Opening a Vietnamese Restaurant in Japan: Where Should You Choose a Location to Attract Customers?
Tips for choosing a location to open a Vietnamese restaurant in Japan: comparing Vietnamese neighborhoods with areas popular among Japanese customers, ground floors with upper floors, and a detailed rental price guide updated through August 2026.
Aug 7, 2026·✍️ olablog·⏱ 12 min read
Tips for choosing a location to open a Vietnamese restaurant in Japan: comparing Vietnamese neighborhoods with areas popular among Japanese customers, ground floors with upper floors, and a detailed rental price guide updated through August 2026.
Opening a restaurant serving the flavors of home in the Land of the Rising Sun is a dream shared by many Vietnamese interns, engineers, international students, and families living in Japan. However, turning a culinary idea into a genuinely profitable business is a long journey, and the most important first step is finding and choosing the right location. Choosing the wrong spot, taking on an overly burdensome rent, or failing to reach the right target customers can leave your restaurant "as quiet as a temple" no matter how good the food is. In this practical guide, the OlaChill editorial team takes a detailed look at every angle: whether to choose an area with a large Vietnamese population or one frequented by Japanese customers, a location near a station or down a backstreet, and a ground-floor unit or an upper-floor space—along with a guide to actual commercial rents in major cities as of August 2026.
1. Choosing your target customers: A Vietnamese neighborhood or an area popular with Japanese customers?
Before viewing any property, the first question you need to answer is: Who are you selling to? Each customer segment comes with a completely different ideal location and business style.
Areas with large Vietnamese communities
In Tokyo and the Kanto region, neighborhoods such as Shin-Okubo (新大久保), Takadanobaba (高田馬場), Hirai (平井), Nishi-Kawaguchi (西川口 - in Saitama Prefecture), as well as the Yao and Ikuno areas of Osaka, are major hubs for the Vietnamese community.
- Advantages: There is a large pool of fellow Vietnamese customers. Authentic Vietnamese flavors—rich seasoning, shrimp paste, fermented anchovy sauce, and fresh Vietnamese herbs—are immediately appreciated without needing to be toned down for Japanese tastes. Promotions are also easy to run through Vietnamese social media groups in Japan.
- Disadvantages: Competition is extremely fierce. With dozens of pho, banh mi, and bun dau mam tom restaurants clustered close together, customers can easily compare prices down to the last thousand yen. Customer loyalty may be low if a competitor introduces a new dish or offers a discount.
Commercial centers and areas popular with Japanese customers
Neighborhoods such as Shibuya (渋谷), Shinjuku (新宿), Ebisu (恵比寿), and Ginza (銀座) in Tokyo, or Umeda (梅田) and Namba (難波) in Osaka, attract Japanese office workers, young people, and international tourists.
- Advantages: Japanese customers generally have greater spending power and are willing to pay 1,200 - 1,800 JPY (~190,000 - 290,000 VND) for a bowl of pho or a lunch set (ランチ - ranchi). Japanese customers also tend to dine out regularly and behave courteously.
- Disadvantages: You will need to adapt the flavors—less spice, less pungent fermented sauces, and more delicate seasoning—and provide the refined level of service expected in Japan. Rents in these areas are very high.
Advice from OlaChill: If you have limited capital and want to "start small and grow gradually," serving Vietnamese customers in areas around smaller stations is the safer option. If you have substantial capital, a well-trained kitchen team, and want to build a long-term brand, target Japanese customers in central locations.
2. Comparing locations: Near the station (Ekichika) vs. down a backstreet (Rojiura)
The distance from the station to the restaurant is a critical factor affecting foot traffic—known in Japanese as 人通り (hitodori).
Commercial units near the station (駅近 - Ekichika)
These are locations within a walking radius of under 3 minutes from the station entrance.
- The biggest advantage: You can reach the maximum number of passing commuters, students, and walk-in customers (一見さん - ikkensan). The address is also easy to find on Google Maps.
- The challenge: Rent (家賃 - yachin) and deposits are extremely expensive. Competition from major Japanese restaurant chains is fierce.
Commercial units in backstreets (路地裏 - Rojiura)
These are locations on small side streets, 7 - 12 minutes on foot from the station.
- Advantages: Rent is only 40% - 60% of that for a similarly sized unit near the station. The quieter setting is suitable for late-night drinking establishments (居酒屋 - izakaya) or specialized family restaurants.
