Hanoi bars still struggling despite opening

New trends temporarily "frozen"

Trung's The Man Cave opened in 2018 in Hanoi, is an ideal destination for adults who are passionate about cigars and whisky, as well as classic style. The shop is located on the second floor of an old French villa at 6 Phan Dinh Phung - one of the most famous romantic streets in the capital.

However, after 5 months of closure due to the Covid-19 pandemic this year, this destination is no longer as bustling as before. Many customers have left. Expensive rental fees and support for staff staying in the city are still weighing heavily on the owner's shoulders.

“There were times when I thought about closing it, but I still had faith in the bar and the cocktail bar industry in Hanoi, so I continued to try to maintain it,” Trung shared.

Unlike the club or pub model, cocktail bar is a new trend that has been popular in Hanoi since the end of 2019, the beginning of 2020. For cocktail bars, the space is usually not too crowded and bustling, instead, bartenders focus on mixing each drink and interacting with customers, and customers come here to experience the drinks and the calm, relaxing atmosphere of the bar.

When Western cocktail bar culture “landed” in Hanoi and quickly attracted “wine lovers” - especially those in their 30s and 40s, many cocktail bars were opened in the Old Quarter and around West Lake. However, after the recent social distancing period, the cocktail bar service industry in particular is facing great difficulties. In Hanoi in 2020, there were more than 40 cocktail bars, and to date, about 60% of them have closed permanently before being allowed to operate again.

For those that choose to continue operating, owners are still struggling to adapt to new customer demands. They do not really have a plan to deal with potential risks in the future.

Take-away is not the real solution

Mr. Duong's 9luv Cocktail Bar has been nestled next to old electronics stores on Ngo Tram Street since the end of 2020. Without a prime location, the bar chose the modelspeakeasy bar- Customers come to the restaurant by word of mouth.

“Initially, 9luv Cocktail Bar was a place with a romantic atmosphere, reserved for couples. After a while of operation, I realized that the love that the bar team brought was even broader than that. The bar became a place for young people who wanted to find a little bit of intoxication to temporarily forget the hustle and bustle of the city” - Duong shared with pride.

Currently, Duong is working in Nam Dinh and runs his bar remotely because he cannot travel between provinces. Duong's main occupation is a civil servant, opening a bar comes from a long-standing passion.

Duong's restaurant started operating with an initial investment of nearly 2 billion VND. Since May 2021, the restaurant has not been able to open to customers, the investment is gradually running out.

Fortunately, the landlord did not charge rent during the quarantine period. But with no income, Duong was forced to cut the staff in half from 8 to 4, and support the remaining staff with a portion of their salary during the recent quarantine period.

The Man Cave also shouldered the cost of paying staff salaries during the 5-month period of inactivity. “During the social distancing period, I also had a take-away alcohol service, although it was not very effective, but it still brought in a little cost to support staff,” Trung shared. “Because during the epidemic, The Man Cave had staff support, so the number of staff was still enough to operate normally when the shop reopened.”

Although widely introduced in recent times, the take-away form does not bring good income to the bar industry. Customers can choose to take away drinks service but clearly, square bottles of wine cannot bring enough emotions and complete experiences. Bars are where sipping wine, enjoying music and space are the most important factors.

“Customers who come to my shop always talk to each other like friends. They love the bartender, the owner and the family-like atmosphere here. I tried to sell take-away but it didn’t suit me so I stopped” - Duong shared more about 9luv Cocktail Bar switching to a take-away model to adapt to the pandemic.

According to the General Statistics Office, in the second quarter of 2021, 12.8 million people aged 15 and over nationwide were affected by the pandemic (including those who lost their jobs, had to take extended leave/rotational leave, reduced working hours, and reduced income). Many workers have quit their jobs and returned to their hometowns to avoid the epidemic. They may not return due to concerns about the epidemic and other personal difficulties they have experienced.

There is a huge shortage of staff in the service industry. While hotels and travel agencies can replace some of their staff with online services, it seems that bars cannot. Bars need bartenders - young, enthusiastic staff who can work in a night environment and will need months of formal training - to be able to operate stably again when the pandemic is over.

What motivates them to continue?

“Currently, after the social distancing period, what I worry about most is that people's consumption habits will change, and the restaurant will also have to come up with programs and changes to adapt,” Trung added.

On Vietnamese Women's Day, October 20, The Man Cave officially reopened but only received 50% of customers to ensure safety. The staff at The Man Cave have all been fully vaccinated against Covid-19 and wear masks and gloves when serving customers; customers also need to scan the QR code when arriving so the restaurant can capture information. Despite many difficulties, restaurant owners like Trung choose to continue staying because they are still passionate, enthusiastic and believe that the cocktail bar industry will revive.

“I have a point of view that any job or hobby that comes to me and I do, it is a fate. Cocktail bar is a new breeze in Hanoi that in recent years people have gradually imagined and defined correctly. Cocktail bar is suitable for many ages, everyone can experience it and from there, bar workers can reach more people, come into contact with more worldviews, helping people connect with each other more.”

“I don’t focus too much on the destination, it’s the journey that brings happiness. Now is the best time to start over. During the ‘coronavirus break’, I still regularly send greetings via handwritten letters to customers and everyone is very excited to come back to the shop.”

Conclusion

At the end of November 2020, the event "Hanoi Midnight Sale" was a success beyond expectations, with the number of visitors to shopping malls increasing by 110% - 213%, and revenue increasing by 200% - 314.7%. This event was a big boost for people and businesses to participate in the night-time economic model.

Before Covid-19 appeared, Hanoi had initially exploited its advantages to develop a night-time economic model, in which the bar industry played a significant role. However, "letting go" so that bars and service providers could fend for themselves in the face of the pandemic, will it miss opportunities to grow this economic model?

April Ha