McDonald’s in Vietnam: Let the burger war begin

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mcdonaldsVietnam may be closer to biting into its first Big Mac than earlier expected, but when McDonald’s finally opens its first outlet it’ll find itself amid a crowded food court.

McDonald’s highly publicised entrance into Vietnam – originally thought to arrive by 2014 – could come before that date, with two outlets opening in Ho Chi Minh City, Vietnamnet, an online news portal, quoted an unnamed source as saying.

McDonald’s has 33,500 franchised agents in 119 countries around the globe, but has avoided the Vietnamese market up until now. Economists typically view the entrance of the multinational fast food chain into emerging markets as a cachet that heralds the flow of other Western brands, but McDonald’s is no frontrunner this time around.

Vietnam’s fast food market is currently dominated by KFC, Pizza Hut, South Korea’s Lotteria and the Filipino chain Jollibee, as well as Burger King, which has begun to branch out.

While McDonald’s is hashing out terms to get the right potato, it is very likely that Burger King will expand following a six-month pilot programme at the Tan Son Nhat airport in Ho Chi Minh City and Noi Bai in Hanoi.

Burger King reportedly plans to now open up outlets in 11 districts in Ho Chi Minh City, six in Hanoi and some shops in the central area of Da Nang City and Hoi An ancient town.

The key ingredient that would bring McDonald’s into the burger fray in 2013 is if a local partner is hastily identified to supply fresh materials.

Another issue is that Vietnam’s import tariffs for potatoes are high, while local potatoes are exposed to an unacceptable amount of humidity that would change the taste of McDonald’s signature French fries.

Faced with the decision of selling fries with an offbeat flavour, McDonald’s may just prefer to stay out a bit longer.

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Reading Time: 2 minutes

Vietnam may be closer to biting into its first Big Mac than earlier expected, but when McDonald’s finally opens its first outlet it’ll find itself amid a crowded food court.

Reading Time: 2 minutes

mcdonaldsVietnam may be closer to biting into its first Big Mac than earlier expected, but when McDonald’s finally opens its first outlet it’ll find itself amid a crowded food court.

McDonald’s highly publicised entrance into Vietnam – originally thought to arrive by 2014 – could come before that date, with two outlets opening in Ho Chi Minh City, Vietnamnet, an online news portal, quoted an unnamed source as saying.

McDonald’s has 33,500 franchised agents in 119 countries around the globe, but has avoided the Vietnamese market up until now. Economists typically view the entrance of the multinational fast food chain into emerging markets as a cachet that heralds the flow of other Western brands, but McDonald’s is no frontrunner this time around.

Vietnam’s fast food market is currently dominated by KFC, Pizza Hut, South Korea’s Lotteria and the Filipino chain Jollibee, as well as Burger King, which has begun to branch out.

While McDonald’s is hashing out terms to get the right potato, it is very likely that Burger King will expand following a six-month pilot programme at the Tan Son Nhat airport in Ho Chi Minh City and Noi Bai in Hanoi.

Burger King reportedly plans to now open up outlets in 11 districts in Ho Chi Minh City, six in Hanoi and some shops in the central area of Da Nang City and Hoi An ancient town.

The key ingredient that would bring McDonald’s into the burger fray in 2013 is if a local partner is hastily identified to supply fresh materials.

Another issue is that Vietnam’s import tariffs for potatoes are high, while local potatoes are exposed to an unacceptable amount of humidity that would change the taste of McDonald’s signature French fries.

Faced with the decision of selling fries with an offbeat flavour, McDonald’s may just prefer to stay out a bit longer.

Do you like this post?
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