return icon

World fast-food revenues slow in Vietnam, struggling to lure local consumers

The downward trend in the growth rate of the leading fast-food chain stemmed from market changes, consumer’s mindset as well as the emergence of alternative segments.




A KFC restaurant in Hanoi. Photo: Bloomberg



According to Vietnam Industry Research and Consultancy (VIRAC), a market research firm, the revenues of five leading fast-food chains in Vietnam including KFC, Lotteria, Jollibee, Pizza Hut and The Pizza Company totaled VND5 trillion (US$214 million) in 2018, up 13% compared to the previous year, but significantly lower than 24% of the 2016-2017 period.

 KFC and Lotteria, which hold the largest share in the market, have earned trillions of dongs, but started to see contraction in revenue growth, according to VnExpress.

KFC Vietnam Joint Venture Company’s 2018 financial report showed that the chain gained VND1.48 trillion (US$63 million) in revenue, an increase of 7.5% over 2017, slowing from an 18.3% expansion a year earlier.

Lotteria, KFC’s rival, also endures a similar situation as its growth rate in 2018 was just 2%, a dormant rise compared to 17% of the previous year.

Jollibee’s revenue was just half of the two aforementioned fast-food giants, however, its performance seems to be more positive. In 2018, Jollibee Vietnam collected nearly VND800 billion (US$34.2 million) in revenue, up 33% year-on-year, and retaining a stable growth rate.

Compared to the fried chicken segment dominated by KFC and Lotteria, the pizza segment has smaller scale of sales.

The revenues of Pizza Hut and The Pizza Company were VND617 billion (US$26.3 million) and VND496 billion (US$21.2 million), respectively in 2018. While Pizza Hut, the leading pizza chain in Vietnam, saw its growth rate up only 6% compared to 2017’s, the smaller The Pizza Company “sprinted” with the growth rate of nearly 72%.

According to some market analysis firms, the downward trend in the growth rate of the leading fast-food chain stemmed from market changes, consumer’s mindset as well as the emergence of alternative segments.

A Euromonitor report showed that KFC and Lotteria still retain their lead, however their growth rates remain dulled over the past two years partly due to the expansion of the convenience stores which also serve fast-food, customers changing their preference from time-saving or convenience to healthy foods.

CNBC recently pointed out it’s the rather pricey menu compared to local fast dining which makes fast-food chains in the world namely McDonald’s and Burger King flop in Vietnam.

In addition, Vietnamese food is shareable which suits the local dining habit while hamburgers of McDonald’s and Burger King are not easy to be shared.

Those world fast food chains are holding a rather small share of the fast dining market. While McDonald’s and Burger King have more than 36,000 and 16,000 locations across the globe, respectively, there are only 17 McDonald’s stores and 13 Burger King’s in Vietnam. Hanoitimes

Ha An

Fast food in fight to win over locals

Fast food in fight to win over locals

Foreign fast food companies are lagging behind their own expansion plans in Vietnam due to the fierce competition with major rivals in the same segment and local competitors.

KFC, Lotteria battle for market share at street corners, supermarkets, malls

KFC, Lotteria battle for market share at street corners, supermarkets, malls

KFC, Lotteria and McDonald’s are the three biggest players in the fast food market.

Burger King slammed for ‘racist’ ad promoting Vietnamese burger

Burger King slammed for ‘racist’ ad promoting Vietnamese burger

Burger King has come under fire for an advertisement that many deemed racist against Asians.  


GDP growth of 3.32% in Q1 nears lowest level in 13 years

Vietnam’s gross domestic product (GDP) grew by 3.32% in the first quarter of the year, higher only than the growth rate of 3.21% recorded in the first quarter of 2020 in the 2011 to 2023 period, according to the General Statistics Office.

Four Japanese banks to provide US$300 million for Vietnamese renewable energy

Four Japanese banks are set to co-finance a total of US$300 million to provide credit lines to power producers using renewable energy in the nation as part of efforts to help the growing country in its decarbonising process.

15 short stories by Vietnamese writer published in RoK

A collection of 15 short stories written by local author Nguyen Huy Thiep were introduced to Korean readers by Wisdom Publishing House in March.

Hanoi’s ancient pagoda in the red-silk cotton tree season

In March, red-silk cotton trees bloom, showing off their beauty at the thousand-year-old Thay Pagoda in Quoc Oai district in Hanoi.

VN Government calls for broad-based measures to help realty sector

The Vietnamese Government has recently urged ministries to take measures to help the realty sector get back on track and sustain its healthy growth.

EC drops health certificates requirement for Vietnamese noodles

The European Commission (EC) has recommended removing Vietnamese rice noodle and vermicelli brands from conditions that require health certificates and 20 per cent random testing at the port of entry.

Ministry of Industry and Trade proposes draft on cross-border trade

The Ministry of Industry and Trade (MOIT) is seeking public comments on a legal draft amending Decree No14 on cross-border commercial activities.

Leaders of aviation firms to be disciplined if employees committed wrongdoings

The Civil Aviation Administration of Vietnam (CAAV) has just released directive 1480, on enhancing smuggling and commercial fraud prevention among aviation employees.

Golden tourism route links six destinations of Vietnam, China

A golden tourism route connecting six destinations of Vietnam and China was launched in Hanoi on March 28, expected to help the two countries enhance cross-border tourism links.

Vietnamese Foreign Minister holds online talks with Chinese counterpart

Minister of Foreign Affairs Bui Thanh Son held online talks with Chinese State Councilor and Foreign Minister Qin Gang on March 28, during which they agreed to intensify all-level exchanges.

Vietnam International Travel Mart 2023 to spotlight cultural tourism

The Vietnam International Travel Mart (VITM) themed “Cultural tourism” will take place on April 13-16 at the Cultural Friendship Palace in Hanoi, featuring 450 pavilions from over 50 localities nationwide, and 15 countries.

Vietnam, ILO sign decent work country programme for 2022 - 2026

The Decent Work Country Programme Vietnam 2022 - 2026 was signed between representatives of the Vietnamese Government, workers, and employers and the International Labour Organisation (ILO) in Hanoi on March 28.

Vietnam vows to control cross ownership in banks

The tightening of control over cross ownership aims to stop crises at banks.

Largest French cuisine festival in Vietnam comes to Hanoi in April

The largest French cuisine festival in Vietnam “Balade en France” (Walk in France) will return to Hanoi on April 14-16, following the success of the 2018 and 2020 editions, the French Embassy announced on March 28.

Vietnam targets 100% of Internet subscribers using IPv6 service by 2025

A conference to review the first phase of the programme on the transition to Internet Protocol version 6 for state agencies (IPv6 for Gov) was held at the Vietnam Internet Network Information Centre (VNNIC) in Hanoi on March 28.