social enterprise
MARKET DISCIPTION
FULL-SERVICE RESTAURANTS IN VIETNAM HEADLINES
• Current value sales increase by 6% in 2009 to reach VND234.4 trillion
• The number of outlets grows by 1% in 2009 to reach 79,000
• Growth rates slow down in 2009 due to the economic crisis but demand remains high
TRENDS
• The overall performance of FSR in 2009 was positive given the economic crisis. FSR consumers are mainly affluent people in urban areas who are willing to pay more for good food, a pleasant ambience and outstanding customer service. They are visiting FSR more frequently, enjoying the indulgence and opportunity to spend quality time with friends and family, celebrate special occasions or for business and networking. Therefore, consumer demand in this category, recently fuelled by rising personal incomes and modern lifestyles, is quite resilient despite the negative effects of the economic crisis.
• However, consumer spending in FSR slowed down as a result of people cutting back on luxury consumption. Thus, many FSR owners decided to delay their outlet expansion plans or new brand launches and wait for signs of economic recovery. Since FSR often requires much higher initial investment and capital than other consumer foodservice types, it is understandable that investors in this category are usually more risk-averse. As a result, current value sales growth of 6% in 2009 was slower than the review period CAGR.
• The most popular restaurant type in Vietnam remains Asian FSR. The saturated number of participants in the category makes competition much tougher. Meanwhile, the strong development of Western FSR increased the difficulties for Asian FSR as more young Vietnamese consumers turn to foreign cultures and cuisines. Seeking differentiation, many Asian FSR invested heavily in decor and service quality while others improved their menu, frequently adding new items to lure customers. Am emerging Asian FSR type is countryside-themed restaurants, which offer
FULL-SERVICE RESTAURANTS IN VIETNAM HEADLINES
• Current value sales increase by 6% in 2009 to reach VND234.4 trillion
• The number of outlets grows by 1% in 2009 to reach 79,000
• Growth rates slow down in 2009 due to the economic crisis but demand remains high
TRENDS
• The overall performance of FSR in 2009 was positive given the economic crisis. FSR consumers are mainly affluent people in urban areas who are willing to pay more for good food, a pleasant ambience and outstanding customer service. They are visiting FSR more frequently, enjoying the indulgence and opportunity to spend quality time with friends and family, celebrate special occasions or for business and networking. Therefore, consumer demand in this category, recently fuelled by rising personal incomes and modern lifestyles, is quite resilient despite the negative effects of the economic crisis.
• However, consumer spending in FSR slowed down as a result of people cutting back on luxury consumption. Thus, many FSR owners decided to delay their outlet expansion plans or new brand launches and wait for signs of economic recovery. Since FSR often requires much higher initial investment and capital than other consumer foodservice types, it is understandable that investors in this category are usually more risk-averse. As a result, current value sales growth of 6% in 2009 was slower than the review period CAGR.
• The most popular restaurant type in Vietnam remains Asian FSR. The saturated number of participants in the category makes competition much tougher. Meanwhile, the strong development of Western FSR increased the difficulties for Asian FSR as more young Vietnamese consumers turn to foreign cultures and cuisines. Seeking differentiation, many Asian FSR invested heavily in decor and service quality while others improved their menu, frequently adding new items to lure customers. Am emerging Asian FSR type is countryside-themed restaurants, which offer