Post-Covid-19: Most of the big guys in the restaurant chain business reported losses

Vietnam is a potential market for investment and development of commodities in general and the food and beverage industry in particular. According to Statista (2021), retail sales of the food and beverage market in Vietnam will reach USD 66.3 billion by 2023. With an annual growth rate (CAGR 2021-2025) of nearly 5% and a constantly expanding scale, Vietnam is having a great attraction to the big players in the industry. Along with that, the success of the big guys in the restaurant chain business model has attracted the attention and participation of domestic and foreign investors.


In the past few years, in big cities such as Hanoi, Hai Phong, Da Nang, and Ho Chi Minh City, restaurant chains have mushrooms. Especially the restaurant chains of Golden Gate, Red Wok, Redsun, MK Restaurant, ... and fast food restaurant chains such as KFC, Lotteria, McDonald’s, Pizza Hut, Burger King,...


However, the COVID-19 pandemic has had a huge impact on the business situation of these restaurant chains. Notably, most of the big guys reported losses.


Golden Gate Trading Service Joint Stock Company - Golden Gate is the first enterprise in Vietnam to apply the restaurant chain model. Currently, Golden Gate is holding “the throne” in the field of restaurant chain business with more than 22 brands such as Gogi House, Kichi-Kichi, Sumo BBQ, Daruma,...and nearly 400 restaurants and services about 18 million customers per year.


The success, as well as the outstanding development of the chain stores, have brought huge profits to this business. With revenue of thousands of billions of Dong per year, this Golden Gate has become a “tycoon” of the restaurant chain business.


However, due to the complicated developments of the covid pandemic, Golden Gate had to close some stores, leading to a decline in business results. Although earlier in 2019, this big man's revenue reached nearly VND 5 trillion, by 2021, this restaurant chain will only bring in more than VND 3 trillion and even a pre-tax loss of more than VND 400 billion.


Redsun International Trade Investment Joint Stock Company (Redsun-ITI Corporation) was established in 2008. So far, Redsun has owned more than 200 restaurants with 15 brands such as King BBQ, ThaiExpress, Seoul Garden, Capricciosa, Tasaki BBQ, Hotpot Story,...


It can be seen that Redsun is one of the restaurant chains that have been heavily affected by the pandemic when revenue is continuously decreasing. Since 2020, revenue has decreased by more than 50% compared to 2019, and the pre-tax loss is nearly 100 billion VND.



Red Wok Cuisine Joint Stock Company - Red Wok was established in 2006 and is a pioneer in the business of Vietnamese restaurant chains. Currently, Red Wok owns 4 Vietnamese culinary brands: Wrap & Roll, Beer Craft, Saigon Beef Hot Pot, and Quan Ut Ut.


Despite the investment from Mekong Capital, this restaurant chain is still affected by the pandemic, leading to a decrease in business results when revenue drops by more than 50% in 2021 and continuously suffers losses in the period from 2017 to 2021.


Vietnam Food and Beverages Service Co., Ltd. (VFBS) is a unit specializing in franchising leading foreign fast-food brands such as Burger King, Domino’s Pizza, Popeyes, etc. Owning its own brands, but VFBS still brings in hundreds of billions of Dong every year. During the covid period, VFBS’s revenue still has a growth and a slight decrease of about 5% in 2021. Even so, these fast food restaurant chains are still difficult to stand up to the development of fast food restaurant competitors in the industry.


MK restaurant chain is a famous brand from Thailand, entered Vietnam in 2010, under the management of Mesa Group. Currently, the MK Fresh Hot Pot restaurant chain has developed and expanded with 8 modern and luxurious restaurants located in the largest commercial centers in Ho Chi Minh City and Binh Duong.


It can be seen that MK is the only brand that has maintained its revenue growth over the years in the period 2017-2021 compared to other big players. By 2021, this restaurant chain recorded a revenue of more than 1.5 trillion Dong, an increase of 11% over the same period in 2019. However, the covid pandemic also made this restaurant chain difficult. Although the revenue is quite high, the profit before tax of this F&B chain is quite low and even has a loss in 2021.


KFC is one of the largest and most influential fast food restaurant chains today, with more than 20,000 stores in 109 countries and territories. KFC opened its first restaurant in Ho Chi Minh City in 1997. Up to now, KFC’s restaurant system has grown to more than 153 restaurants, present in more than 36 major cities/provinces across the country.


In 2019, KFC achieved revenue of nearly VND 1.5 trillion, an increase of about VND 20 billion compared to the same period last year. In 2020 and 2021, under the impact of the pandemic, the revenue of this restaurant chain continuously decreased and even made a pre-tax loss of nearly 50 billion VND (in 2021).


Lotteria entered the Vietnamese market in 1998, although it was late, this fast food chain has quickly developed and become a “serious” competitor. With a revenue of nearly 1.7 thousand VND (in 2019), Lotteria surpassed KFC and McDonald’s. Although revenue is always high, this restaurant chain has continuously reported losses, especially since the covid epidemic took place. In 2021, Lotteria lost nearly 200 billion VND before tax.


McDonald’s entered the Vietnamese market in 2013, quite late compared to the big two, KFC and Lotteria. Also a chain of fast food restaurants, but McDonald’s specializes in hamburgers.


In terms of revenue targets, McDonald’s chain is also inevitably affected by the covid-19 epidemic, when the revenue in 2021 is just over VND 300 billion (decreased by nearly 25% compared to the same period in 2020). Notably, in the period 2017-2021, McDonald’s continuously reported losses.



Pizza 4P’s is a chain of restaurants opened in Vietnam by Japanese couple Yosuke Masuko and Sanae with the desire to become the leader in luxury dining experiences in Asia. Currently, the chain has 25 restaurants in Ho Chi Minh City, Hanoi, Hai Phong, Da Nang, Nha Trang.


The situation of this fast food restaurant chain seems to be positive in the period before 2019 when the revenue growth continues and reached over 560 billion VND in 2019. Since 2020, the revenue has started to decline and a loss occurs.


The Pizza Company is a trademark owned by Minor Food Group. This Italian-style Pizza restaurant chain entered the Vietnamese market in 2013 and now owns more than 70 restaurants nationwide.


Since the covid epidemic took place, the revenue of this pizza restaurant chain has decreased slightly. Specifically, in 2021, The Pizza Company’s revenue decreased by 8% compared to the same period in 2020. Although ranked 2nd in the pizza market in terms of revenue, the pre-tax profit of this fast food restaurant chain was continuously negative in the period from 2017 to 2021.


Pizza Hut is a restaurant chain of Yum! Pizza Hut has been present in Vietnam since 2006 and currently owns more than 110 restaurants with over 3,000 employees. This restaurant chain leads the pizza market even though the business situation tends to decline due to the covid-19 epidemic. Like other restaurant chains, Pizza Hut has continuously reported losses in recent years. Notably, in 2021, this company lost nearly 100 billion dong, 2 times higher than in 2020.


Although the business situation of the big players in the restaurant chain business has declined in recent years due to the appearance of the covid-19 pandemic, these restaurant chains have constantly innovated and found their own direction. Besides, with the speed of development and the constantly expanding scale, the Vietnamese market is a potential place for investors to do business, especially in the field of business model of restaurant chains.


Vietdata