Consumer Foodservice in Vietnam
Euromonitor International's Consumer Foodservice in Vietnam report examine stand-alone restaurants and eating establishments in which the consumer can freely choose to eat. The report looks at market trends by sector (cafes/bars, full-service restaurants, fast food, home delivery and street stalls). It profiles the leading companies in the market and analyses factors influencing eating out patterns. Forecasts illustrate how the market is set to change
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Tables: 77 | Publication date: Jan 2008
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
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Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent
Executive summary
Another Good Year for Consumer Foodservice
During 2006, consumer foodservice in Vietnam continued to see a higher growth rate than in most other countries in Asia, bar Indonesia. A fast-growing domestic economy has resulted in more jobs and higher disposable income, which enables consumers to visit consumer foodservice outlets more often. Consumers have also been enticed by the growing availability of foreign cuisines and dishes. Hence, all consumer foodservice formats saw an increase in sales and number of outlets. Specifically, cafés/bars witnessed the highest growth rate in both value terms and the number of outlets, supported by the operators’ creativeness in offering new eating experiences at affordable prices, and customers’ desire to socialise with one another at cafés/bars frequently.
Young and Rich Customers Having a Great Impact on Sales
Young customers form the largest group of foodservice consumers in Vietnam. As early adopters to new formats and new stores, they often lap up as well as set the trends in foodservice development. In addition, they have the desire to meet with friends at foodservice outlets more often than older people and have a greater propensity and ability to spend on slightly more upmarket outlets. As a result, many new outlets that were opened are nicely designed and professionally operated so as to primarily attract young people. There is also another category, which are luxurious, premium outlets, which typically target customers with very high income.
Tougher Competition
To meet customers’ increasing needs for modern format foodservice outlets, many new restaurants were launched in the review period, both by domestic as well as foreign, multinational brand names. For example, KFC has penetrated into Vietnam in its traditional way, which is franchising. At the same time, the expansion in players also caused the competition to intensify during the review period. Increasingly, outlets are competing by emphasising their menu specialities, offering discount coupons as well as media advertisements. On the intangible front, customers look for the convenience, the leisure and the joy that they can derive at these outlets. The toughest problem seems to be finding a good location and, especially so in Ho Chi Minh City, due to the real estate land prices.
Independent Stores Account for a Large Number of Outlets
Chained store development is still a relatively new concept in Vietnam. Thus, the number of independent stores is significantly greater. These are often operated as a family business, low on financial inputs and do not typically expand into chained formats. They have their own frequent customers, typically from the immediate physical vicinity, and tend to focus on retaining these customers with their menu specialities, low prices and customer service. However, most of the newly opened outlets in 2006-2007 were chained format establishments, as they can benefit from the reputation of the chains, so it takes less time to attract new customers and to built up a large pool of frequent customers.
Continual Growth Thanks to Franchising
Franchising as a means of foodservice expansion is not a new trend to Vietnamese consumer foodservice operators, but certainly grew faster during the whole review period. This was the result of the professional operation and good food quality offered by most stores. In addition, many Vietnamese consumers have got to know the famous chains when they travel, work or study abroad. Hence, they easily get used to these chains in Vietnam, and even introduce the stores to friends or relatives. As a result, franchising will continue to grow in the forecast period. The chains should be expanded to most big cities in Vietnam. Their growth will contribute a lot to the growth of total consumer foodservice in the next five years.
Table of contents
CONSUMER FOODSERVICE IN VIETNAM : MARKET INSIGHT
EXECUTIVE SUMMARY
Another Good Year for Consumer Foodservice
Young and Rich Customers Having a Great Impact on Sales
Tougher Competition
Independent Stores Account for a Large Number of Outlets
Continual Growth Thanks to Franchising
KEY TRENDS AND DEVELOPMENTS
A new wave of rich people emerging in Vietnam
Franchising on a steep upward curve
Speed and convenience are top priorities
Young customers drive sales for new stores and new formats
Diversification in customer tastes
MARKET DATA
Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2001-2006
Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2001-2006
Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2006
Table 4 Consumer Foodservice by Eat in Vs Takeaway 2006
Table 5 Consumer Foodservice by Food Vs Drinks Split 2006
Table 6 Sales in Consumer Foodservice by Location 2001-2006
Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2006
Table 8 Chained Consumer Foodservice Company Shares 2002-2006
