Lotteria: Great Leap in Vietnam Fast-food
In the 1990s fast-food in Vietnam grew sluggishly. But for the last two years the Vietnamese fast-food market has made great leaps forward. Lotteria, KFC and Jollibee brands have become favourites in the Vietnamese food and drink market. These are brands like Pho Vietnam (Vietnamese noodle), in South Korea, the United States and Japan.
From initial hardships
In 1996, Lotteria came to Vietnam and was the vanguard in the fast-food industry. At that time, Lotteria’s gastronomic concept was like a fish out of water in Vietnam. Only foreign customers, overseas Vietnamese and busy businesspeople were customers. Like other Southeast Asian nations, the Vietnamese people are accustomed to family meals prepared by housewives. Outstanding air-conditioned and luxury fast-food shops in red located near commercial centres couldn’t draw customers.
In the initial period Lotteria faced numerous difficulties in changing the routines and tastes of Vietnamese customers, who were accustomed to cheap pho (noodle), banh cuon (steamed rolled rice pancake) and hu tieu (noodle with seasoned, sauté beef). Vietnamese customers were used to enjoying hour-long meals at peaceful restaurants served by bartenders, fast-food shops were unusual in the eyes of Vietnamese people.
“The arrival of Lotteria in Vietnam was too early, and encountered lots of difficulties because of the absence of material sources. Moreover, it took a long time to have necessary ingredients. Our hamburgers had their own size and specification; hence, they took a long time to make. We even had to import wrappings from overseas inorder to maintain the quality standard. Therefore production costs were very high, and the products were expensive.
However, with over 60 per cent of Vietnamese people aged under 25, the boss of Lotteria was very optimistic for better business in Vietnam.