- Challenges: You must be good at digital marketing, advertising on SNS platforms (Facebook, TikTok, Instagram), and optimizing your Google Maps listing (MEO) so customers can find you. If you rely solely on passing foot traffic, the restaurant will almost certainly be empty.
3. Ground-floor frontage (1階) vs. basement / upper floors (地下・階上)
Many first-time restaurant owners wonder: "Why are some restaurants on the 3rd or 4th floor still packed with customers?"
Ground-floor units (1階 - Ikkai)
- Higher walk-in rate: Customers can look through the windows, see the interior and food, and decide to come in immediately.
- Make the most of the frontage: It is easy to install a prominent sign (看板 - kanban), a display case showing food samples (サンプルケース - sanpurukesu), or a takeaway banh mi counter (テイクアウト - teikuauto).
- Rent: Always among the highest in the building.
Basement units (地下 - Chika) or upper-floor units (階上 - Kaijo)
- Lower costs: Rent is 30% to 50% cheaper than a ground-floor unit of the same size.
- Essential requirements: You need clear signage at the entrance on the ground floor, a convenient elevator, and—most importantly—highly appealing food photos online. Vietnamese izakaya-style restaurants and Vietnamese buffets on the 2nd or 3rd floor are very common once they have built up a loyal customer base.
4. Estimated commercial rents by city (As of August 2026)
In Japan, commercial floor space is measured in 坪 (tsubo), with 1 tsubo ≈ 3.3 m².
The table below summarizes average commercial rents per tsubo and initial deposit requirements in major cities as of August 2026:
| City / Area | Rent/坪/month (JPY) | Converted to VND (~160 JPY/VND) | Deposit/security deposit (保証金/敷金) | Suitability for a Vietnamese restaurant |
|---|---|---|---|---|
| Tokyo - Central (Shinjuku, Shibuya, Ginza) | 30,000 - 65,000 JPY | ~4.8 - 10.4 million VND | 8 - 12 months’ rent | Japanese customers; upscale cuisine / modern pho |
| Tokyo - Outer areas/Vietnamese hubs (Takadanobaba, Hirai, Kamata) | 15,000 - 30,000 JPY | ~2.4 - 4.8 million VND | 6 - 10 months’ rent | Vietnamese customers + Japanese customers who enjoy casual dining |
| Osaka - Central (Umeda, Namba, Shinsaibashi) | 22,000 - 45,000 JPY | ~3.5 - 7.2 million VND | 6 - 10 months’ rent | Tourists + Osaka office workers |
| Osaka - Suburbs/Residential areas (Yao, Higashiosaka) | 10,000 - 20,000 JPY | ~1.6 - 3.2 million VND | 4 - 8 months’ rent | Vietnamese residents and families |
| Nagoya (Sakae, Meieki) | 14,000 - 28,000 JPY | ~2.2 - 4.5 million VND | 6 - 8 months’ rent | Vietnamese restaurant combined with an izakaya-style venue |
| Saitama / Chiba (Nishi-Kawaguchi, Funabashi) | 11,000 - 22,000 JPY | ~1.7 - 3.5 million VND | 4 - 6 months’ rent | Primarily serving Vietnamese interns and engineers |
Initial commercial lease costs (As of August 2026)
To rent a 15 tsubo (~50 m²) commercial unit in Tokyo at 250,000 JPY/month, the amount you need upfront is not limited to 1-2 months’ rent, as it might be when renting a home. In practice, you will need to cover the following mandatory costs:
- 保証金 (hoshokin) / 敷金 (shikikin) - Security deposit: Usually 6 to 10 months’ rent = 1,500,000 - 2,500,000 JPY.
- 礼金 (reikin) - Key money: 1 to 2 months’ rent (non-refundable) = 250,000 - 500,000 JPY.
- 仲介手数料 (chukai tesuryo) - Brokerage fee: 1 month’s rent + tax = 275,000 JPY.
- 前家賃 (maeyachin) - Rent paid in advance: 1 - 2 months = 250,000 - 500,000 JPY.
- 造作譲渡料 (zosakujotoryo) - Transfer fee for existing fixtures and equipment (for an 居抜き - Inuki property): 500,000 - 2,000,000 JPY, depending on the condition of the kitchen and furniture.
=> The total initial cost of signing the commercial lease can range from 3,000,000 to 6,000,000 JPY (~480 - 960 million VND).
