Despite many fluctuations in the economy from the end of 2022 to the beginning of 2023, the general market is forecast to face many difficulties. However, according to our reports, the market value of Vietnam's F&B industry in 2023 will be expected to increase by 18% compared to 2022, reaching a revenue milestone of about VND 720.3 trillion.
After two years of overcoming due to the Covid-19 pandemic, the F&B market in 2022 has regained growth, even surpassing pre-Covid-19 levels. Specifically, in 2022, Vietnam recorded about 338.6 thousand restaurants with an annual growth rate of about 2% from 2016 to 2022. The revenue of the F&B industry also rose by an impressive growth rate of 39% compared to 2021, reaching nearly VND 610 trillion, surpassing the time before the epidemic in 2019.
With a strong recovery and growth, the F&B industry is predicted to continue to grow at a steady pace and is expected to reach a value of nearly VND 940 trillion (USD 39 million) by 2026.
In terms of the revenue structure of F&B services across the country in 2022, there was a strong difference in revenue when 95% of sales came from local food services while only 5% of the market came from food service chains. The biggest reason is that the prices of food and drinks at restaurant chains are still quite high compared to the income of Vietnamese people.
However, this does not mean that food service chains are not growing. Although accounting for a small market share in its revenue of the food industry, with the explosion of the middle class in the Vietnam market (26% of the population is middle class in 2026), the food chain market will grow rapidly, especially in tier-one cities.
Some business models of famous restaurant chains in Vietnam such as Kichi Kichi, King BBQ, Hotpot Story or Sumo BBQ, etc. Normally, these restaurants are owned by different owners and always compete with each other such as KFC, Lotteria, Pizza Hut, The Pizza Company,... But it can also be in a large chain of restaurants that are owned by a single business unit. The "big men" own famous restaurant chains in Vietnam such as Golden Gate, Redsun, and Redwok,...
Some corporations operate many restaurant chains
Golden Gate
Established in 2005, Golden Gate is a pioneer corporation in applying the restaurant chain model in Vietnam, with 5 main culinary styles, including Hot pot, Grill, Asian, European and coffee shop. After 18 years of establishment, Golden Gate now owns more than 22 brands and nearly 400 multi-style restaurants in 40 provinces and cities, serving 18 million customers per year, and is constantly striving to develop more.
The familiar Golden Gate brands such as Kichi-Kichi, Manwah, Hutong, Ashima, K-Pub, GoGi, Sumo Yakiniku, iSushi, Crystal Jade Hong Kong Kitchen, Cowboy Jack's... are all national names and have been recognized by many people.
Golden Gate's revenue fluctuated in 3 years. In 2020, its revenue reached nearly VND 4600 billion. Revenue decreased by 27% in 2021 and increased by 110% in 2022, reaching nearly VND 7000 billion. In terms of profit after tax, Golden Gate's profit reached more than VND 65 billion in 2020. This number dropped sharply in 2021 to a negative VND 431 billion approximately. After that, profit climbed sharply in 2022, reaching more than VND 658 billion.
REDSUN
Established in February 2008, Redsun-ITI Corporation has now become one of the leading companies in the culinary field in Vietnam. After more than 15 years of establishment and development, Redsun-ITI has affirmed its leading position in the culinary field with 13 major brands such as King BBQ, ThaiExpress, Seoul Garden, Capricciosa, Tasaki BBQ, Meiwei, Khao Lao,...
With more than 200 restaurants in all provinces and cities nationwide and abroad, Redsun-ITI always brings customers high-class culinary brands, luxury restaurant chains, delicious dishes, and excellent service.
The development of Redsun in the last two years has a slowdown. Specifically, in 2021, Redsun's revenue reached more than VND 350 billion. By 2022, revenue went down by more than 60%, recording VND 140 billion. Regarding profit after tax, although it still recorded a negative profit, its loss declined by 20% in two years from negative VND 116 billion in 2021 to negative VND 93 billion in 2022.
VFBS
VFBS is a member of Imex Pan Pacific Group (IPPG), operating in many fields mainly in the franchising of international brands. VFBS specializes in franchising foreign food & fast food brands.
