Brian Jeffrey
A noodle shop in Linh Dam, located in Hanoi’s Hoang Mai District, has recently raised its prices after holding the same rates for quite a while. The rise was prompted by increased costs for vital ingredients like meat, vegetables, cooking gas, and spices.
“We had to increase prices by VND 5,000 for each serving. The old standard was VND 30,000 (USD 1.18), and now most items are between VND 35,000 and VND 40,000 (USD 1.38 to USD 1.58),” said the shop owner.
“Since the beginning of the year, input prices have been rising continuously. At VND 30,000, we couldn’t manage our expenses anymore. We understand this might affect our customer numbers, but we need to adjust prices to stay afloat,” she explained.
The price of pork has surged by about 30–40% compared to last year, and beef is now about 10% more expensive. Essential ingredients like cooking oil and pepper have also been consistently increasing in price.
The increase in prices is attributed to the skyrocketing costs of beef, soup bones, and herbs. Beef has risen by 10–15% since last year. Coupled with higher transportation, electricity, and water costs, these factors have compelled eateries to alter their menus to avoid losses.
At another pho shop in Tay Mo (Hoai Duc District), prices for dishes like rare beef pho and beef brisket pho were raised by VND 5,000, now costing VND 40,000 (USD 1.58) per bowl. Employees mentioned that the increase was essential for the shop to remain profitable. Previously, they managed to keep prices low as a family-run establishment without rent expenses.
Apart from ingredient expenses, rent is a significant challenge for many food vendors, especially those operating in central Hanoi. Several small eateries are contemplating further price increases or downsizing to manage their finances.
The owner of the Linh Dam shop revealed her monthly rent is VND 30 million (USD 1,185) for a space of just over 30 square meters. “Linh Dam is very densely populated, and landlords assume our business is thriving. They often demand higher rents, but in reality, we’re struggling to stay in business. We’re trying hard to avoid raising prices while still ensuring quality. However, our revenue is dropping as customers become more cautious with their spending,” she stated.
Tuan, who runs a small restaurant in Thanh Xuan District, shared similar concerns: “I spend a significant amount on rent alone each month, alongside utility bills and staff wages. If prices don’t go up, I won’t survive.”
Many owners noted that if rents continue to spike, they might need to increase prices further by VND 5,000 to VND 10,000 (USD 0.20 to USD 0.40) in the near future.
In response to these hurdles, some eateries are finding innovative ways to adapt. A few have started offering desserts and drinks to boost revenue and attract repeat customers. Others are enhancing their online delivery services through food apps to reach office workers and those working from home.
Some restaurants have also opted to share their spaces with other vendors or open new locations in areas with more affordable rent.
Huong, a vendor in Hoang Mai District, commented: “I used to rent my space all day for noodle sales. Now I partner with someone who sells spicy noodles in the evening. This arrangement helps increase income and eases the burden of rent.”
