Foodservice Industry

Seminar 2018
Foodservice
Solutions
How is Decision Lab tracking
Foodservice Consumption?

• Since April 2016, Decision Lab is tracking the out of home eating and
drinking market in the key cities Hanoi, Ho Chi Minh City and Da Nang

• The Foodservice Monitor tracks all food & drink consumed out of home
on a daily basis with an annual sample size of 15,000 completed
interviews

• The respondents are Vietnamese consumers aged 15+ who also report
on the consumption by children (under 15 years) who were present at
the eating out occasion
Methodology

HOW WE TRACK OUT-OF-HOME

CONSUMPTION
We cover three main cities HA NOI.

40%

DA NANG

752,057 10%
ONLINE VIETNAMESE COMMUNITY MEMBERS

HO CHI MINH

Annual Sample: 50%

15,000
in HCMC, Hanoi, Danang are asked about what they ate
and drank out of home on the previous day
The data is extrapolated HA NOI.

based on the GSO’s yearly 5,204,798

population projection
DA NANG

750,561

12,387,681
Total HO CHI MINH

6,432,322
adult population
(Vietnamese aged 15 years old and above in
HCMC, Hanoi, Danang)
We monitor 7 Main Channels

FINE DINING FAST CASUAL

Average spend above Average spend under
VND110K per person). Fine VND110K per person & pre-
Dining is segmented by coded chains). Fast Casual is
cuisine type (Vietnamese, segmented by cuisine type
Japanese, Korean, Chinese, (Vietnamese, Japanese,
French, Mexican etc.. Korean, Chinese, French,
F U LL S E R V ICE Mexican etc.), Fast Casual
R E S TAUR A NTS example chains: Kichi Kichi,
( FS R ) Gogi House, Vietnammm,
Pizza Hut, Mon Hue, Thai
Express etc..
We monitor 7 Main Channels

QS COFFEE/TEA QS BBQ QS PIZZA

(Highlands Coffee, (Domino’s, Pizza Inn etc.)
QS JAPANESE
Starbucks etc.)
QS ICE CREAM
QS VIETNAMESE
QS BURGER (Fanny, Baskin Robbins
(McDonald’s, Burger King, QS CHINESE etc.)
Lotteria etc.)
Q U I C K S E R V ICE QS THAI QS JUICE/SMOOTHIE
R E S TAUR A NTS QS CHICKEN BAR
QS INDIAN
(QSR) (KFC, Jollibee etc.) (Jamba Juice, Jungle Juice
QS KOREAN etc.)
QS
SANDWICHES/WRAPS/ QS FRENCH QS OTHER
KEBAB/BAKERY
(Subway, Tous Les Jours QS MEXICAN
etc.)
We monitor 7 Main Channels

STREET FOOD A LCO H O L CO N V E N I E N C E H OT E L S CANTEEN

P L AC E S S TO R E S Establishments
Food & Drink bought • Workplace
from: providing
Outlets that mainly Standard convenience • School
accommodation,
• Wet market serve alcohol: store such as
meals, and other • University
• Bar FamilyMart, 7-Eleven
• Street vendor services for travelers
that also offers meals
• Mobile cart • Club and tourists.
(some heated up) to
• Karaoke eat on- or off-premise
Track record in F&B industry
How has 2018 been for
Vietnam’s Foodservice
industry?
LET’S TAKE A LOOK!
 AVERAGE EATER SPENDING/ VISIT (IN VND) AVERAGE ANNUAL VISITS / CAPITA
Vietnam
Foodservice HANOI TOTAL HCMC TOTAL

61,771 133
Monitor 4% 59,903 8% 8% 154 5%

HCMC HCMC

59,929 9% 170 5%

DA NANG DA NANG

49,236 15% 166 4%

KEY INDICATORS FOR YEAR

ENDING Q3 2018 40T 800M
Sales Visits 750M
35T
700M
30T
33.7T 650M
31.4T 31.6T 30.2T 31.6T
25T
29.7T 600M
28.0T 27.6T
20T 26.0T 25.6T 550M