With 13 years of development from 2010-2013, VFBS is currently distributing three exclusive brands: Burger King, Domino's Pizza, and Popeyes with more than 100 stores nationwide and operated by 3000 employees.
The brand's revenue fluctuated slightly in 2020 and 2021 at around VND 650 billion and went up sharply in 2022, reaching nearly VND 920 billion, up 40% compared to revenue two years ago. Regarding profit after tax, profit recorded a negative level and changed continuously for three years. Specifically, in 2020, the profit was negative VND 70 billion. This figure increased to 46.5% in 2021, reaching negative 102 VND billion, and down 82% in 2022, reaching nearly negative VND 19 billion.
REDWOK
Red Wok (Red Wok), formerly known as Goi and Cuon Company, was established in 2006. This is also one of the pioneering companies in the business of Vietnamese restaurant chains. In June 2017, Goi and Cuon company officially changed its name to Red Wok Cuisine Joint Stock Company (Red Wok).
In 2018, Red Wok acquired Quan Ut Ut, with 2 famous barbecue restaurants (Quan Ut Ut) and 5 craft beer restaurants (Craft Beer) in Ho Chi Minh City. Currently, Red Wok owns the brands: Wrap & Roll, Saigon Beef Hot Pot, Quan Ut Ut, and BiaCraft and is one of the typical businesses representing Vietnamese Cuisine.
Red Wok's revenue in 2020 was about VND 130 billion. This figure decreased to VND 60 billion in 2021 and increased to VND 150 billion in 2022. The brand's profit in 3 years has always been negative and has fallen year by year. Specifically, in 2020, its profit was negative VND 40 billion. Its loss dropped slightly by 4% compared to 2020, reaching negative 38.5 VND billion, and continued to slum by 36%, reaching a negative 25 VND billion in 2022.
MESA Group
Mesa Trading and Service Co., Ltd was established in 1995, operating in the field of distribution, then expanding into the fields of media, food, telecommunications, investment, and real estate development.
Over 28 years of operation, the company has researched and developed strategies, plans, organizations, marketing, selling, and distributing products to consumers most effectively and economically. MESA is not only famous for product distribution but also strongly develops the service industry with a system of high-end restaurant chains for famous brands such as Hamburger Carl restaurant, Texas Chicken fried chicken, Japanese restaurant Ootoya, and MK Thai hot pot restaurant.
Revenue and profit after tax of MESA Group have increased and decreased continuously for 3 years. In 2020, its revenue reached nearly 8000 VND billion. Revenue declined by 6% in 2021 and rose by nearly 29% in 2022, reaching nearly VND 9700 billion. In terms of profit after tax, in 2020, profit after tax reached nearly VND 17 billion. This number dropped to 42% in 2021, reaching nearly VND 10 billion, and went up by 115% in 2022, reaching nearly VND 21 billion.
In Dining
In Dining was originally named Nova F&B - the restaurant and beverage service segment of Nova Service under NovaGroup. However, Nova F&B Joint Stock Company was "transferred" to Singaporean investors. With this M&A deal, foreign investors will take over and exploit the chain of coffee brands, restaurants, and clubs... developed by Nova F&B or franchised in Vietnam from regional brands.
During more than 3 years of focused development, Nova F&B currently has 46 operating stores with 18 brands that are gradually familiar to customers, including self-developed brands such as Marina Club, The Dome Dining & Drinks, Dynasty House, etc. Phindeli, Mojo Boutique Coffee,... as well as franchises and international cooperation such as JUMBO Seafood, Crystal Jade Palace, Gloria Jean's Coffees,...
In Dining's revenue recorded a continuous increase for three years. In 2020, the group's revenue reached VND 140 billion. This number increased by 52% in 2021 and climbed by 273% in 2022, reaching nearly VND 790 billion. However, the group had almost no profit after tax and the profit had a sharp decrease in 2021. Specifically, in 2020, the profit reached negative VND 1.5 billion. In 2021, profit after tax increased slightly to nearly VND 2 billion. After that, its loss rose more than 97 times compared to 2020, reaching negative VND 160 billion.
