New York, May 21, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “Vietnam Food Service Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)” – https://www.reportlinker.com/p06074770/?utm_source=GNW
It has also had an impact on trade flows due to disruptions in international logistics and transportation and, in some cases, due to policy responses, such as import or export restrictions. There were approximately thirty-two disruptions in trade flows that affected both food and agricultural inputs, including the catering market.
However, on the other hand, the restaurant industry offering fresh and healthy meals through online food delivery had further stabilized the revenue stream in the market studied during the COVID-19 period in the country.
The rapid growth of the fast food industry in the country has led to an expansion of more food chains in the fast food sector, thus benefiting the entire market studied. This industry growth can be attributed to factors, such as the convenience and availability of lower-cost foods, which are expected in independent full-service restaurants.
Franchising and sub-franchising have become very popular tools for multinational and local players in the country. Restaurant chains, like KFC, are prime examples of the largest QSR chains in the country.
In order to compete with global foodservice restaurants, independent foodservice companies are introducing new offerings based on the local tastes and preferences of Vietnamese consumers. In addition, companies are focused on introducing new and innovative healthy foods with organic and natural ingredients in order to overcome the challenges facing industry players. In addition, the growing preference for street food by local consumers and tourists is helping the country’s independent food service providers to grow.
Main market trends
Growing presence of international fast food restaurants in Vietnam
In recent years, international fast food restaurants have been marked by a large scale growth of the Vietnamese fast food market due to the growing influence of the West which gave birth to the fast food culture in the country, which is expected to experience further growth in recent years. years to come.
According to industry experts, Vietnam’s out-of-home consumption share of Western food is around 35%, driven by foreign chains and Western franchises establishing their brands in Vietnam. Western restaurants are mainly located in District 1 of Vietnam, attracting a strong presence of expats and travelers, and higher mid-basket size transactions.
Vietnam has experienced incredible economic growth over the past decade which is one of the major factors driving the expansion of international fast food restaurants in the country and thus pushing the market forward. According to the Ministry of Investment and Industry (MOIT), 183 foreign brands have obtained a franchise in Vietnam, mainly from the United States, Australia, South Korea and the European Union.
Growing influence of the fast food channel in Vietnam
The growth of quick-service restaurants, coupled with the increase in out-of-home consumption, is mainly attributed to the working class population seeking take out at a reasonable pace. In addition, the growing number of millennials looking for economical spaces to have meals with their companions is driving the growth of the market.
In 2018, according to Dcorp R-Keeper, there were more and more (7,000+) fast food restaurants in Vietnam, compared to 540,000 food and beverage companies made up of 430,000 street vendors, 80,000 restaurants, and 22,000 cafes and bars. .
Foreign fast food chains are underperforming and facing strong competition from domestic players in this category, due to consumers’ strong preference for local taste and falling prices. However, few foreign brands, such as Jollibee, Lotteria and KFC, which were the first to enter the market, perform much better than new players, such as McDonald’s, Burger King or Subway.
The main players in the catering market enjoy a dominant presence in this region. It is dominated by gamers like Jollibee Foods Corporation, McDonald’s and Yum! Brands, and among others. There is fierce competition among food service providers based on price, quality of food service, calorie intake per meal, and healthier menu options. Restaurants from several food channels have started to change their business strategies. In addition, several players are increasing their sales by venturing into home delivery and online restaurant channels that are growing in popularity, particularly during the COVID-19 pandemic.
Reasons to buy this report:
– The market estimate sheet (ME) in Excel format
– 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06074770/?utm_source=GNW
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