500M
15T
450M
10T
478M 474M 496M 492M
436M 443M 453M 435M 452M 400M
5T
418M 350M

T 300M

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2016 2017 2018

The diverging
development paths of
FSR and QSR
• Market share of FSR & QSR across demographic groups - % visits

Market share of FSR and QSR across demographic groups - % visits

50%
These two
channels
39%
40% currently
34%
30% 30% account for the
30% 28% 28% 28%28%
25%
24%
22%
25% 25% 25% majority of
20% OOH visits by
consumers
10%
across all
0%
demographic
Male Female 15-24 25-34 35+ Ha Noi HCMC groups in
Gender Age group Location Vietnam
Full service Restaurants (n = 10,288) Quick service Restaurants (n = 7,293)

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018

14
• Market share of FSR & QSR - % visits and servings

Market share of Full Service (FSR) & Quick Service (QSR) restaurants - % visits and servings

35%
Full service
32% 33%
29% and Quick
30%
26% service
25%
21% 20%
restaurants are
20%
17% the two most
15%
14%
important
10% channels for
5%
Manufacturers
0%
of various
Total OOH visits Total Non-alcohol RTD Total Alcohol Total Dairy-based product
consumption consumption product consumption
categories
Full service restaurants (n = 10,288) Quick service restaurants (n = 7,293)

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018

15
• Visits to Full service & Quick service restaurants by quarter (in million)

Visits to Full Service (FSR) & Quick Service (FSR) restaurants by quarter (in million)

170M Starting from

150M 151M +11% Q3 2017, Full
150M 140M

144M
138M
145M
151M service
142M
130M
131M 129M
138M
114M
135M
122M
restaurants
109M
110M 118M 102M
98M
officially took
90M
over as the
-21%
largest
70M
Foodservice
50M channel in
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2016 2017 2018

Vietnam
Meanwhile, Quick service
Full service Restaurants (n = 10,288) Quick service Restaurants (n = 7,293) segment continued to slip away
from its past heyday.
Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018

16
The growth of Full service restaurants has been fueled
mostly by women, and consumers above 35 years old

Year over Year Traffic Growth rate of key demographic groups in FSR

20% 20%
20% 18%

15% Channel’s growth

12% 12% 12%
11%
10% 8%
7% 7%
4% 5%
5% 3%

0%
Male Female Ha Noi HCMC Da Nang 15-24 25-34 35+ Class A Class B Class C Class D

Gender Location Age group SEC

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018 n = 10288

17
• Visit and Average spending per head per visit to Full service Restaurants

Visit and Average spending per head per visit to Full service Restaurants (FSR)

160M
+11%
250K
Indeed,
151M
improving
138M
140M 131M 129M
145M
135M
142M
200K traffic has
118M been the key to
120M 150K
the revival of
100M 100K Full service
89K
78K
95K
83K 89K 85K 88K
77K
restaurants
80M 50K

-7%
60M 0K
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2016 2017 2018

Visits Average spending per head per visit

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018 n = 10288

18
Within Full service channel, Casual restaurants serving
BBQ and Japanese dishes are the ones with highest
growth rate in 2018
• YOY Traffic growth of key sub-segments in FSR

Market share of key sub-segments in FSR -

YOY Traffic growth of key sub-segments in FSR
% visits

FCR Vietnamese 60% 53%

1% 8% Fine Dining 40% 37%

1%
Vietnamese 40%
1% FCR Italian Kitchen
2% 20% 13%
2% FCR BBQ 5%
4% 3%
FCR Hotpot 0%

FCR Korean -20%

-23%
81% FCR Japanese
-40%
Other FCR FCR BBQ FCR Hotpot FCR Fine Dining FCR Korean FCR Italian
Japanese Vietnamese Vietnamese Kitchen

n = 10288 n = 10288

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018 19
Meanwhile, Quick service outlets have been suffering from
declining visits from all consumer groups, especially the
lower middle class and people aged 25+
• Year over Year Traffic Growth rate of key demographic groups in Quick service restaurants

Year over Year Traffic Growth rate of key demographic groups in Quick Service Restaurants (QSR)

