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What benefits do customers get from the exit of a “big” milk tea chain?

There is fierce competition in the milk tea market. After the withdrawal of Ten Ren – a big brand from Taiwan (China) – a Vietnamese brand, Phuc Long, closed two stores in central HCMC. According to Ms Vo Thi Phuong Mai, Associate Director—Head of Retail Services, CBRE Vietnam, the rising leasing price affecting business performance is an important cause. According to a CBRE survey, leasing prices in the central area of HCMC increased by an average of 2–5%/year, with some areas increasing by 20–30%/year. Therefore, most brands often want to have a long-term lease of 5–7 years and accept a 10–15%/year price increase to reserve or accept long payment conditions. Ms Mai Vo added that leasing prices will continue to increase slightly in Q3 2019 due to the need for space to open stores during the Christmas period and the end of the year. This movement indicates that big milk tea brands will still be willing to pay high costs to lease space in the central area to attract customers. Therefore, the price of each cup of milk tea to consumers will not be easy to reduce.