{"id":26929,"date":"2025-07-05T00:10:29","date_gmt":"2025-07-04T17:10:29","guid":{"rendered":"https:\/\/dps.media\/mo-hinh-kinh-doanh-theo-chuoi-3-thach-thuc-ma-nganh-fb-doi-mat\/"},"modified":"2025-07-05T00:10:37","modified_gmt":"2025-07-04T17:10:37","slug":"business-model-according-to-the-3-challenge-chain-that-the-fb-industry-faces","status":"publish","type":"post","link":"https:\/\/dps.media\/en\/business-model-according-to-the-3-challenge-chain-that-the-fb-industry-faces\/","title":{"rendered":"Business Model by Chain \u2013 3 Challenges Faced by the F&B Industry"},"content":{"rendered":"

The business model of restaurant chains or coffee shops (F&B), though developing \u201chotly\u201d, has never been easy for insiders. Even giants like McDonald's and Burger King have not been as successful as desired in Vietnam. So what are the main causes leading to this situation? And what are the decisive factors for the success of this chain business model in the Vietnamese market? In this article, DPS<\/a> will answer the above question in detail.<\/span><\/p>

I. The current state of the F&B chain business model in Vietnam.<\/span><\/h2>

1. Forecast<\/span><\/h4>
\"predicting
F&B is one of the most \u201cvibrant\u201d sectors in Vietnam with a growth rate of approximately 18% per year.<\/span><\/figcaption><\/figure>

Food and Beverage (F&B) is one of the most \u201cvibrant\u201d sectors in Vietnam. It accounts for 15% of GDP in 2018 and has a stable annual growth rate of 7% (Wang, 2020<\/a>).<\/span><\/p>

Vietnam's F&B industry in the period 2014 \u2013 2019 had a growth rate of approximately 18% per year according to Euromonitor<\/a>. This figure is forecast to continue increasing as economic and social development leads to improved living standards. Especially as the middle class in Vietnam is growing.<\/span><\/p>

Indeed, according to calculations by Nielsen<\/a>, Vietnam had about 33 million people classified as middle class in 2022 and this will increase to about 95 million people by 2030.<\/span><\/p>

What are the criteria that Nielsen uses to define the middle class? There are 2 criteria to identify this class. First, households with consumption spending over 15 USD\/person\/day. The other criterion is that their total spending on food and beverages accounts for 30% to 40% of total income.<\/span><\/p>

Meanwhile, the predicted revenue of the F&B industry is about US$665 before 2024 and with an average growth rate of 8% per year in the period 2020-2024 (Statista, 2020<\/a>).<\/span><\/p>

2. Major \u201cgiants\u201d in the F&B industry in the Vietnamese market<\/span><\/h4>

Precisely because of the enormous development potential of the F&B industry, the battle for market share has never cooled down. From Golden Gate, Redsun, Huy Vietnam company and IPP Group<\/a>.<\/span><\/p>

2.1. Golden Gate<\/span><\/h4>
\"Golden
Golden Gate \u2013 the \u201ctycoon\u201d in the F&B field, owning more than 300 chain stores nationwide.<\/span><\/figcaption><\/figure>

Golden Gate Trading Joint Stock Company \u2013 Golden Gate<\/a> is the company holding the overwhelming market share in the Vietnamese F&B market. Currently, Golden Gate operates and owns nearly 300 stores across the country, including many famous brands loved by young people: Kichi-Kichi, Sumo BBQ and Vuvuzela, etc. The spectacular \u201ctransformation\u201d of Golden Gate is assessed by many economic experts as being due to \u201cmassive\u201d capital injection plus support for relationships with experts in the culinary field from Standard Chartered<\/a> and Mekong Capital<\/a>.<\/span><\/p>

2.2. Redsun<\/span><\/h4>
\"Redsun
Redsun, Golden Gate's competitor in the same segment, is not far behind with 200 chain stores in 26 provinces and cities.<\/span><\/figcaption><\/figure>

Considered a competitor of Golden Gate in this same segment is none other than Red Sun Trading Investment Management Joint Stock Company \u2013 Redsun<\/a>. Currently, Redsun owns more than 200 stores in 26 provinces and cities nationwide. However, Redsun's operational efficiency is not highly rated. In 2018, revenue reached over 620 billion VND, up 14% compared to 2017; however, Redsun's pre-tax profit was only 1.4 billion VND.<\/span><\/p>

2.3. Huy Vietnam Company<\/span><\/h4>
\"Huy
Huy Vietnam Company had to pay with its very \u201clife\u201d for mistaken steps in developing the restaurant chain business model.<\/span><\/figcaption><\/figure>

The beginning of Q4 2019 witnessed the \u201cdeparture\u201d of the chain business model of Huy Viet Nam Company (Mon Hue Restaurant) after more than 12 years of existence and development in the market. In addition, the company had previously succeeded with many Vietnamese culinary brands such as: Pho Ong Hung, Com Tho Chay, Pho 99, etc. However, strategic missteps in business orientation caused the company to lose ground in the market share battle.<\/span><\/p>

2.4. Franchising<\/span><\/h4>

It would truly be an omission not to mention a new but rapidly developing trend: franchising brands. A typical example is IPP Group with brands including: Burger King, Domino\u2019s Pizza, or Popeyes\u2026 who are also striving to win over Vietnamese tastes.<\/span><\/p>

3. Covid19 \u2013 the major \u201cshockwave\u201d for the chain restaurant business model.<\/span><\/h3>

All the above data was very positive until the \u201cearthquake\u201d named COVID19 spread its obsession over almost all sectors. But perhaps the most affected is the F&B industry.<\/span><\/p>

When the revenue of the restaurant chain business model dropped significantly compared to pre-pandemic times. However, large companies like Golden Gate had already prepared scenarios for when \u201cstorms\u201d arose. In terms of raw materials, the company was not greatly affected because from the start they had diversified import markets. In addition to updating information about the epidemic, Golden Gate's chain stores also implemented disease prevention measures to build customer trust when coming to the restaurant, such as:<\/span><\/p>