Gender Location Age group SEC

Male Female Ha Noi HCMC Da Nang 15-24 25-34 35+ Class A Class B Class C Class D
0%

-10% -5%
-7%

-20% -16%
-18%
-22% -20% -20% Channel’s growth
-23%
-25% -21%
-30%
-32%
-35%
-40%

-45%
-50%

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018 n = 7293

20
Visit and Average spending per head per visit to Quick service Restaurants (QSR)

170M 250K
It is
151M plummeting
150M
138M 140M 200K footfall that
130M 122M has damaged
114M 150K
110M 102M
109M Quick service
98M
100K restaurants
90M 68K
58K 51K 54K 50K 52K
62K 57K over the past 2
70M
50K years
50M 0K
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2016 2017 2018

Visits Average spending per head per visit

21
Among various types of Quick service outlets, Cafes,
Bakeries and Juice/Smoothie shops are those that witness
the biggest drop in visits
Market share of key sub-segments in QSR -
% visits YOY Traffic growth of key sub-segments in QSR

Juice/
QS Fast Food Smoothie
QS Vietnamese Vietnamese Cafes Bakery restaurants shops
0%
8%
5% Coffee/Tea
8% 32%
Bakery -10%
-10%
Fast Food
-20% -17%
22%
Juice/ Smoothie -22%
25%
-30%
Other -29% -30%

-40%

n = 7293 n = 7293

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018
This does not mean Vietnamese are cutting down on
these products. On the contrary, consumption of coffee,
juice, and smoothies has increased in the past year

Coffee beverage* servings Juice & Smoothies* servings Baked goods* servings

400M 300M 6% 4%
27% 271M
329M 254M 567M
600M 543M
300M
258M
200M
400M
200M

100M
200M
100M

0M 0M 0M
Q4 2016 to Q3 Q4 2017 to Q3 Q4 2016 to Q3 Q4 2017 to Q3 Q4 2016 to Q3 Q4 2017 to Q3
2017 2018 2017 2018 2017 2018

* Include non-RTD, freshly prepared * Include non-RTD, freshly prepared *Baked goods include types of
drinks only n=2237 drinks only n=2805 bread, sandwich, cookies, cakes, etc. n=5206

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018
Vietnamese are switching to other channels to
consume these daily food and drink items, leaving
QSR to suffer

YOY Traffic growth with Coffee* YOY Traffic growth with Juice/Smoothie* YOY Traffic growth with Baked goods
consumption in channels - % visits consumption in channels - % visits consumption in channels - % visits

120% 120% 117% 120%

99%
100% 100% 100% 87%
80% 80% 80%
59%
60% 60% 60%
39%43%
40% 40% 40%
12% 18% 20% 19%
20% 20% 14% 20% 9%
6%
0% 0% 0%
-20% -3% -4%
-20% -9% -20%
-40% -29% -40% -40% -29%
Total OOH QSR Total OOH QSR Total OOH QSR
FSR Street food FSR Street food FSR Street food
CVS Canteen CVS Canteen CVS Canteen

*Including Non-RTD, freshly

*Including Non-RTD, freshly n=2237 prepared juice/smoothie only n=2805 n=5206
prepared coffee only

Source: Decision Lab’s Foodservice Monitor Aggregate data from Q4 2016 to Q3 2018
So, what are the key takeaways?
It’s a mixed bag of opportunity and challenges

Vietnamese have started to come back to Full However, their spending per visits has not really
service restaurants improved over the past year

It’s still a tough game for Quick service ➢ Operators do need to re-evaluate the effectiveness
restaurants, especially those selling Coffee/ Tea, of their promotional campaign and make some
Juice/ Smoothie, and Bakeries. changes that aim at higher consumer spending.

➢ Manufacturers should also look into how to present

and serve your products in a better way that can
bring up the check size.

The problem is not consumers’ declining

consumption of these products. It is the
competition from other low-end channels

➢ It’s highly time to differentiate and communicate to

your core consumer base.
The March of the
Women

26
“Women are the CEO of the
household. They often act as
the chief purchasing officer.
They purchase on behalf of
themselves, but also their
husbands and kids.”

