Back in the late 1990s, Vietnamese consumers first encountered global fast-food giants like KFC, Jollibee, and Lotteria. At that time, fast food was a novelty—something curious and exciting. But it wasn’t until after 2009, when Vietnam eased retail restrictions as part of its WTO commitments, that franchising in the F&B sector truly took off. Beyond fried chicken and pizza, the market began to expand into coffee, bubble tea, ice cream, and other food segments.
Today, Vietnam is no longer just a “test market” but a strategic destination for international brands. With over VND 688.8 trillion in F&B revenue in 2024 and nearly 323,000 outlets nationwide, franchising has become the fastest route for global players to build sustainable market presence.
Every brand has its own entry formula. McDonald’s opted for 100% franchising from the start (2013), while early entrants like KFC and Lotteria had to invest heavily—operating hundreds of corporate-owned stores—before opening up to franchise partners.
Most international brands now rely on the Master Franchise model, granting exclusive rights to a single partner in Vietnam. This approach reduces legal risks, ensures quality control, and leverages local know-how. A clear example: IPPG currently holds the master franchise rights for Burger King, Domino’s Pizza, and Popeyes.
Western brands dominate fast food: McDonald’s, KFC, Pizza Hut, Domino’s, and more.
Asian brands lead the beverage game. Taiwanese and Chinese chains such as Mixue, Dingtea, and Gong Cha expand aggressively with low franchise fees and youth-focused marketing. In just five years, Mixue reached 1,000 outlets in Vietnam.
Japanese & Korean brands take a more cautious approach. Japanese players (Coco Ichibanya, Sukiya, Pepper Lunch) prioritize quality control before scaling. Korean brands like Paris Baguette and Tous Les Jours typically invest directly in the early years, then launch franchising with high fees, balancing modest localization with strong brand identity.
Young and dynamic population: 70% in working age, open to new food trends.
Expanding middle class: greater disposable income fueling branded dining.
Urbanization & tourism: major cities (HCMC, Hanoi, Danang) are growth hubs, while international tourists drive demand for familiar global brands like Starbucks and Burger King.
Entrepreneurial culture: local investors are increasingly attracted to proven franchise systems.
Unsurprisingly, Jollibee leads Vietnam’s fast-food market with 22% share, surpassing KFC and Lotteria (Euromonitor, 2024).
Vietnam’s vibrant street food culture is the toughest competitor—affordable, tasty, and deeply loved. With meals priced at just $2–3, phở, bánh mì, and bún bò remain everyday favorites, making global fast-food brands look premium rather than affordable. Starbucks and McDonald’s, for instance, are positioned as mid-to-high tier brands in Vietnam.
Not every franchise succeeds. The case of Dodo Pizza is telling: despite running over 1,300 outlets worldwide, the Russian chain had to shut nearly all its Vietnamese stores after just a few years in operation.
There is no one-size-fits-all recipe for franchise success in Vietnam. Each brand must:
Understand local consumer culture, where convenience and experience matter as much as the brand name.
Define clear target segments: mass market, middle class, or premium.
Build flexible strategies: from localization of products to choosing the right franchise model.
Franchising in Vietnam’s F&B sector is both a golden opportunity and a risky gamble. It’s a young, fast-growing, and dynamic market—appealing yet unpredictable. Brands that can strike the right balance between global identity and local adaptation will be the ones to thrive in this competitive landscape.
