VietNamNet Bridge – The recent arrival of a horde of international fast food giants to the Vietnamese market has triggered a stiff battle for retail premises in the nation’s major metropolises.
Covering an area of 1,300 square meters, and with a seating capacity of 350 customers, the first McDonald’s restaurant in Vietnam also happens to be the chain’s third largest in the world. The remainder of its 2,955 square meter campus can accommodate 260 motorbikes and 165 cars .
Good Day Hospitality, the McDonald’s franchisee, is owned by Mr. Nguyen Bao Hoang. While declining to provide exact sales figures, Mr. Hoang allowed that the number of customers visiting his establishment has exceeded his expectations.
This was Hoang’s reason for opening a second McDonald’s in HCM City, and to move ahead with plans for more such restaurants across the country.
After opening the first shop in February 2013, the US’ Starbucks has opened three more, all in HCM City. The next shop will be in Hanoi, and is expected to open in the second quarter of the year.
Like others, Starbucks has been facing daunting challenges when seeking retail premises for its shops, especially in Hanoi. However, Patricia Marques, Starbucks Vietnam’s CEO, says Starbucks will be faster than McDonald’s in conquering the Hanoi market.
BBQ Vietnam, which runs BBQ Chicken, has made an impressive return to the Hanoi market by inaugurating BBQ Premium Café in late October 2013. The shop is located at No 43 Trang Tien Street in the center of Hanoi, a location that businessmen salivate over.
The area is near the Hanoi Theatre and the historic Guom Lake (Sword Lake). This is described as biggest commercial hub, to which Hanoians usually flock on weekends or holidays.
BBQ has reportedly spent VND7 billion, not including the franchising and training fee, to create a new atmosphere for the shop. South Korean Genesis, owner of the brand, has reportedly sent qualified staff to Vietnam to train and supervise the operation there.
Before opening at its new location, BBQ had set up shop at No 35 Trang Tien Street, but it later had to shut down due to a dispute with a Vietnamese brand. However, refusing to give up the golden land area, it has returned. Besides the shop on Trang Tien, BBQ now has 15 others in Hanoi.
BBQ is following an ambitious plan of outstripping McDonald’s in its worldwide number of shops, with a target of about 50,000 by 2020.
While some analysts claim that BBQ’s plan is unfeasible in the current economic climate, BBQ Vietnam’s CEO Sim Hwang Jin insists his brand will succeed with its strategy of developing shops in satellite cities in the north and south, where it would encounter fewer problems in finding retail premises.
Kentucky Fried Chicken (KFC), which has been present in Vietnam for the past 17 years, now boasts 180 shops in 18 cities and provinces. But unlike the pioneering days when it first set foot on Vietnam’s shores, it now has to compete with a multitude of other big names, like Burger King, Pizza Hut, Popeyes and Dunkin’s Donuts.
The retail premises in HCM’s District 7 where KFC once set up shop, have now been leased to a Burger King franchise. It reportedly pays $10,000 a month in rent.
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