(18)Restaurants Struggling with Increased Rent Amidst the COVID-19 Pandemic

This article analyzes the crisis and opportunities facing Vietnam's food service industry due to the prolonged COVID-19 lockdown, and provides insights into the strategic considerations for Korean food service companies entering the market.

2021-12-20
(18)Restaurants Struggling with Increased Rent Amidst the COVID-19 Pandemic

Vietnam's food service industry has suffered significantly from the prolonged COVID-19 lockdowns. Major franchises like Highlands Coffee and Pho24, along with numerous smaller businesses, are struggling with rent and employee salary burdens. However, amidst this crisis lies an opportunity. Before the pandemic, Vietnam's food service market experienced rapid growth, and post-pandemic, the growth of the Vietnamese middle class and expansion of the domestic market are anticipated. The decrease in rent creates a favorable environment for Korean food service companies to enter the market. However, indiscriminate entry without considering the characteristics of Korean food is likely to fail. Understanding Vietnamese consumer preferences and culture, and developing localization strategies, are crucial for successful market entry. This article provides insights into the realities of Vietnam's food service industry and strategic considerations for Korean food service companies entering the market.

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