Domestic fast food market is currently witnessing a fierce battle between the giants, without any Vietnamese businesses.
According to the evaluation of fast food market researchers, Vietnam is a very potential market . Vietnamese people have just formed the habit of eating Western fast food for about 15 years now. This shows that the geographical market is still very large. Accordingly, with a population of over 90 million, approximately 65% of which are people under 35, who are willing to spend money to enjoy unfamiliar dishes from fast-food outlets.
The fast food market in Vietnam mostly has big names in the world. They are Jollibee (Philippines), KFC (the US) and Lotteria (South Korea) in HO CHI MINH CITY. From 2004 to date, the number of these 3 major brands has risen rapidly. Lotteria is currently leading in number with approximately 146 stores, KFC has about 134 stores and Jollibee has approximately 30 stores. Additionally, the fast-food market has also added more great names such as Pizza Hut, Domino’s Pizza, Subway, and especially the second largest fast food brand in the United States – Burger King in 2012.
And at the beginning of 2014, the giant McDonald’s (USA) – one of the leading fast food brands in the world –is going to enter Vietnam market. It is forecasted to generate an exciting race between fast food brands to gain share market. Although there are not any restaurants in Vietnam yet, McDonald’s said that they’re going to open 100 ones in Vietnam in the near future.
Under the pressure from Mc Donald ‘s, Jollibee, KFC, and Lotteria have decided to close a few restaurants that are not working well to ease the financial burden. In contrast, Burger King is willing to spend a considerable amount of money to rent “privileged” premises of the opponents to rapidly expand store chains. Burger King currently has 17 restaurants and is pushing to grow. Averagely, Burger King opens two more stores per month, despite negative signals from the sales, Burger King is still expanding more store chains. According to several experts in the fields of F&B, the Burger King may accept the lesson “7 years of profits” of KFC, because in general, the percentage of people using fastfood is quite low. Some think that the loss of KFC in the past would be slighter than the unilateral development in the form of franchise which the VFBS co.,LTD is pursuing.
To expand and develop fast food store chains, businesses need to further develop their store systems in densely populated areas, shopping centres and schools. According to study, youngsters and students are those who have high demand of fast food. Besides, businesses should create a system of unique restaurants to attract people’s curiosity by using EBS block( Expandable Building System block ).
The fast food market competition is becoming increasingly fierce, to survive and develop in the market, the fast-food giants should have the right business strategy to create differences compared to other competitors.
Source: Zing News