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BUSINESS REPORT

chains are mostly small family-based busi- actually increased as they were considered
nesses with insufficient resources to take on MOST FREQUENTLY VISITED FAST-FOOD ‘essential’ businesses,” he added. “Businesses
CHAINS IN VIETNAM (2020)
the big players. that survive this pandemic will be stronger
and more resilient to future external shocks
50
Still growing Percentage like pandemics and economic recessions.”
To keep up with changing customer Generally speaking, fast-food is still a seg-
demand and to boost sales, many fast-food 40 ment of potential in Vietnam. According to
brands adopted their own development strate- VF Franchise Consulting’s figures, the fast-
gies. For example, KFC strives to “localize” food sector in Vietnam has only really begun
30
its menu to meet the tastes of local customers, to develop and grow in the past few years. In

with typical sauces or lunch sets for office 20 neighboring countries like Thailand, the
workers. Lotteria chose to focus on key items Philippines, and Indonesia, there are as many

like hamburgers instead of competing directly 10 as three to four-times more fast-food brands
with KFC’s fried chicken, diversifying its than in Vietnam, so the long-term prospects

menu with different combos depending on 0 are quite good. Many international franchisors
the time of day. KFC Lotteria Pizza Hut McDonald’s have taken note and are impressed with how

Vietnam’s fast-food market has shown Source: Q&Me, 2020 Vietnam managed the economic and health
signs of stronger development in recent times crises created by Covid-19, and are keen to
S thanks to the rise of food delivery apps. The enter the market. Brands from the US, the
Q&Me survey noted that, in 2020, “Now” was UK, South Korea, Thailand, and Japan continue
the most popular app for online fast-food with Mr. Ngo saying it presented difficult to express interest, including Little Caesars
orders, with 24 per cent of respondents opting financial challenges for businesses and con- Pizza, the third-largest US pizza chain in the
for it, followed by Grab Food (20 per cent). sumers, as people spent more time at home world, Donor Shack from the UK, Mango
Eighty-seven per cent of respondents order and ate at home more frequently, but not all Tree and COCA Hotpot from Thailand, and
online from fast-food chains, with KFC being food and beverage businesses suffered the many others. “With the economy expected
the most popular, with 52 per cent, followed same fate. “Fast-food chains, especially the to bounce back from a challenging 2020,
by Lotteria (30 per cent) and Pizza Hut (21 type of fast-food that can be ordered online Vietnam will continue to benefit from global
per cent). The pandemic also had a significant and delivered to the workplace or home, have confidence in its performance during the
impact on online orders from fast-food chains, been less affected in some countries, and sales pandemic,” said Mr. Ngo. %

APRIL 2021 | VIETNAM ECONOMIC TIMES | 29