OFOOD
Established in 2014, OFOOD is growing rapidly with delicious food and dedicated customer service. By 2019, just five years after its establishment, Ò Ó O stood in the same group as a series of other F&B brands such as Bo Le Ro, Yo! Chicken and Life Coffee & Tea. Not only the number of stores of these brands increased by 40 times, but the number of sales touch points of the door-to-door model also reached 200 points. Up to now, OFOOD has more than 70 branches throughout Saigon and Hanoi districts.
During the period 2020-2022, OFOOD recorded a continuous increase in revenue for three years. In 2020, the brand's revenue reached VND 8 billion. This number climbed by 290% in 2021 and grew by 394% in 2022, reaching VND 145 billion. OFOOD's profit after tax was not high, reaching nearly VND 30 million in 2020 and VND 47 million in 2021. By 2022, profit after tax dropped sharply to negative VND 3.2 billion.
D1 Concept
D1-Concepts Company was established in 2012 in Ho Chi Minh with the function of providing food service and product processing under the name of D1-ConCepts Joint Stock Company. Operating with the main business function of developing food and catering (F&B) systems, in less than 6 years, the company has owned 4 F&B brands, and 18 stores with an average of each launching 2 new business locations and introducing one new project.
D1-Concepts is the convergence of passion and creativity in the culinary industry, owning 4 brands representing diverse and unique cuisines in the world such as San Fu Lou - Guangdong, SORAE - Japan Ban, Aunt Mai – Vietnam, SENS – France.
D1-Concept's revenue recorded continuous increases and decreases for three years. In 2020, the group's revenue reached nearly VND 200 billion. This number went down by 38% in 2021 and increased by 96% in 2022, reaching nearly VND 240 billion. The brand's profit after tax recorded a negative level in 2020 and 2021, increasing from negative VND 12 billion to negative more than VND 30 billion in 2021. By 2022, D1-Concept's after-tax profit grew strongly and recorded a positive profit of VND 15 billion.
Other famous restaurant chain brands
KFC
In 1997, the first KFC presence in Vietnam was the first establishment in Ho Chi Minh City. Ho Chi Minh. In the first 7 years of importing KFC, it suffered quite a heavy loss and suffered many waves and difficulties. However, with great efforts, KFC has more than 140 restaurants and over 3000 employees. KFC has a certain position in the fast food market in Vietnam.
In the period from 2020 to 2022, KFC's revenue changed continuously year by year. In 2020, the brand's revenue reached nearly VND 1300 billion. This number fell by 19% in 2021 and increased by 60% in 2022, reaching more than VND 1600 billion. Profit after tax in 2020 reached nearly VND 2 billion, then plummeting to negative VND 50 billion in 2021. By 2022, profit after tax climbed and reached more than VND 50 billion.
Lotteria
Lotteria is a chain of fast food restaurants belonging to Lotte Group - one of the five largest corporations in Korea. For 7 years in a row, it has been ranked No. 1 on "Brand Power". Lotteria has been present in the Vietnamese market since 1998. Currently, with the stature of an international business, Lotteria is leading the domestic catering industry with more than 210 restaurants in more than 30 provinces/cities across the country. This is the result of Lotteria's unremitting efforts.
Lotteria's net revenue reached nearly 1400 billion in 2022, 20% higher than in 2021. By 2022, revenue increased by 76%, reaching nearly VND 2000 billion. Although its revenue reached more than 1000 billion, Lotte didn’t record a positive profit. Negative profit decreased significantly compared to the previous two years, reaching negative VND 14 billion, down 90% compared to the same period two years ago.
Jollibee
Jollibee is an extraordinary success story because only two small ice cream parlors formed in 1975 then became a corporation that created a fast food revolution in the Philippines.
Jollibee currently has more than 1000 stores in the Philippines and more than 300 stores in countries around the world such as the US, Hong Kong, United Arab Emirates, Qatar, Brunei, China, and Vietnam. Launched in Vietnam in 2005, up to now, Jollibee has more than 100 stores in Vietnam spread across the country.
Jollibee’s revenue increased and decreased continuously for three years. In 2020, the brand's revenue reached more than VND 1100 billion. This number dropped by 12% in 2021 and went up by 90% in 2022, reaching nearly VND 1900 billion. The brand's profit after tax recorded a negative level in 2020 and 2021, from negative VND 16 billion to negative VND 44 billion in 2021. By 2022, Jollibee's profit after tax grew sharply and recorded a positive profit, reaching more than VND 68 billion.
