{"id":17,"date":"2020-07-13T21:24:39","date_gmt":"2020-07-13T21:24:39","guid":{"rendered":"http:\/\/5f095a570f36fe0018510abb"},"modified":"2020-08-08T03:58:28","modified_gmt":"2020-08-08T03:58:28","slug":"why-mcdonalds-burger-king-failed-in-vietnam","status":"publish","type":"post","link":"https:\/\/2dpoint.net\/why-mcdonalds-burger-king-failed-in-vietnam\/","title":{"rendered":"Why McDonald’s & Burger King failed in Vietnam?"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Reason 1: Burgers are expensive<\/strong><\/li>\n
A burger meal in Vietnam (burger + fries + coke) costs $3, while a roast pork banh mi (sandwich) costs $0.5 and in $1 you could get a whole Vietnamese lunch meal.<\/li>\n
The incomes (most people earn less than $500 monthly) are low but eating out is very popular, e.g. most people eat breakfast not at home but at a food stall on their way to work or school.<\/li>\n
So, burgers work out too expensive to sustain this culture of regular eating-out.<\/li>\n
Reason 2: Burgers are not fast enough<\/strong><\/li>\n
Based on global standards, most American burger outlets have certain space and layout requirements and thus open in large supermarkets, tourist destinations, shopping complexes etc.<\/li>\n
So, people have to park, go to a burger outlet, queue up for ordering and then wait for food.<\/li>\n
On the other hand, almost every street in major cities has various street-food stands, where you can leave your bike right next to a food-stand and get your meal in under a minute.<\/li>\n
E.g. for
\nPho, <\/em>
\nthe vendor can pour the soup from a
\n,big pot simmering over low heat,
\nadd solid ingredients and serve you in seconds.<\/li>\n
Reason 3: Burgers are not meant for sharing<\/strong><\/li>\n
Vietnam war<\/u><\/a> had left Vietnam a very poor country and even the richest couldn\u2019t afford 3 meals a day; that made the already-existing culture of food-sharing even more pronounced.<\/li>\n
Today, it is common for people to just have their individual rice bowls, and meat or fish is taken from a communal dish, then dipped into common fish sauce & then transferred to individual rice bowl.<\/li>\n
And burgers are not naturally meant for sharing and many consider this a huge deterrent – Pizzas don\u2019t have such constraints and can part-explain Pizza Hut\u2019s success (it has a foreign-food market share of over 20%, while McDonald’s & Burger King together are less than 5%).<\/li>\n
Reason 4: Late entry<\/strong><\/li>\n
Vietnam opened its economy in mid-1980s and by mid-1990s, food franchising was allowed; KFC (US), Jollibee (Philippines) & Lotteria (Japan) entered the market between 1997-2005, so Burger King (2011) & McDonald\u2019s (2014) were late to enter an already crowded food market.<\/li>\n
It took 7 years for KFC to open 10 restaurants and today KFC has 130+ stores, but people don\u2019t go their for \u2018fast & cheap food\u2019 but for a special-occasion-experience & air-conditioning to beat the heat; McDonald’s & Burger King may also succeed one day but so far their performance has been underwhelming.<\/li>\n<\/ol>\n
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