Mary Van Note, partner of Ginger Consulting LLC, a Minneapolis-based branding firm
that’s served names in the industry such as Starbucks, McDonald’s, Taco Bell, and
Sonic Drive-In.

27
The myths about
female diners

28
MYTH 1:
Women are more
likely to be
concerned about
health when
eating out
Compared to men, a significantly lower proportion of women
state “health” as a driver to select a foodservice outlet

MEN WOMEN

16% 12%
C H O S E H E A LT H Y F O O D A N D C H O S E H E A LT H Y F O O D A N D
D R I N K S A S T H E R E A S O N TO V I S I T D R I N K S A S T H E R E A S O N TO
A C E R TA I N O O H O U T L E T C H O O S E A C E R TA I N O O H O U T L E T
Women are also less health-conscious about their food
selections than their counterparts

MEN WOMEN

19% 15%
C H O S E H E A LT H A S T H E R E A S O N C H O S E H E A LT H A S T H E R E A S O N
O F C E R TA I N F O O D C H O I C E O F C E R TA I N F O O D C H O I C E
Women only show more deliberate health concern when it
comes to the drinks they consume

MEN WOMEN

21% 26%
C H O S E H E A LT H A S T H E R E A S O N C H O S E H E A LT H A S T H E R E A S O N
O F C E R TA I N D R I N K C H O I C E O F C E R TA I N D R I N K C H O I C E
MYTH 2:
Women prefer to
sit down and enjoy
their meal on
premises
Women consume on-premises much less than men. They
instead show a higher preference for off-premises
consumption

MEN WOMEN

60% 47%
OF MALE OOH VISITS WERE ON OF FEMALE OOH VISITS WERE ON
PREMISE PREMISE
MYTH 3:
Women love a good
discount and would
use vouchers much
more than men
Women and men are not so different when it comes to using
vouchers/promotions for eating out

MEN WOMEN

6% 7%
OF MALE OOH VISITS UTILIZED OF FEMALE OOH VISITS UTILIZED
VOUCHERS VOUCHERS
Who are the typical female consumers in
the Out of Home market?

The 15-34 year-olds account for 82% 814 mil.

of the female visits, and more than FEMALE OOH VISITS IN THE PAST
half of the visits come from white- YEAR*

collar workers. Students are also

proven to be the driving force of • 15 - 34
female visits at 25%.
• White collar and students

• Classes C or D (SEC)

* Source: Decision Lab Foodservice Monitor Aggregate data from Q4 2017 to Q3 2018
To be fair, the traffic growth in the past year came from
both genders, with men bringing in the bigger increase

AVG . A NNUA L V IS ITS P E R C A P I TA

Q4-16 | Q3-17 Q4-17 | Q3-18

Male 172 183 7%

Female 121 128 5%

Decision Lab Foodservice Monitor Data from Q4 2016 to Q3 2018 n = 27591
However, male consumers’ spending has dropped
dramatically

Q4-16 | Q3-17 Q4-17 | Q3-18

70,230 đ 60,034 đ 15%

42
While female consumers have started to spend
visibly more

Q4-16 | Q3-17 Q4-17 | Q3-18

57,829 đ 59,732 đ 3%

43
YOY Average spending growth by Gender

20%
Indeed,
15%
16%
women have
10%
12%
spent more for
5%
5% 5% Out of Home
2% 2%

0%
1%
Male consumption
Female across all the
-5%
-4%
channels in the
-10%
-12%
-10%
-9%
past year
-15%

-20%

-25% -22%
FSR QSR Street food CVS Canteen Alcohol
places

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 27591

The boost in women’s spending partly comes from their
increased preference to consume both food and drink when
going out

YOY Traffic growth by consumption type – in % Average spending by consumption type – in VND

30%
23%
E AT ONLY
20% 16%

10%
42,907 VND
2%
0%
-2%
0% E AT & D R INK
-10%
-12% 81,224 VND
-20%
Eat only Drink only Eat & Drink

