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How are US fast-food chains doing in Vietnam?

VietNamNet Bridge - The Vietnamese market with its limited number of consumers accustomed to western food, has still been able to attract fast food giants from the US.
VietNamNet Bridge - The Vietnamese market with its limited number of consumers accustomed to western food, has still been able to attract fast food giants from the US.


Having been present in Vietnam since 2000s, the companies have been expanding their networks in the country.

Subway has been selling sandwiches and salads to Vietnam since 2010 and has opened five shops in HCMC, the country’s commercial hub, over the last six years.

Mark McGrath, general director of Subway Vietnam, said Subway hopes to have 20 shops in Vietnam in the next three years through both franchise contracts and opening shops itself. A franchisee would have to pay $110,000 in initial fee. 

Subway Vietnam has to import most of the materials needed to make sandwiches, except some vegetables from Da Lat City, Vietnam.

The Vietnamese market with its limited number of consumers accustomed to western food, has still been able to attract fast food giants from the US.
Mc Donald’s officially opened its first shop in Vietnam in 2014. The country is one of its 65 franchise markets in the world.

While the fast food chain said it would open 100 shops after 10 years in Vietnam, McDonald’s has only eight shops in HCMC after two years.

There are eight Starbucks shops in HCMC and four in Hanoi which all employ 220 workers.

It plans to open many more shops in the two largest cities of Hanoi and HCMC in the time to come and then in Da Nang, Hai Phong, Nha Trang, Vinh and Vung Tau.

Unlike McDonald’s, KFC is the ‘early bird’ in the Vietnamese market: it first appeared in Vietnam in 1997.

Though facing big challenges in Vietnam, incurring losses the first seven years  loss in the first seven years of operation, KFC, with its market strategy, has opened more than 140 shops in 19 cities and provinces.

Burger King joined the Vietnamese market in 2011 through BKV, a subsidiary of IPP Group, as a franchise partner.

The chain now has 20 shops in Hanoi and HCMC.

Another subsidiary of Yum!Brands - Pizza Hut – appeared in Vietnam in 2007 and has developed 50 Pizza Hut restaurants in the country since then.

Dunkin’ Donuts opened in Vietnam in November 2013, joining hands with VFBS, a subsidiary of IPP Group.

Another subsidiary of IPP Group has been cooperating with Domino Pizza to develop the fast-food retail chain in Vietnam since 2010. Over 20 Domino Pizza shops have opened in Vietnam.

Dairy Queen and The Coffee Bean & Tea Leaf, the ice cream and coffee chains, have been thriving in Vietnam since they arrived here.



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