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McDonald’s Opens in Vietnam

McDonald’s Opens in Vietnam

McDonald’s is opening its first unit in Ho Chi Minh City

Wikimedia/Karel Schmiedberger ml.

McDonald's is opening its first restaurant in Vietnam in Ho Chi Minh City today.

McDonald’s has restaurants in more than 100 countries around the world, and as of today it will have an outpost in one more because the fast-food giant is opening a new outpost in Vietnam.

According to the New York Times, McDonald’s first Vietnam location is located in Ho Chi Minh City, and its first local franchisee is Henry Nguyen, the son-in-law of Vietnam’s Prime Minister Nguyen Tan Dung. KFC first opened a restaurant in Vietnam in 1997, but the Times reports that U.S. restaurant brands did not start actively entering the Vietnamese market until 2010. KFC now has 134 locations in Vietnam, and Pizza Hut has 34, but Asian restaurant brands still dominate the market by a fair margin.

U.S. quick-service brands usually market themselves in Asia as “a lifestyle choice for the middle class,” according to the Times, rather than as a budget food option. A meal at a Burger King in Hanoi is around $3, which is twice the price of a bowl of pho from a nearby shop.

“That food may be tasty, but it’s expensive for normal Vietnamese,” the proprietress said.

While there can be logistical issues with establishing distribution and refrigeration systems and adjusting menus to appeal to local palates, the Vietnamese market is expected to be a big opportunity for restaurant brands. Vietnam’s foodservice industry is predicted to reach $670 million by 2015.


First McDonald's to open in Vietnam

A sign for a McDonald's restaurant pictured in front of an American flag in Miami, Florida on July 23, 2012. McDonald's said Tuesday it would launch its first restaurant in communist Vietnam next year after granting a franchise to the son-in-law of Prime Minister Nguyen Tan Dung. (Getty Images/AFP/File)

HANOI (AFP) – McDonald's said Tuesday it would launch its first restaurant in communist Vietnam next year after granting a franchise to the son-in-law of Prime Minister Nguyen Tan Dung.

The American fast food giant said it planned to open in the southern business hub Ho Chi Minh City in early 2014 after making businessman Henry Nguyen its "developmental licensee".

"As we grow our presence in the Asia region, we are looking for partners with a blend of strong business acumen and a unique understanding of our brand," said Dave Hoffmann, president of McDonald's Asia Pacific, Middle East and Africa region.

The son-in-law, also known as Nguyen Bao Hoang, flipped burgers for McDonald's while growing up in America -- where his family fled in 1975 at the end of the US-Vietnam war -- but returned to his native country over a decade ago and now works at IDG Ventures Vietnam, a venture capital group.

"I have dreamed of one day opening a McDonald's restaurant in my native country ever since my return to Vietnam more than a decade ago," Henry Nguyen said in a statement.

Fast food giants such as KFC, Burger King, Subway and Pizza Hut already have restaurants in Vietnam alongside dozens of local chains.

In February Starbucks opened its first store in Ho Chi Minh City. It has proved highly popular with young Vietnamese who form long queues to get Western-style lattes and frappes.

The entry of McDonald's into the Vietnamese market highlights the attractiveness of the roughly 90 million population and rapidly expanding middle class, despite the country's current economic slowdown and lingering banking crisis.

Although US food and drinks -- including other iconic brands such as Coca-Cola - were available in South Vietnam until the end of the war, the companies pulled out after the communist victory which paved the way for the unification of the country in 1975.

Coca-Cola re-entered the Vietnamese market after "Doi Moi" economic liberalisation and normalisation of ties with the US in the 1990s, although the company is currently subject locally to a consumer boycott over alleged tax avoidance.


McDonald's opens first outlet in Vietnam's Ho Chi Minh

Hundreds of people queued for the opening of the restaurant in the southern city of Ho Chi Minh, AFP says.

Ho Chi Minh, known as Saigon during the Vietnam War, was where the US-backed government was based until it fell to communist forces 38 years ago.

The restaurant is being run by the prime minister's son-in-law.

Henry Nguyen flipped burgers at a McDonald's restaurant while a teenager growing up in the United States, where his family fled at the end of the war.

He said last July, after winning the franchise, it had been his dream to open a McDonald's since returning to Vietnam more than a decade ago.

The move underlines Vietnam's hunger for Western consumer brands and the attractions for foreign investors, say observers.

Despite the Vietnamese economy's recent slowdown, foreign brands are popular among the youthful population whose parents had few of the food and lifestyle options now available in the country.

Starbucks, Subway, Burger King, and KFC all have a presence there.

Mr Nguyen is the founder of travel and food group Good Day Hospitality and managing general partner of investment firm IDG Ventures Vietnam.


