Burger King, the US fast-food chain, has closed all of its stores in Hanoi after more than a decade and reduced its presence in Ho Chi Minh City.
The operating partner, local conglomerate Imex Pan Pacific Group (IPPG), which boasts dozens of competing retail brands in its portfolio, confirmed that all Hanoi locations stopped operations about two months ago. Closures were implemented over one to two months, depending on the site. Burger King previously ran three stores in the city.
Now, access to the brand’s products in Hanoi is limited to an outlet in the city’s airport. In Ho Chi Minh City, operations have also been scaled back, with just three locations remaining outside the airport, including one in the backpacker hub of Phạm Ngũ Lão.
The brand was founded in the US in 1954 and entered Vietnam in 2012 through a franchise agreement with IPPG. At the time of its launch, it projected it would open 60 stores within five years, but by 2016 had only 16, including at Ho Chi Minh City’s airport, where – airside – it charges customers in US dollars.
After an early expansion period, the network has reduced its footprint over time. Some observers attribute this to cost structures and business performance. A model based on common international standards, including requirements for inputs, processes and quality control, can involve higher operating costs. When traffic and revenue fall short of expectations, maintaining operations becomes more difficult.
From a franchise perspective, IPPG focuses on an expanding portfolio of luxury retail, apparel, and travel-related businesses. The company says it operates more than 1000 stores, partnering with 138 brands, and building an increasing footprint at airports, border gates and shopping centres.
Johnathan Hanh Nguyen, chairman and founder of IPPG, told Cafe Biz in 2019 that site selection is a factor in franchise operations. He said store location, design and service standards affect brand visibility and business performance.
While some distributors prioritise scale and coverage, newer operators such as The Kho Group (TKG) position themselves around lifestyle positioning, with an emphasis on selected brand selection and customer experience. Instead of a wide rollout, projects are implemented selectively in cities including Ho Chi Minh City, Hanoi, Da Nang and Phu Quoc.
Projects such as Malbon are developed as lifestyle spaces with two-level layouts and integrated community functions. Market analysis indicates TKG studies consumption patterns and behaviour before launch, and measures outcomes through brand engagement and repeat visits rather than revenue alone.
The contrast between these models reflects different approaches to licensing and franchising in Vietnam. Some distributors prioritise network scale and traffic, while others focus on curation and a unique offering, investing in store design and brand experience.
In a market with multiple brands, newer distributors are adopting the latter approach.