Cost-saving tip: Prioritize looking for an 居抜き (inuki) property—meaning a former restaurant whose previous tenant has left behind the exhaust system, plumbing, and kitchen equipment. This can save you between 5,000,000 and 10,000,000 JPY compared with fitting out a bare-shell property (スケルトン - sukeruton).
5. Practical lessons from successful Vietnamese restaurants in Japan
Looking at the success of Vietnamese banh mi chains, pho restaurants, and Vietnamese eateries in Japan over the years, there are 3 hard-earned lessons about choosing a location that you should keep in mind:
Lesson 1: "Fast banh mi/pho" vs. "sit-down drinking establishment"
- Takeaway / quick banh mi model: Requires a small unit (5 - 8 tsubo ~ 16 - 26 m²), necessarily on the ground-floor frontage near a station entrance or an intersection with heavy foot traffic. The rent per tsubo is high, but the total monthly rent remains low because the space is small.
- Vietnamese drinking establishment / hot pot and barbecue model: Customers come in groups, stay for a long time (2 - 3 hours), and spend heavily on drinks. This model does not require an expensive ground-floor location. Choosing a spacious 2nd-floor or basement unit (15 - 30 tsubo) helps maximize dining space while reducing fixed monthly costs.
Lesson 2: Don’t forget the legal procedures before paying a deposit
Before putting down a deposit, you must carefully check whether the property can be licensed:
- Food service business license (飲食店営業許可 - inshokuten eigyo kyoka): Issued by the local Health Center (保健所 - hokenjo). The kitchen must have 2 separate sinks, a compliant ventilation system, and a separate restroom area.
- Fire prevention manager (防火管理者 - boka kanrisha): If the restaurant has a capacity of 30 people or more, the building must have someone with this certification.
- Personal documents: You will need to prepare a Certificate of Residence (住民票 - juminhyo) and a valid status of residence that permits business activities (Business Manager Visa - 経営・管理ビザ), or have a Japanese national or permanent resident serve as the representative.
6. Conclusion and valuable advice for new restaurant owners
Choosing a location for a Vietnamese restaurant in Japan is a delicate balancing act between cost and customers. Don’t rush into signing a lease simply because the rent is cheap if the area has little foot traffic or is not along your customers’ usual routes. At the same time, don’t take the excessive risk of shouldering rent that exceeds 15% of your projected revenue.
Survey the property at different times throughout the week—morning, afternoon, and evening, on weekdays and weekends—to count the actual 人通り (hitodori) before signing the contract.
For more useful information about life, legal matters, and business in Japan, check out the practical articles on OlaChill Blog or explore the OlaChill homepage. If you need to take relatives or business partners to view locations in the capital, the Day Tours from Tokyo service will help you travel flexibly and save time.
We hope you find the perfect location and build a thriving business in Japan!
Frequently Asked Questions
Q. Can Vietnamese nationals holding an Engineer Visa or an Intern Visa sign a lease in their own name to open a restaurant in Japan?
Answer: Under the regulations of Japan’s Immigration Services Agency, Engineer or Intern visas do not permit holders to directly operate a separate for-profit business outside their authorized field of work. To open a restaurant in your own name, you need to change to a Business Manager Visa (経営・管理ビザ) or partner with someone who has permanent residency or Japanese nationality and have that person register as the legal representative.
Q. Is it mandatory to take over the interior and equipment of an 居抜き (Inuki) property when opening a restaurant in Japan?
Answer: No. You can choose a bare-shell property (スケルトン - sukeruton) and design it as you wish. However, construction costs for a bare-shell property are usually 3-4 times higher than for an 居抜き (Inuki) property, and the finishing work takes longer.
Q. Is the 保証金 (hoshokin) deposit fully refundable when the commercial lease expires?
Answer: Usually, it is not refunded 100%. Commercial leases in Japan commonly include a deduction clause (償却 - shokyaku), such as deducting 10-20% or 1-2 months’ rent when the contract is terminated. You may also be responsible for restoring the property to its original condition (原状回復 - genjokaifuku) if this is stipulated in the contract.
Q. What percentage of revenue should rent account for to be considered safe for a Vietnamese restaurant in Japan?
Answer: In Japan’s F&B industry, the ideal rent-to-revenue ratio is generally 8% to 12% of total monthly revenue. A ratio above 15% will place significant financial pressure on ingredient and labor costs.
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