McDonald’s Opens in Vietnam - Recipes

Vietnam's fast food market is predicted to become even more exciting as McDonald's Vietnam has recently decided to launch a new strategic item: crispy fried chicken.

McDonald&rsquos expects to trigger a new wave in Vietnam&rsquos fast food sector by adding a dish familiar to the vast majority of the population, especially the younger generation: crispy fried chicken. There are still challenges the famous fast food chain must deal with, however, to successfully conquer the hearts of Vietnamese customers.

Great opportunities for fast food

More than 60 per cent of the population are under the age of 35 and seek rich experiences in the fastest-growing economy in the region and the country is becoming a magnet for fast food brands. &ldquoVietnamese consumers are demanding a variety of modern dining styles, which open up opportunities for foreign brands to offer a wide range of options,&rdquo a representative from a business in the fast food field said.

Urbanization and household changes are affecting consumers&rsquo buying decisions in the fast-paced consumer segment, according to market researchers Nielsen. This is also why figures from the Ministry of Industry and Trade (MoIT) show that more than 40 fast food brands in cakes, coffee, beverages, restaurants, and hot pots have been licensed in the last ten years.

As one of the giants, the McDonald&rsquos chain in the country has been recording growth of nearly 40 per cent each year and now has 17 restaurants after only four years in Vietnam. The locations selected for its expansion are strategically located in the central business districts (CBDs) of Ho Chi Minh City and Hanoi, where there are a large number of potential customers.

The reality, however, is not all rosy. A developing market like Vietnam presents many challenges to fast food chains. Brands such as KFC and Lotteria have seen slower growth, making increasing their market share and opening new outlets anything but straightforward.

&ldquoIn order to open a new store, McDonald&rsquos has to fully prepare for a year, from choosing the right location to training staff and preparing logistics to meet standards,&rdquo a company representative said. &ldquoAnd McDonald&rsquos is still eager to expand its coverage to many other locations, not only Hanoi and Ho Chi Minh City.&rdquo

In addition, the localization of supply and menus to provide dishes with appropriate taste and quality is also a challenge. The process of expanding chains to other areas besides large cities such as Ho Chi Minh City and Hanoi requires fast food chains strictly control the quality of products, services and staff training, which is a major challenge for any fast food chain.

Giant&rsquos new strategies

Market challenges have not dampened the plans of fast food brands to penetrate further and expand their market share in Vietnam. In order to conquer the market, a fast food brand needs to understand the needs of customers and, especially, the country&rsquos culinary culture. They need to strike a balance between serving traditional items and modifying and offering the right menu for local tastes.

For example, McDonald&rsquos fast food restaurants have recently come up with a great selection of Vietnamese fries alongside the famous Big Mac and Cheeseburger. Its new crispy fried chicken has been well received by customers and is considered by many to be one of the best types of fried chicken available.

Creation is a must for fast food chains to reach the top of a fast-moving market like Vietnam. Young consumers in the country, including Generation Z, are willing to try new and exciting things even when they are familiar with a brand, according to Nielsen. Loyalty towards a brand among this young generation is quite low, however, due to their curiosity and improvisation. But this also presents a great opportunity for brands to offer exciting, innovative and unique experiences, products and services.

It is still too early to confirm the success of McDonald&rsquos in Vietnam, but it can be seen that the fast food chain still has strong belief in the prospects of the market with 95 million people. &ldquoWe will continue to expand the system and develop our restaurant network on the general principle of taking prudent steps, with quality products and services placed at the top,&rdquo the company representative said. &ldquoWe are always listening to the needs of customers, to offer products with the right taste and price as well as to always improve the quality of service, apply new technology, and provide the best experience possible to customers.&rdquo


McDonald's has released its sausage and egg McMuffin recipe so people can recreate it at home

McDonald's has released a recipe card giving step-by-step instructions on how to create your own sausage and egg McMuffin at home.

The fast-food chain's breakfast sandwich is one of its best-selling items on the menu, especially since the company tweaked the recipe by switching from margarine to butter.

While fans have been unable to indulge in their breakfast guilty pleasure with many McDonald's restaurants currently closed or offering takeaway only, they can now whip up their own version at home to satisfy the cravings.

People have recently begun sharing the results of their own sausage and egg McMuffins attempts on Twitter.

One user tweeted: "Received my @ReelRapid prompt but first. Breakfast. Yes, I made my own McMuffin because I miss McDonald's that much."

McDonald's has responded to the call and brought together all five ingredients and the cooking method in an easy-to-follow recipe card so it can be enjoyed in the comfort of your own home.

Ingredients

- Toast the English muffin until golden brown.

- Season with a pinch of salt and pepper then shape into balls. Flatten into patty shapes and cook under a pre-heated grill for six to seven minutes on each side (or as per instructions on packaging).

