International fast-food chains combating to increase their Vietnam marketplace share are challenged by customers leaning towards healthier alternatives.
South Korea’s Lotteria had the highest revenues in the closing 12 months, VND1.56 trillion ($66.6 million), followed by American chain KFC, which had VND1.Forty-eight trillion ($63.2 million).
But each fast-food chain experienced a slower increase. Lotteria’s sales grew by 2 percent in the last 12 months compared to 17 percent in 2017 and KFC’s by 7. Five percent compared to 18.3 percent in 2017.
Market studies firm Euromonitor said in a recent document that international gamers dominate the limited-carrier restaurant marketplace in Vietnam because local impartial chains are typically small circles of relatives-primarily based corporations with insufficient assets to take on the prominent players.
But, as a whole, fast meal chains are experiencing a slower boom. Market observers stated that one factor might be that Vietnamese eating habits are converting, with health being prioritized over convenience.
According to research firm Vietnam Industry Research and Consultancy, JSC, KFC, Lotteria, Jollibee, Pizza Hut, and The Pizza Company reported combined revenues of VND5 trillion ($213.Five million), up 13 percent from 2017 and 24 percent from the previous year.
Market research company Nielsen stated in a recent document that a significant percentage of Vietnamese customers choose proper health over monetary wealth as a signal of achievement.