Leading restaurant chains in Vietnam 2023, by number of stores

A report by Q&Me revealed that as of March 2023, Lotteria and KFC were the leading fast-food restaurant chains in Vietnam by number of stores, with 160 and 145 outlets, respectively. According to the source, the number of chain restaurants in Vietnam totaled over 1.4 thousand that year.

Growth of the fast-food industry in Vietnam

KFC and Lotteria were among the first international chains to enter the Vietnamese fast-food market in the late 1990s. Over the next decade, the fast-food industry enjoyed substantial growth and popularity among Vietnamese diners, particularly among the younger generations. However, in the mid-2010s, the American fast-food giant McDonald’s struggled to gain a foothold in Vietnam’s crowded fast-food scene despite their global dominance. As of 2021, McDonald’s reportedly operated and franchised over 40 thousand restaurants in over 100 countries worldwide. Out of these, just 20 were located in Vietnam.

Vietnam’s F&B market on the rise of food delivery services

Quick-service restaurants looking to enter the Vietnamese F&B market would need to compete against the country’s street food sector. Amid the fast-food craze, street vendors and food stalls have remained the most prevalent type of food and beverage business in Vietnam. However, 2020 was a difficult year for Vietnam’s F&B market when the COVID-19 pandemic posed significant challenges to the country’s economy. As a result, food delivery services has witnessed significant growth to meet the needs of the population during the lockdown period. Fast-food restaurants, on the other hand, were better able to adapt to the trend by utilizing online delivery services even after the lockdown was lifted. According to a survey conducted among Vietnamese consumers, around 60 percent of respondents revealed that they had ordered fast food on delivery apps, as of April 2023.