Fast food chains battle in Vietnam

Fast food chains continue to target Vietnam as McDonald’s meets with early success.

Having opened its first outlet in February, McDonald’s, through its local partner Good Day Hospitality, plans further opening across the city and beyond.

Its first outlet at 2-6 Bis Dien Phu, District 1 spans 1300 sqm, and is its third largest store in the world. A second will open soon in the popular tourist and backpacker zone of Pham Ngu Lao.

Henry Nguyen, owner of Good Day Hospitality and the son-in-law of prime minister Nguyen Tan Dung, says the performance of the first outlet exceeded expectations.

Bullish about its prospects, McDonald’s plans to expand in Hanoi in the second quarter of the year.

BBQ Chicken, also plans to aggressively expand its footprint with hundreds of outlets planned for Vietnam.

Meanwhile, KFC, which entered Vietnam 17 years ago and now has 180 outlets, is slowing down its expansion pace, facing stiff competition from rivals such as Burger King, Popeyes and Dunkin Donuts.

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