Oct 31, 2012

South Korea’s fast-food giant Lotteria will postpone franchising deals in Vietnam to 2013.

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“Due to franchising complications and Vietnam’s tough economic climate, Lotteria has decided to postpone concessing its trade name to 2013,” said Cho Young Jin, general director of Lotteria Company Limited.

Lotteria first mulled over franchising deals with Vietnamese firms in 2007 after it opened 30 outlets in the country. However, Lotteria revealed that the current time was inappropriate for the company to franchise partly because its target of opening 100 outlets in Vietnam was already achieved.

“Other prominent brand names such as McDonald’s and Burger King are to set up their chains of fast-food outlets in Vietnam. Burger King once stated that an outlet should be opened for each 160,000 people. We have the same strategy,” Jin said. “That shows that Vietnam is a potential market. In the coming period, Lotteria will simultaneously carry out its investment expansion and franchising strategy aiming at growing its presence in the Vietnamese market.”

vir.com.vn


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