Mcdelivery™ vietnam

Photo by Lyman Geromãng cầu on UnsplashWhen McDonald’s first arrived in Vietnam giới in năm trước, it was received with a warm welcome.

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The locals waited in long queues to tantalize their taste buds with a new breed of burgers. A whopping 400,000 customers happily spent their money on this new sensation in the first month itself.

It seemed lượt thích McDonald’s was going lớn be a big thing in this East Asian country. However, in business, the reality is often different than predictions.

As of now, McDonald’s only has around 22 outlets in the entire country. Let’s take a look at why the company stagnated và failed khổng lồ expand in Vietphái nam.


Reason 1: Mcdonald’s Fast Service Wasn’t Faster Than Vietnamese Cuisine
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Pholớn by Matthew Hamilton on Unsplash

In Vietphái nam, the concept of fast-food has existed for a long time. Whether it’s pho or a banh mi sandwich, the customer had local options that they could have on-the-go.

Pho is a Vietnamese noodle soup that the local vendors can prepare in seconds. Generally, all they need to lớn bởi vì is put the solid ingredients in a bowl followed by hot water & other liquid ingredients, such as broth.

Banh mi is a type of sandwich on a baguette, và it doesn’t take long for locals lớn cut a baguette và put the good stuff inside.

So McDonald’s unique selling point — that is, offering fast service — didn’t even matter because the locals could get faster service from traditional Vietnamese food outlets.


Reason 2: The Local Competition Was Tough
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Photo lớn by Harvey Enrile on Unsplash

As of 2018, there were around 540,000 food outlets in Vietphái nam — almost 430,000 out of which were local vendors.

For decades, there has been a flourishing street-food culture in this country. Food is readily available, whether it's on l& or water. Yes, you can even buy food from vendors who run their business from a boat (as shown in the picture above).

Compare this with McDonald’s — a fast-food restaurant that has a menu mostly comprised of burgers and drinks.

The locals didn’t want to lớn settle for a limited range of items because they had a lot of options — a lot of ‘cheaper’ & ‘traditional’ options.


Reason 3: The Vietphái mạnh War Had Created Political Hurdles
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Photo by Conner Baker on Unsplash

The Vietphái mạnh War was one of the most devasting chapters of mankind’s recent history. Many passed away, and some of the people who survived lived with physical injuries or post-traumatic căng thẳng disorder.

The severe bitterness between the U.S. and Vietnam closed trade for many years. But in 1995, the leaders of both nations decided to bury the hatchet và re-open their doors for commerce.

In 1997, KFC’s opening marked America’s re-entry inkhổng lồ Vietnam giới. This time, it wasn’t for war, but khổng lồ chia sẻ some delicious American food.

However, there was a problem. During all these years when Vietnam didn’t allow American businesses khổng lồ enter their country, the gap in the market for food outlets was filled by local business owners.

For this reason, American franchises struggle when entering a jam-packed Vietnamese market lớn this day.


Reason 4: McDonald’s Used the Western Pricing Strategy in the East
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Photo by Andrew Leu on Unsplash

As of today, a Big Mac in Vietphái mạnh costs $2.82. It seems reasonable if you’re living in the West and earning a Western income. However, for the local customers, this is a premium price & something they’d only spkết thúc every once in a while.

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According lớn Numbeo, a meal at a local Vietnamese restaurant costs around VND 50,000 ($2.16), whereas a meal at a McDonald’s outlet can range up lớn twice as much, which is VND 100,000 ($4.32).

The idea of paying double for a burger, a glass of Coke, & some fries didn’t appeal lớn the Vietnamese customers. Even though there are local adaptations in the menu, such as chicken rice and grilled pork rice with egg, the vast majority of customers weren’t financially prepared lớn visit McDonald’s frequently.


Reason 5: McDonald’s Menu Didn’t Coincide With the Local Culture of Sharing Food
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Phokhổng lồ by Quốc Trung on Unsplash

Not adapting well khổng lồ the local culture is why Starbucks failed in nước Australia and KFC failed in Israel.

Although the locals like a quichồng pho from time to time, that’s not what they always eat. In the Vietnamese tradition, it’s not uncomtháng for the whole family (or a bunch of friends) to lớn sit together and nội dung their food with each other.

First of all, burgers can’t be shared unless someone’s OK with teeth marks on the bun. In short, no, burgers are not the type of food that most people would want to lớn nội dung. Secondly, the ‘eat fast and make room for new customers’ type of culture that fast-food chains have doesn’t really match with the ‘sit baông xã, relax, and mô tả your food’ culture of Vietnam giới.


Conclusion

Entering crowded markets can be extremely challenging — whether you’re a self-employed freelancer or an enormous corporation.

It’s easy to enter a market, but sustaining a business và getting a sizeable portion of the pie is a whole different story.

McDonald’s has lớn compete with hundreds of thousands of local businesses with around a couple dozen of its outlets. Not that they’re retreating from the country like they withdrew from Icelvà, but the lack of growth is not a good indication for the company’s future.

What are your thoughts on the future of McDonald’s in Vietnam?


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