- Brush the inside of a metal ring with a little oil and place in a small frying pan. Pour in just enough water to cover the base then bring to the boil. Crack the eggs into the rings, cover the pan and cook for two-three minutes.

- Assemble your McMuffin by layering the patty and egg on top of a slice of cheese.

- To make a hash brown, grate the potato into a bowl. Mix in an egg, then season with salt and pepper. Heat a glug of oil in a pan then add spoonfuls of the mix. Flatten and cook until golden brown on both sides.


McDonald’s Supersizes its Business in Vietnam

HCMC – According to reports out this week, the newly opened McDonald’s in Ho Chi Minh City (HCMC) has already served over 400,000 hungry customers.

The new location served its first burger on February 8th of this year. On its very first day open for business the restaurant served over 22,500 customers within 24 hours.

RELATED: Dezan Shira & Associates’ Pre-Investment, Market Entry Strategy Advisory Services

McDonald’s is not the first western brand to enter Vietnam, Burger King, Starbucks, KFC and various other brands are already here. However, the success of McDonald’s new restaurant dwarfs the openings of all the other western brands. It would seem that the golden arches allure knows no borders.

McDonald’s is following its franchise model as it expands into Vietnam. The owner of this first franchise in HCMC is the Prime Minister’s son-in-law, Henry Nguyen. Interestingly, Mr. Nguyen even worked in a McDonald’s when he was young and living in the United States.

Mr. Nguyen expressed his delight at the explosive growth of his business which has surpassed even the sky-high expectations he previously held.

Unlike in many western countries where McDonald’s has lost some of its luster, the new restaurant in HCMC is viewed by many as being an exciting and superior place to eat. McDonald’s is also an aspirational symbol for many Vietnamese – the average wage in Vietnam is around US$150 a month, whereas the cost of a Big Mac in HCMC is US$2.82.

The amazing success of McDonald’s in Vietnam also points to the growing strength of the country’s consumer class and the ever-increasing amount of young people entering the workforce.

Besides its growing consumer class, one of the key attractions of Vietnam for western brands has been the Vietnamese government’s efforts to loosen investment restrictions.

Buoyed in part by businesses like McDonald’s, HCMC has seen strong growth during 2014. Over the previous two months, HCMC has seen its sales and services revenue amount to slightly over US$4.9 billion (VND 103 trillion). This is an 11.8 percent increase over the same period last year.

Alongside this trend, the city has seen a year-on-year (Y/Y) increase of 14.7 percent in its level of exports, earning around US$1.8 billion during the month of February.

Consumer confidence continues to climb steadily throughout the country.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam in addition to alliances in Indonesia, Malaysia, Philippines and Thailand as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email [email protected], visit www.dezshira.com, or download our brochure.

You can stay up to date with the latest business and investment trends across Vietnam by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

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First McDonald’s officially opens in Vietnam here’s what you need to know

McDonald’s has just announced that it is adding a Vietnam restaurant this weekend, marking its entry to a new Southeast Asia country for the first time in two decades.

The new outlet, located at 2-6 bis Dien Biên Phu, Phuong Da Kao, Quan 1 Ho Chi Minh City, started its service today. The 1300 square meter flagship outlet has a seating capacity of 350 seats. The outlet is opened 24-7.

McDonald’s Vietnam entered the market through a local partnership with Good Day Hospitality, which is owned by Henry Nguyen, son-in-law of Prime Minister Nguyen Tan Dung. Henry said that expanding the chain to at least 100 branches within a decade was an achievable, if tough, goal.

In a statement, Liam Jeory, a McDonald’s vice president for corporate relations, wrote: “The contract with Henry Nguyen as developmental licensee is the result of a rigorous selection process that began years ago. Nguyen brings a strong passion for the brand that he developed while working as a part-time crew member for McDonald’s as a young student in the United States.”

The first flagship outlet of McDonald’s Vietnam will feature a drive thru where customers can order McDonald’s meal without leaving their cars. There is also an indoor playground where the company hopes to attract families to the outlet. To ensure service quality, all the employees have to go through a training period of 3 to 9 weeks to familiarize themselves with the operating process. In order to prepare for the arrival of McDonald’s in Vietnam, the first batch of employees were sent overseas to undergo trainings.

There are about 400 McDonald’s in the Philippines, 260 in Malaysia, 195 in Thailand, and 150 in Indonesia. Vietnam is the first Southeast Asian market since the company opened its restaurant in Brunei in 1992.

On average, per meal at McDonald’s Vietnam costs about 65,000 dong ($3), almost twice the price of a normal bowl of pho, the noodle which Vietnam is popular with. While McDonald’s may be tasty, would the price be too expensive for normal Vietnamese?

