The wait continues for Hanoi Hannah Elwood

There's good news and bad news for those hanging out for Hanoi Hannah Elwood.

After a seven-month wait for City of Port Phillip building approval, and before even a nail was hammered, director Simon Blacher says the partners realised the site would be too small.

"It was supposed to be quick and easy but it turned into a long and frustrating wait," says Blacher, an Elwood local for the past 10 years.

"It wasn't feeling right and the more we went into it, the more we realised it was the wrong site."

But it's not over for an Elwood branch of the popular Vietnamese hawker restaurant, which had been expected to open early this year.

The team behind the Windsor operation (and its sister restaurants Tokyo Tina and Saigon Sally), is now on hunt for a bigger location.