International fast food chains fighting to increase their Vietnam market share are challenged by consumers leaning towards healthier options.
The inherent incompatibility of uniform taste offered by franchise restaurants and regional differences in taste have contributed to the downfall of Pho 24 and the poor sales of Pho Ong Hung, which offer many lessons to learn from.
The Ministry of Industry and Trade (MoIT) has licensed 17 foreign enterprises specialising in franchises to operate in Vietnam so far this year, according to statistics from the ministry.
Foreign fast food chains have been in Vietnam for more than 10 years and have annual revenue of trillions of dong. But many of them continuously take losses.
As fast food giants Lotteria and KFC report losses despite dominating the domestic market, their attractiveness to customers shows no signs of abating.
As fast food giants Lotteria and KFC report losses despite dominating the domestic market, their attractiveness to customers shows no signs of abating.
Fast food giants are still betting big on the Vietnamese market, despite ongoing losses and sluggish performance.
The Ministry of Industry and Trade has granted 206 franchise licences for foreign brands in Vietnam since 2007, reports from the ministry showed.
According to the Ministry of Investment and Industry (MOIT), 183 foreign brands have been granted a franchise in Vietnam, mostly from the US, Australia, the Republic of Korea (RoK) and the EU.
After securing a strong footprint in Vietnam’s southern metropolis of Ho Chi Minh City, fast-food giant McDonald’s is looking to consolidate its presence by moving its business to Hanoi. The long-awaited move will take place amidst the on-going expansion of international fast-food brands.
Foreign fast food chains in Vietnam are some of the most famous in the world, but many of them have had to leave or close some of their shops in the country.
The heyday of fast food chains seems to be over in Vietnam. The number of fast food shops has been decreasing in an era when people are trying to ‘live slowly’.
Six years after entering Vietnam, Subway, the world’s biggest fast food brand, is increasingly looking for franchising partners to reach the ambition of opening 50 restaurants in this market.
Franchising has grown into a prevailing investment channel with strong adaptability and a bright growth prospect in Vietnam.
Many investors who once intended to start up business with franchise contracts have given up because of the high investment rate.
Consumers in the Association of Southeast Asian Nations (ASEAN) are tightening their belts during a sluggish economic time by cutting their spending on fast food.
Catering is currently the most franchised business in Vietnam, accounting for 43.7% of the recorded franchise deals, according to the Ministry of Industry and Trade’s Domestic Market Department.
Street fast food is becoming a new business trend in Ho Chi Minh City.
Low-cost airline Vietjet Air and fast food chain Lotteria Vietnam signed a strategic cooperation agreement in Hanoi on March 13 with the aim of bringing significant added value to customers of both parties.
(VOV) - The Vietnam International Retail and Franchise Exhibition (VIETRF) running from October 30–November 2 in HCM City kicked off with 170 companies from 12 countries featuring many household name products and services.
