In Focus
RESEARCH | Staff Reporter, Vietnam

Fast food chains fail to defeat local Vietnamese stalls

International fast food chains such as Burger King, Mcdonald’s, and Subway show underwhelming performance in Vietnam, as reported by Vietnam Net News.

Burger King has closed five restaurants in Ho Chi Minh City, Hanoi, and Danang in recent years, despite an ambitious $40-million investment plan upon its entry in 2012.

According to experts, the brand may have missed its original goal due to tough competition, high operating costs, and a little understanding of Vietnamese taste.

"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.

McDonald's is also seen to be growing slowly. Three years ago, McDonald's planned to open 100 restaurants within the decade with the average of 10 new restaurants each year. However, the chain now has only 15 restaurants, falling rather short of the target, according to news website.

The sandwich franchise, Subway, had set a goal of 50 restaurants in Vietnam by 2015. However, at present, there are only six of them in Ho Chi Minh City, as previously reported by VIR.

“Like other fast food brands, Subway entered Vietnam late. Initially, we had to adjust our strategies to fit the culture as well as market trends. It takes time for us to adapt to the differences in the Vietnamese market to get the desired foothold here,” Mark Mason McGrath, general director of Subway Vietnam, explained to VIR.

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Photo credit: CafeBiz

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