Gaetan Herve, general manager of Shakespeare and Co., a leading Dubai-based cafe-restaurant franchise, popular throughout the Middle East and the US, is also looking to enter Vietnam. He spoke with VIR’s Nguyen Chung about its franchising plans in the country and the potential of Vietnam’s franchising market.

What has convinced Shakespeare and Co. to explore the Vietnamese market? Could you give us a bit more information about your brand? Also, what do you expect from a Vietnamese partner?
Shakespeare and Co. was established with the simple premise of serving quality food and providing friendly and efficient service in a comfortable, tranquil atmosphere. Our menu comprises classic dishes from the world’s favorite cuisines – in essence, reflecting the rich diversity of the patrons who visit our restaurants.
Vietnam is a thriving, emerging market with political stability, a competitive workforce, and an increasingly open and transparent business environment, making it a prime environment for our unique brand to flourish.

We seek a well-established and capitalised master franchisee with keen business acumen, a sound knowledge of the food and beverage industry, an intimate understanding of the local market, and the passion and patience to endure the challenges of a complex and demanding enterprise. We expect our partners to possess the desire to establish multiple establishments, and are dedicated to developing the Shakespeare and Co. brand to its fullest potential.

What is your opinion of Vietnam’s franchise market and its prospects? 

The Vietnamese franchise market has emerged in recent years as fertile ground for foreign companies to establish themselves in the region. Overseas firms are attracted by Vietnam’s 87 million-plus population which supports a large and young workforce and that has also seen an increase in disposable income in recent years.
According to statistics from the Ministry of Industry and Trade, as of April, 2014, Vietnam, in particular, has had over 120 international brands obtaining franchise registration, with the franchising sector experiencing an average annual growth rate of over 30 percent. Multinational corporations have been setting up throughout the major cities, resulting in an influx of expatriates as well as the local market’s gradual exposure to international concepts.
What advantages and difficulties do you see facing Shakespeare and Co. as well as other foreign brands when looking to set up a franchise in Vietnam?

Vietnam’s burgeoning market has witnessed expanding gross domestic product. Also, the modernisation of infrastructure and a dramatic increase in foreign direct investment (FDI) are all indicators that the country has transformed itself into an attractive investment destination. Despite a slump during the global financial crisis, the country has returned to pre-crisis growth patterns, a trend that is expected to continue. Infrastructure, tourism development, and the related real estate and retail sector development in urban areas are attracting significant FDI. However, the World Bank and International Finance Corporation rank Vietnam in 99th place in the world for ease of doing business, so it is essential for us to find a partner who is well versed in the complexities of establishing a business in the country, and has an intimate understanding of the regulations, formalities and cultural considerations.

What are the main competitors to Shakespeare in Vietnam?
While our goal is to expand the Shakespeare and Co. brand throughout the country, Ho Chi Minh City is a vibrant metropolis where we anticipate opening our first store, and ultimately a several branches throughout the city. We have identified a number of local concepts that bear slight similarities in terms of their menu offering, particularly in the districts 1, 2, 3, 5, 7 and Phu Nhuan. However, we feel that we bring something unprecedented to the local F&B scene, with our vintage inspired décor and breadth of product offerings including our classic French patisseries, homemade chocolates, viennoiserie and petit fours. As with any booming market, inevitably competition will be stiff and plentiful. The restaurant industry is notorious for being highly competitive. However, we have always believed that competition under the right circumstances can be healthy, particularly if there is an idyllic mix of concepts within a particular locale.
Source Vietnam Investment Review (VIR).