Table 9 Chained Consumer Foodservice Brand Shares 2003-2006
Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2006-2011
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2006-2011
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - VIETNAM
NAM AN GROUP - CONSUMER FOODSERVICE - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Nam An Group: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 3 Nam An Group: Competitive Position 2006
TRUNG NGUYEN COFFEE CO LTD - CONSUMER FOODSERVICE - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Trung Nguyen Coffee Co Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Trung Nguyen Coffee Co Ltd: Competitive Position 2006
VIET THAI INTERNATIONAL JOINT STOCK CO - CONSUMER FOODSERVICE - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Viet Thai International Joint Stock Co: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Thai International Joint Stock Co: Competitive Position 2006
VIETLIFESTYLE JSC CO - CONSUMER FOODSERVICE - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Vietlifestyle JSC Co: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
VIETNAM LOTTERIA CO LTD - CONSUMER FOODSERVICE - VIETNAM
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Vietnam Lotteria Co Ltd: Key Facts
Summary 10 Vietnam Lotteria Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Vietnam Lotteria Co Ltd: Competitive Position 2006
CAFéS/BARS IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 12 Cafés/Bars by Subsector: Units/Outlets 2001-2006
Table 13 Cafés/Bars by Subsector: Transactions 2001-2006
Table 14 Cafés/Bars by Subsector: Foodservice Value 2001-2006
Table 15 Cafés/Bars by Subsector: % Volume Growth 2001-2006
Table 16 Cafés/Bars by Subsector: % Transaction Growth 2001-2006
Table 17 Cafés/Bars by Subsector: % Foodservice Value Growth 2001-2006
Table 18 Global Brand Owner Shares of Chained Cafés/Bars 2002-2006
Table 19 Brand Shares of Chained Cafés/Bars 2003-2006
Table 20 Forecast Sales in Cafés/Bars by Subsector: Units/Outlets 2006-2011
Table 21 Forecast Sales in Cafés/Bars by Subsector: Transactions 2006-2011
Table 22 Forecast Sales in Cafés/Bars by Subsector: Foodservice Value 2006-2011
Table 23 Forecast Sales in Cafés/Bars by Subsector: % Volume Growth 2006-2011
Table 24 Forecast Sales in Cafés/Bars by Subsector: % Transaction Growth 2006-2011
Table 25 Forecast Sales in Cafés/Bars by Subsector: % Foodservice Value Growth 2006-2011
FULL-SERVICE RESTAURANTS IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 FSR by Subsector: Units/Outlets 2001-2006
Table 27 FSR by Subsector: Transactions 2001-2006
Table 28 FSR by Subsector: Foodservice Value 2001-2006
Table 29 FSR by Subsector: % Volume Growth 2001-2006
Table 30 FSR by Subsector: % Transaction Growth 2001-2006
Table 31 FSR by Subsector: % Foodservice Value Growth 2001-2006
Table 32 Forecast Sales in FSR by Subsector: Units/Outlets 2006-2011
Table 33 Forecast Sales in FSR by Subsector: Transactions 2006-2011
Table 34 Forecast Sales in FSR by Subsector: Foodservice Value 2006-2011
Table 35 Forecast Sales in FSR by Subsector: % Volume Growth 2006-2011
Table 36 Forecast Sales in FSR by Subsector: % Transaction Growth 2006-2011
Table 37 Forecast Sales in FSR by Subsector: % Foodservice Value Growth 2006-2011
FAST FOOD IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Fast Food by Subsector: Units/Outlets 2001-2006
Table 39 Fast Food by Subsector: Transactions 2001-2006
Table 40 Fast Food by Subsector: Foodservice Value 2001-2006
Table 41 Fast Food by Subsector: % Volume Growth 2001-2006
Table 42 Fast Food by Subsector: % Transaction Growth 2001-2006
Table 43 Fast Food by Subsector: % Foodservice Value Growth 2001-2006
Table 44 Sales of Bakery Products Fast Food by Type 2006
Table 45 Global Brand Owner Shares of Chained Fast Food 2002-2006
Table 46 Brand Shares of Chained Fast Food 2003-2006
Table 47 Forecast Sales in Fast Food by Subsector: Units/Outlets 2006-2011
Table 48 Forecast Sales in Fast Food by Subsector: Transactions 2006-2011
Table 49 Forecast Sales in Fast Food by Subsector: Foodservice Value 2006-2011
Table 50 Forecast Sales in Fast Food by Subsector: % Volume Growth 2006-2011
Table 51 Forecast Sales in Fast Food by Subsector: % Transaction Growth 2006-2011
Table 52 Forecast Sales in Fast Food by Subsector: % Foodservice Value Growth 2006-2011
100% HOME DELIVERY/TAKEAWAY IN VIETNAM
HEADLINES
TRENDS
PROSPECTS
SELF-SERVICE CAFETERIAS IN VIETNAM
HEADLINES
TRENDS
PROSPECTS
STREET STALLS/KIOSKS IN VIETNAM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
Table 53 Street Stalls/Kiosks by Subsector: Units/Outlets 2001-2006
Table 54 Street Stalls/Kiosks by Subsector: Transactions 2001-2006
Table 55 Street Stalls/Kiosks by Subsector: Foodservice Value 2001-2006
Table 56 Street Stalls/Kiosks by Subsector: % Volume Growth 2001-2006
Table 57 Street Stalls/Kiosks by Subsector: % Transaction Growth 2001-2006
Table 58 Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2001-2006
Table 59 Global Brand Owner Shares of Chained Street Stalls/Kiosks 2002-2006
Table 60 Brand Shares of Chained Street Stalls/Kiosks 2003-2006
Table 61 Forecast Sales in Street Stalls/Kiosks by Subsector: Units/Outlets 2006-2011
Table 62 Forecast Sales in Street Stalls/Kiosks by Subsector: Transactions 2006-2011
Table 63 Forecast Sales in Street Stalls/Kiosks by Subsector: Foodservice Value 2006-2011
Table 64 Forecast Sales in Street Stalls/Kiosks by Subsector: % Volume Growth 2006-2011
Table 65 Forecast Sales in Street Stalls/Kiosks by Subsector: % Transaction Growth 2006-2011
Table 66 Forecast Sales in Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2006-2011