After 3 years of operating in Ho Chi Minh city, McDonald's has finally opened its first restaurant in Hanoi on December 02.
McDonald’s is increasing pressure against competitors with its first restaurant in Hanoi.
In Ho Chi Minh city, McDonald's currently has 16 restaurants, while in the first year coming to this city, the fast food chain has opened three restaurants, and the company is expected to have similar moves in Hanoi. In the global scale, for over 60 years, McDonald's has been the pioneer with big influence to the strategies of competitors in fast food industry. Among them, Burger King is the main competitor of McDonald's. At Vietnam, as the fast food market is growing in two-digit number with significant contribution from McDonald's. With the new restaurant in Hanoi, it is expected to have certain impact to other competitors, and Burger King is no exception.
When first coming to the Vietnam's market in 2012, BKV, the franchisee which brought Burger King to Vietnam originally planned for the quick expansion with the opening of multiple restaurants in golden location for customers' easy access and identification. However, after 5 years, Burger King has now been more cautious. Instead of focusing on the increase of number of restaurants, the company has adjusted its business strategy to efficiency. Burger King now has 13 restaurants, (5 in Hanoi and 8 in Ho Chi Minh city) compared to 18 restaurants in 2012. In Hanoi, Burger King also infiltrated the Hanoi market with restaurants opened in golden locations.
Advantage of street food in Vietnam is cheap, tasty and quick preparation.
A change in Burger King's strategy partially came from Restaurant Brands International (RBI, owner of Burger King), which is undergoing the restructuring process when acquiring other fast food brands, notably the 1.8 billion deals with Popeyes Louisiana Kitchen and 12.5 billion USD with Tim Hortons 3 years ago. After completing this process, RBI has become the third largest fast food restaurant chain in the world.
In parallel with more fast food brands coming to Vietnam, more and more brands are facing difficulties in maintaining market shares or closing down restaurants, due to the fierce competition from street food, which is plentiful and diversified. Advantage of street food in Vietnam is cheap, tasty and quick preparation. So people can easily grasp a few street food dish in just few minutes. Moreover, with the introduction of food review websites such as Foody or Lozi, street food is more and more popular.
According to representative of Burger King, previously, the market shares for fast food has been narrowed due to the eating habits of local customers. As such, brands like Lotteria and KFC still dominate the market thanks to offering menu suitable with tastes of local customers. Meanwhile for Burger King or McDonald's, it is difficult and time consuming to diversify the menu in accordance with local taste, as they still have to ensure the international standard. Especially, it is very hard for them to search for suitable ingredients suppliers.
Despite these difficulties, with carefully planned strategies to infiltrate Vietnam's market, Burger King and McDonald's have shown confidences in their own market shares, as the Vietnam's food market is still growing with young population and stable economy.
- Wendy's returns to UK this week with fast food chain releasing brand new menu
- Nando's fires up the grill as more fast food chains reopen
- Wendy's to rival McDonald's and Burger King as fast food chain returns to UK
- Two growing Bay Area restaurants, Malibu's and Amy's, serve craveable fast-food burgers - just without the meat
- Yay or nay? US fast-food giants now offer Chinese regional food
- Are Drive-Thru-Only Restaurants the Future of Fast Food?
- Pompeii excavation reveals fast food diet of ancient Romans
- Fast food worker says homophobic slur on customer's receipt was 'computer glitch'
- Investors' thirst for Oprah-backed oat milk a strong endorsement for eco-friendly food brands
- Defeated For Now – Is The FAST ACT (AB 257) Gone But Not Forgotten?
- Eat like a local: a tour to explore Saigon's street food scene
- Where to find the Bay Area's best Korean food
International fast food brands to compete with street foods in Vietnam have 750 words, post on hanoitimes.vn at December 5, 2017. This is cached page on Talk Vietnam. If you want remove this page, please contact us.