KFC and Lotteria are popular, but blame high overhead costs for their millions of dollars in losses over the past few years , Photo: Dung Minh Giants report business losses Active in Vietnam since the 1990s with a 26-per-cent annual growth rate, KFC has expanded its scale to 140 stores across the country and holds 60 per cent of Vietnam’s fried chicken market. Lotteria, entering the country since 2004, has also quickly cemented its position holding 60-70 per cent of the hamburger and sandwich market with 220 stores nationwide. Taking advantage of being fast food pioneers and offering acceptable priced dishes, good service, and clean spaces, KFC and Lotteria have continued to hold their positions in the market, despite new players, including McDonald’s, Jollibee, and Burger King, all competing for customers. The latest financial reports of KFC and Lotteria recorded revenues of trillions of VND. KFC in 2015 and 2016 reached an average revenue of VND1.2 trillion ($53.1 … [Read more...] about Locals ignore fast food losses
Price of fast food
The Hanoitimes - For many years, both KFC Vietnam and Lotteria Vietnam, and to a lesser extent Jollibee, posted revenues of millions of USD but still sustained losses. Despite being the leading fast food brand in Vietnam, South Korea-based fast food chain Lotteria has been reporting losses for years, accumulating to a loss of VND413 billion (US$17.85 million) by the end of 2016, according to newswire CafeF. Illustrative photo. Jollibee, a Filipino multinational chain of fast food restaurants, also faces a similar situation, albeit with a more modest loss, while KFC witnessed ups and downs in its business performance. According to a report released by Euromonitor in 2016, fast food ranked third in term of growth rate among consumer foodservices in Vietnam's food industry, trailing behind restaurants and street stalls. However, in terms of revenue, fast food ranked second only behind restaurants. For many years, both KFC Vietnam and Lotteria Vietnam, … [Read more...] about Leading fast food brands in Vietnam report consecutive losses
Hanoi Times - KFC restaurant located on 209, Le Duan Street was nearly crowded with people this weekend afternoon, above 80% of who were teenagers. They were enjoying the good smell of fried chicken, eaten with fried potatoes and drink called lovely “industrially eat” Thu Lan, a salesclerk of this restaurant, said that young people liked to come here due to its quite, modern style from arrangement and decoration to way of serving, reasonable price(about VND 35,000-60,000 per dish, including food and drink). So, not only officers, businesses but also a lot of students have chosen fast foot stores to meet each other or even to celebrate their birth parties. ‘The KFC attracts averagely about 200-300 customers a day, sometimes up to 1000 people’, she added. Having been brought into Vietnam since 1990, fast-food has quickly become favorite food of many groups of Vietnam customers, rather strongly developed with lots of well-known trademarks such as KFC, … [Read more...] about Fast food attracting Vietnamese youth – Food – Travel
VietNamNet Bridge - Vietnamese people are accustomed to fast food brands such as KFC, Lotteria and Jollibee. In recent years, the fast food market of Vietnam welcomed more foreign brands like McDonald's and Burger King. However, they donot seem to bemeeting the expectations of investors. Coming to Vietnam in 1998, Lotteria is now leading the fast food industry in the country with 211 restaurants in more than 30 provinces and cities. Along with many other subsidiaries of the Lotte group in Vietnam, this brand has become familiar to many Vietnamese people. According to Cafebiz, by the end of 2015 the number of Lotteria restaurants in Vietnam was 207, compared to 140 stores only in late 2012. The current number is 211. Thus, from 2013 to 2015, Lotteria chain grew strongly, with nearly 70 new stores. On average more than 20 new stores wopened each year. However, the market does not seem vibrant as before. Lotteria opened only four new stores in the last six months, a modest figure … [Read more...] about Is the golden age for fast food over?
Hoang Phi A lot of big brands in the fast-food industry are seen racing to open new stores for business expansion at home. Burger King last Tuesday opened its 15th store in Bien Hoa City in the southern province of Dong Nai just one day after Starbucks Coffee had marked its six-month entry to Vietnam with the second store in HCMC. Domino's Pizza also put into operation its latest store in HCMC's Tan Binh District on Sunday. Similarly, Baskin-Robbins on July 26 inaugurated its first store in Hanoi, which is the 15th store in Vietnam after one and a half years entering the country. The store opening in Hanoi is to prepare for the launch of a many others in Danang, Haiphong, Can Tho or Nha Trang in a bid to have 50 stores in operation in 2015 as planned. Specially, the world's biggest fast-food store chain McDonalds plans to open its first store in Vietnam early next year, which is expected to make the local market more bustling then. To lure customers, industry insiders now are … [Read more...] about Fast-food franchise market rages on