McDonald's
In 2014, McDonald's came to Vietnam, becoming the first fast food brand present in our country. At this time, McDonald's was warmly welcomed and responded to by the people. However, as of early 2021, McDonald's Vietnam system only has a total of 24 locations across the country. A rather small number compared to McDonald's direct competitors KFC and Jollibee.
In the period from 2020 - 2022, the brand's revenue changed continuously year by year. In 2020, the brand's revenue reached nearly 450 billion VND. This number decreased by 24% in 2021 and increased by 94% in 2022, reaching more than VND 650 billion. Profit after tax recorded a negative level for three years but has been on a downward trend. Specifically, in 2020, McDonald's profit after tax reached negative more than VND 180 billion. This number fell by 3% in 2021 and further declined by 44% in 2022, reaching a negative level of VND 100 billion.
Pizza Hut
Pizza Hut started from a small shop owned by brothers Dan and Frank Carney in Kansas in 1958. After many years of establishment and development, Pizza Hut became a franchise brand managed by Yum! Brands.
This brand gradually grew with more than 6000 restaurants in the US and more than 16 thousand branches in more than 100 countries around the world. In Vietnam, Pizza Hut has more than 90 branches and stores stretching from North to South. These stores receive a lot of positive feedback from customers both in terms of food quality and service style.
In 2020, Pizza Hut's revenue will reach nearly VND 700 billion. This number decreased by 17% in 2021 and increased by 52% in 2022, reaching nearly VND 840 billion. The brand's profit after tax recorded a negative level in 2020 and 2021, increasing from negative VND 51 billion to 101%, reaching a negative VND 106 billion in 2021. By 2022, Jollibee's profit after tax recorded a positive profit, reaching more than VND 1.4 billion.
Pizza 4P's
Pizza 4P's is a pizza restaurant chain of two Japanese founders, Mr. Yosuke Masuko and his wife, Ms. Sanae Takasugi. Currently, the company owns a total of 24 Pizza 4P's stores (in which, 12 stores in Ho Chi Minh City, 8 stores in Hanoi, 2 stores in Da Nang, and 1 store in Hai Phong and Nha Trang), 5 centers delivery and cheese factory in Don Duong, Da Lat.
Pizza 4P's revenue reached more than VND 1000 billion in 2022, an increase of 86% compared to 2021 and an increase of 83% compared to 2020. Pizza 4P's profit after tax recorded negative levels in 2020 and 2021, from negative VND 20 billion in 2020 to increase negative VND 40 billion in 2021. By 2022, Jollibee's profit after tax recorded a positive profit, reaching nearly VND 84 billion.
The Pizza Company
Founded in 1981, The Pizza Company - an Italian-style Pizza restaurant chain began to expand and develop an international franchise and store system. Currently, The Pizza Company brand has more than 300 stores in more than 12 markets worldwide.
In 2013, The Pizza Company restaurant first appeared in Vietnam. Along with the trend of development and international integration, "The Pizza Company" is one of the fastest-growing pizza brands with more than 70 restaurants nationwide, and has become a favorite destination of foodies. food lovers during the past time.
In the period from 2020 to 2022, The Pizza Company's revenue also fluctuated continuously. In 2020, the brand's revenue reached more than VND 580 billion. This number decreased slightly in 2021 and climbed by 52% in 2022, reaching nearly VND 820 billion. Profit after tax recorded a good signal, from a negative profit of nearly VND 100 billion in 2020 to a negative VND 49 billion in 2021. By 2022, revenue recorded a positive level, reaching nearly VND 40 billion.
Currently, The restaurant chain business is an interesting model, but it is not easy to manage and link up into a successful chain of restaurants. After the pandemic, the biggest change in customers is that the habit of ordering food online and home delivery has become explosive. Although according to the forecast, the food market will still return to normal operations, diners now have higher quality requirements, and expect to receive better experiences and more valuable services. This is a common mandatory trend in the culinary industry, so F&B units must constantly improve to serve the increasing demands of the consumer market.
Source: Vietdata's 2022 Restaurant Chains Market Report