Experts say there are several challenges: intense competition from the increasing number of domestic and foreign food companies, high prices (a burger goes for “four times a bowl of Pho”), and the fact that hamburgers and French fries are just not for Vietnamese people. Below are some major chains and their progress in Vietnam compared to other markets in Asia. Burger King Burger King has closed five restaurants in Ho Chi Minh City, Hanoi, and Danang in recent years, citing sub-optimal location, according to news reports, despite an ambitious $40-million investment plan upon its entry in 2012. At the time, Burger King expected to open 60 restaurants nationwide, as consumers were excited to try the famous hamburger from the west. However, five years later, the fast food chain has only reached a quarter of this target with 15 restaurants: seven in Hanoi and eight in Ho Chi Minh City. The reasons Burger King missed its original goal, according to experts, could be tough competition, high operating costs, and a misunderstanding of Vietnamese taste buds. “In the short term, hamburgers cannot become a popular choice for Vietnamese consumers,” said Nguyen Manh Tu, business development director of Blue Kite Food and Beverage Services Company Limited, which has the franchise rights to Burger King in Vietnam, in an exchange with the broadcaster VTV. Such an initial drawback would require fast food chains to adjust their menus or strategies. In the case of Burger King, after re-negotiating the franchising terms to reduce the projected… [Read full story]
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