Male Female
FEMALE AVERAGE SPENDING IN TOTAL OOH

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 27591 n = 13339

45
As a result, women’s contribution to the market
revenue has increased by a whopping 10%

F R OM Q 4 2 0 1 6 – Q 3 2 0 1 7 FROM Q4 2016 – Q3 2017

TO Q 4 2 0 1 7 – Q3 201 8 TO Q4 201 7 – Q3 201 8

-8% +10%
MALE SALES CONTRIBUTION TO THE TOTAL OOH FEMALE SALES CONTRIBUTION TO THE TOTAL OOH

n = 14252 n = 13339

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018

Women consume Out of Home much more
than men during daytime snacking
occasions
3.7 billions
VISITS TO OOH OUTLETS IN
YEAR ENDING Q3 2018
32% Male Female
30%

31%
14% 24%
18%
12% Male visits are concentrated on
6% Breakfast and Lunch, while
11% 9% 9% female visits are more spread out
3% across occasions.
Breakfast Morning snack Lunch Afternoon snack Dinner Late night snack

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018

Preference in Full Service & Quick Service Restaurants by Gender - % visits

100%
When it comes
5%
to cuisine
7%
1%
8% 4%

80% 8% 12% selection,

12% 14% women are
60% 11% more keen to
try foreign
40%
65%
cuisine and
52% visit outlets
20%
that offer non-
0%
Vietnamese
Male Female dishes
VN Cuisine Coffee/Tea Bakery Non-VN Cuisine Juice/Smoothie Other

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 17578

Among the foreign cuisines, women are showing more and
more appetite for Hotpot, BBQ and Japanese food

YOY Traffic growth of cuisines in Foreign cuisines

100%
68% 68%
62%
47%
50%
27% 30%
19%
2% Male
0%
-2% Female
-13% -15%
-21% -27%
-50% -33%
-52%
-71%
-100%
Fast Food Italian Kitchen BBQ Hotpot Japanese Korean Other Asian Western

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 2962

*Low sample size (<30). Use with caution

Implications
FOR MANUFACTURERS
• For Food manufacturers, convenient
solutions for take-away and deliveries
to ease the off-premise consumption
will definitely get the interest of the
female population
• For Drink manufacturers, “health” is
important in your key product
message. In addition, make sure you
have products that capture women
during daytime snacking occasions.
FOR OPERATORS
• The growing influence of women on the foodservice market is
real: they are going out more and they are willing to spend
more
• They are not as health conscious when eating out as perceived
so no need to stress out on healthy food options for now.
• Make sure most of your offerings include both food and drink
items to capture women’s habit.
• Look into your menu to see if you can tailor particular items to
meet women’s snacking needs.
51
Vietnamese’ quest to
explore foreign
cuisine
Definitions

TOTAL CUISINE VIETNAMESE CUISINE

Quick service restaurants and Full service restaurants Quick service restaurants and Full service restaurants
that serve cuisines as below: specialized in Vietnamese cuisine. Pre-coded chains
• Vietnamese include:

• Fast Food • Mon Hue

• Italian Kitchen • Pho 24

• Western • 37th Street

• BBQ • Wrap & Roll

• Hotpot • Hoang Yen

• Japanese • Com Tam Cali

• Korean • Net Hue

• Other Asian (e.g. Chinese, Thai, Indian) • Pho 10 Ly Quoc Su

and etc.

*Quick Service outlets such as Coffee/Tea, Bakery,

Juice/Smoothie and Ice Cream are excluded
53
Definitions

FAST FOOD ITALIAN KITCHEN WESTERN

Quick service restaurants Full service restaurants specialized Quick service restaurants and Full
specialized in fast food. Pre-coded in Italian cuisine and pizza. Pre- service restaurants specialized in
chains include: coded chains include: higher-end burgers, French and
• KFC • Pizza Hut Mexican cuisines. Pre-coded
chains include:
• Lotteria • Pizza Company
• Al Fresco’s
• Jollibee • Pizza 4P’s
• Relish & Sons
• Domino’s Pizza • Capricciosa
• Jaspas
• Burger King • Pendolasco
• District Federal
• McDonald’s • Namo Artisanal Pizzeria
• Bonjour Resto
• Five Star Chicken and etc.
and etc.
and etc.

