While global fast food brand names such as KFC, Lotteria, Jollibee, and
Subway have become increasingly familiar to Vietnamese consumers, the local
fast food market shares are expected to be rearranged as more players are
jumping in the game.
Burger King, a global chain of
hamburger fast food restaurants headquartered in the US, will mark its entrance
to Vietnam by inaugurating a restaurant in Ho Chi Minh City on October 20.
The US giant has proved
determined to explore the Vietnamese market as it plans to open as many as 12
restaurants in the last three months of this year. Five will be opened in Ho
Chi Minh City, three in Hanoi, and one in Danang, besides three other stores
set to open at the country’s largest airports.
Burger King has entered under the
franchise model, and the total capital to develop its chain across the country
is estimated to be as much as $40 million, according to beverage company Canh
Dieu Xanh, which purchased the franchise.
Earlier in August, another
American restaurant chain, Johnny Rockets, also decided to enter Vietnam by
seeking partners for the franchise, after having conducted four years of market
research in the country.
Johnny Rockets has targeted to
set up 10 restaurants in Vietnam in the coming years, its chairman said in a
statement.
Yet many other global players
have also eyed an entrance into what analysts said is a potential market for
fast food with its young population who are open to exotic food and have
increasing incomes.
A delegation including chief
officials of McDonald’s worked with local authorities in late August to seek
investment chance, and has revealed that they may open their very first
restaurants in Ho Chi Minh City and Hanoi in the next two years.
Starbucks, the Italian-style
coffeehouse chain based in Seattle, has also planned to enter Vietnam next year
after penetrating India, and expanding its system in China.
Rearranging market shares
As many giant global fast food
chains are expected to become newcomers in the local fast food market, those
who have already established a considerable presence in the country are ready
to embrace the future harsh competition.
KFC, which arrived in Vietnam as
early as 1997, now possesses a chain with 125 stores nationwide, with a growth
rate of 20 to 30 new restaurants per year.
The world's largest chain of
fried chicken fast food restaurants has redecorated its Vietnam stores to be
more open and attractive to young consumers.
Meanwhile, its rival in the field
of fried chicken, South Korea’s Lotteria, has also been adjusting its chain to
be more adaptive to local culture.
“We will open new restaurants
with wider areas and equip them with Internet connected computers. We want to
provide spacious and comfortable places for local youths to get together, or
even study there,” said marketing director Truong Ham Liem.
Lotteria currently has 124 stores
countrywide, and is trying to reach the 140 mark by the end of this year.
The market also has other growing
players such as Jollibee, which has so far opened 30 stores, and pizza restaurants
Pizza Hut, Alfrescos, and Pizza Inn.
Tuoi Tre
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