam, split evenly between five in Hanoi and five in Ho Chi Minh City, according to the company’s website. This marks a significant scaling back from its initial plans for nationwide expansion.

Burger King entered the Vietnamese market in 2012, facilitated by its local franchisee, Vietnam Food and Beverage Services Co., Ltd. From the outset, the brand aimed to expand rapidly by establishing outlets in prime locations across the country, seeking to maximise consumer visibility and accessibility.

The Pham Ngu Lao outlet, which opened in 2013, was a key part of this ambitious strategy. Situated in a "prime location" opposite 23/9 Park, just a few hundred metres from Bui Vien street and about 1km from the iconic Ben Thanh Market, it was expected to play a major role in Burger King’s growth in Vietnam.

However, despite this strategic positioning, the company’s expansion plans did not go as envisioned. Three years into its venture, Burger King had only managed to open 17 stores in total. By early 2016, four outlets, including two in Ho Chi Minh City, one in Hanoi, and one in Danang, were forced to close their doors.

The closure of the Pham Ngu Lao store is not an isolated incident, but rather part of a broader trend among major American brands struggling to maintain their foothold in Ho Chi Minh City’s prime locations. The challenging real estate market and fierce competition have led many to reevaluate their presence in Vietnam.

Starbucks was among the first to make headlines with the closure of its flagship Reserve store on Han Thuyen street in District 1. The Starbucks Reserve Han Thuyen was the only Reserve concept store in Ho Chi Minh City, offering a premium coffee experience. It was regarded as a “legendary” and iconic venue for Starbucks in the city, alongside the Starbucks New World branch, which was the brand’s first store in Vietnam.

Shortly after Starbucks, McDonald’s followed suit by announcing the closure of its Ben Thanh outlet, situated just 700 metres from Burger King Pham Ngu Lao. The McDonald’s Ben Thanh branch opened in May 2014, only three months after the fast-food giant made its debut in Vietnam. Initially, McDonald’s had declared plans to open 100 outlets nationwide within a decade, but in 10 years, the company has realised just over one-third of that.

McDonald's Ben Thanh store closes after 10 years McDonald's will close its Ben Thanh outlet in Ho Chi Minh City on September 19, marking an end to a decade of operations in District 1.