54
Definitions

BBQ HOTPOT JAPANESE

Quick service restaurants and Full Full service restaurants specialized Quick service restaurants and Full
service restaurants specialized in in Hotpot. Pre-coded chains service restaurants specialized in
BBQ, regardless of the grill style include: Japanese cuisine, including sushi,
(e.g. Western, Japanese, Korean…). • Kichi Kichi ramen and udon outlets. Pre-
Pre-coded chains include: coded chains include:
• Hutong – Hot Pot Paradise
• Quan Ut Ut • Sushi Hokkaido Sachi
• Ashima
• SumoBBQ • Tokyo Deli
• Hotpot Story
• Gogi House • Marukame Udon
• ThaiExpress
• King BBQ • Daruma
• MK Restaurants
• Tasaki BBQ • Sushi Kei
and etc.
• Mr. Park • YEN Sushi & Sake Pub
• Pepper Lunch • Sukiya
• Hotto • NamBento
and etc. and etc.

55
Definitions

KOREAN OTHER ASIAN

Quick service restaurants and Full service restaurants Quick service restaurants and Full service restaurants
specialized in Korean cuisine, including Korean fried specialized in Chinese, Thai and Indian cuisine. Pre-
chicken outlets. Pre-coded chains include: coded chains include:
• K-Food • Crystal Jade Kitchen
• Poki Poki • San Fu Lou
• Mi Han Quoc • Baozi
• Hanuri • Bamboo Dimsum
• GAXEO Chicken • Lac Thai
• Don Chicken • Tuk Tuk Thai Bistro
• Papa’s Chicken • Tandoor
and etc. • Spices
and etc.

56
Preference of cuisines in Full Service and Quick Service Restaurants - % visits

The
dominance of
Vietnamese
80% 5% 2%1%1%
1%
1%
%1% cuisine in the
Out of Home
market is
0% 20% 40% 60% 80% 100%
undisputable

Vietnamese Fast Food Italian Kitchen BBQ Hotpot

Japanese Korean Western Other Asian

*Full Service and Quick Service Restaurants, excluding Coffee/Tea, Bakery, Juice/Smoothie and Ice Cream n = 13730
outlets
Besides the obvious advantage of convenience, Vietnamese
cuisine claims its dominance thanks to the innate ability to
replace home cooked meals

Reason for outlet choice - % visits

60% 53%
47%
44%
41% 40%
40% 35% 36% 37%
32% 33% 33%
30% 31%
27%

20%

0%
Convenient Did not want to Quality of food Clean Taste of food Good value for Friendly service
location cook environment money

Vietnamese Cuisine Non-Vietnamese Cuisine

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 13730

58
Vietnamese dishes are typically chosen to satisfy hunger
quickly, conveniently, and at a good value for money

Reason for food choice - % visits

60%
51% 51%

40% 35%
30%
27% 27% 25%
24% 23% 22% 21% 21%
20% 17%
13%
10% 9% 9% 8%
6% 5%
2% 3%
0%
Favorite dish Convenience Good value Hunger To energize Health To share To eat alone To treat To try Other
for money myself something
Vietnamese cuisine Non-Vietnamese cuisine new

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 9511

59
Fast food, the biggest type of non-Vietnamese
cuisine consumed, has been suffering from a
significant lost of traffic year over year…
Market share of non-VN cuisines in FSR and QSR in year ending Q3 2018
- % visits Fast food outlet visits

1%

Fast Food

-17%
8%
BBQ
9%
Other Asian
39%
9% Hotpot
Italian Kitchen
10% Japanese YOY TR A F F IC G R O W TH
10% Korean
13%
Western

n = 2962

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018

YOY Traffic growth of non-VN cuisines

60%
…leaving the
49%
46%
37%
market to the
40%
23%
giant hands of
20% players
0%
specialized in
-6% BBQ, Hotpot
-20% -17% and Japanese
-40%
-40%
cuisine
-60%
-61%

-80%
Fast Food BBQ Other Hotpot Italian Japanese Korean Western
Asian Kitchen

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 2962

61
• YOY average spending growth of non-VN cuisines

Average spending per head per visit and YOY growth among types of Non-Vietnamese cuisine

271K 280K Among the 3

75%
225K
210K
191K
209K rising cuisines,
184K
Hotpot is the
105K
50%
42% only one that
enjoys the
25%
12%
16% luxury of
1%
5% increasing
0%
-2% -3%
consumer
-10% spending in the
-25%
Fast Food BBQ Other Hotpot Italian Japanese Korean Western
past year
Asian Kitchen

YOY average spending growth % Average spending in year ending 2018 (VND)

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n = 2962

62
Consequently, the market pie has shifted significantly:
further away from Western foods and heavily toward
Asian-centric cuisine

Market share of non-VN cuisines in FSR and YOY sales contribution growth of non-VN cuisines
QSR in year ending 2018 - % sales
80%
59%
51%
43%
Fast Food 38% 34%
40%
8%1% BBQ
23%
10% Japanese
Hotpot
0%
11%
Italian Kitchen
20% Other Asian -40% -25%
12%
Korean -42%
14%
Western -59%
-80%
Fast BBQ Japanese Hotpot Italian Other Korean Western
Food Kitchen Asian

n = 2962 n = 2962

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 63

Young female consumers are the core growth
engine for restaurants offering the 3 cuisines over
the past year

BBQ H OTP OT JA PA NE S E
YOY VISITS INCREASE YOY VISITS INCREASE YOY VISITS INCREASE

+4.0m +2.5m +2.8m

↓ ↓ ↓
73% FROM FEMALE 15-34 51% FROM FEMALE 25-34 51% FROM FEMALE 15-34
23% FROM MALE 25-34 33% FROM MALE 15-24

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 64

The drivers of consumer choice for these cuisines
may differ, but all hint at Vietnamese’ underlying
expectations toward a dining destination

BBQ Hotpot Japanese

Restaurants: Restaurants: Restaurants:

CELEBRATION/ TREAT GOOD FOR SOCIALIZING QUALITY OF FOOD/DRINK

QUALITY OF FOOD/DRINK SPECIAL OCCASION HEALTHY OFFERINGS
CELEBRATION
FRIENDLY SERVICE GOOD VALUE FOR MONEY
CLEAN ENVIRONMENT
BBQ restaurants have become more attractive
destinations for dinner, while Hotpot and Japanese
outlets enjoy increasing footfall during lunch

31% 48% 30.7 million

TOTAL VISITS IN YEAR ENDING
Q3 2018

40% 42%
BBQ and Japanese cuisine are
more preferred for dinner, while
38% 50% Hotpot strikes a balance and is
equally chosen for both meals.
Lunch time Dinner time

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018

• Party size - % visits

Party size by cuisine - % visits

100%
Hotpot and
21% 19% BBQ
80%
35%
restaurants
27% show amazing
60%
44% capability to
39% accommodate
40%
consumers’
55% needs across
20%
35%
27% different party
0%
sizes
BBQ Restaurants Hotpot Restaurants Japanese Restaurants

<=2 people 3-4 people 5+ people

Source: Aggregate Foodservice Monitor data from Q4 2016 to Q3 2018 n=602

So, what are the key takeaways?
Vietnamese eat Vietnamese food, but they have
also shown more appetite for BBQ and Asian-
centric cuisine such as Hotpot and Japanese
foods.
Young female consumers are the growth
engine of restaurants offering these cuisines.
➢ To Operators currently in these winning
segment, stay focused, listen to your consumers
and be ready to adapt as competition from new
and current players is definitely getting more
fierce.
➢ To all Operators that specialize in foreign cuisine,
look into how you can adapt some of these
restaurants’ success drivers, e.g. facilitative
environment for special occasions, appeal to
women, great service, exciting interaction
between consumers and food, etc.
➢ To Drinks and Fresh food Manufacturers, focus
your effort in winning BBQ, Hotpot and Japanese
chains if you are looking for growth.
Reach out to us
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