You know what would be interesting too? We’d love to see what local menu customizations McDonald’s Vietnam come up with. McPho?


McDonald’s in Vietnam: Let the burger war begin

Vietnam may be closer to biting into its first Big Mac than earlier expected, but when McDonald’s finally opens its first outlet it’ll find itself amid a crowded food court.

McDonald’s highly publicised entrance into Vietnam – originally thought to arrive by 2014 – could come before that date, with two outlets opening in Ho Chi Minh City, Vietnamnet, an online news portal, quoted an unnamed source as saying.

McDonald’s has 33,500 franchised agents in 119 countries around the globe, but has avoided the Vietnamese market up until now. Economists typically view the entrance of the multinational fast food chain into emerging markets as a cachet that heralds the flow of other Western brands, but McDonald’s is no frontrunner this time around.

Vietnam’s fast food market is currently dominated by KFC, Pizza Hut, South Korea’s Lotteria and the Filipino chain Jollibee, as well as Burger King, which has begun to branch out.

While McDonald’s is hashing out terms to get the right potato, it is very likely that Burger King will expand following a six-month pilot programme at the Tan Son Nhat airport in Ho Chi Minh City and Noi Bai in Hanoi.

Burger King reportedly plans to now open up outlets in 11 districts in Ho Chi Minh City, six in Hanoi and some shops in the central area of Da Nang City and Hoi An ancient town.

The key ingredient that would bring McDonald’s into the burger fray in 2013 is if a local partner is hastily identified to supply fresh materials.

Another issue is that Vietnam’s import tariffs for potatoes are high, while local potatoes are exposed to an unacceptable amount of humidity that would change the taste of McDonald’s signature French fries.

Faced with the decision of selling fries with an offbeat flavour, McDonald’s may just prefer to stay out a bit longer.

Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

Vietnam may be closer to biting into its first Big Mac than earlier expected, but when McDonald’s finally opens its first outlet it’ll find itself amid a crowded food court. McDonald’s highly publicised entrance into Vietnam - originally thought to arrive by 2014 - could come before that date, with two outlets opening in Ho Chi Minh City, Vietnamnet, an online news portal, quoted an unnamed source as saying. McDonald’s has 33,500 franchised agents in 119 countries around the globe, but has avoided the Vietnamese market up until now. Economists typically view the entrance of the multinational fast food chain.

Vietnam may be closer to biting into its first Big Mac than earlier expected, but when McDonald’s finally opens its first outlet it’ll find itself amid a crowded food court.

McDonald’s highly publicised entrance into Vietnam – originally thought to arrive by 2014 – could come before that date, with two outlets opening in Ho Chi Minh City, Vietnamnet, an online news portal, quoted an unnamed source as saying.

McDonald’s has 33,500 franchised agents in 119 countries around the globe, but has avoided the Vietnamese market up until now. Economists typically view the entrance of the multinational fast food chain into emerging markets as a cachet that heralds the flow of other Western brands, but McDonald’s is no frontrunner this time around.

Vietnam’s fast food market is currently dominated by KFC, Pizza Hut, South Korea’s Lotteria and the Filipino chain Jollibee, as well as Burger King, which has begun to branch out.

While McDonald’s is hashing out terms to get the right potato, it is very likely that Burger King will expand following a six-month pilot programme at the Tan Son Nhat airport in Ho Chi Minh City and Noi Bai in Hanoi.

Burger King reportedly plans to now open up outlets in 11 districts in Ho Chi Minh City, six in Hanoi and some shops in the central area of Da Nang City and Hoi An ancient town.

The key ingredient that would bring McDonald’s into the burger fray in 2013 is if a local partner is hastily identified to supply fresh materials.

Another issue is that Vietnam’s import tariffs for potatoes are high, while local potatoes are exposed to an unacceptable amount of humidity that would change the taste of McDonald’s signature French fries.

Faced with the decision of selling fries with an offbeat flavour, McDonald’s may just prefer to stay out a bit longer.

Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.


McDonald’s Opens The First Restaurant In Hanoi

Last Saturday, McDonald’s opens its very first restaurant just near by Hoan Kiem Lake, the center and historic place of Hanoi.

Long lines of customers, mostly are Vietnamese waiting to try the Big Macs and Chicken McNuggets at glober burger first restaurant in the capital’s Old Quarter, where famous with its street food like pho or banh my for foreign visitors.

Since the first time McDonald’s camo to Vietnam in 2014, 16 brands have open but all in Ho Chi Minh City. This newest brand is the very first McDonald’s restaurant outside of southern of Vietnam.

Globen fast food company have a warm and sweet weekend open with thousand of hungry customers come to try famous bugger for the first time. Many young Vietnamese who are accustomed to American culture are eager to experience McDonald’s fast food. Some older people, in other hand feel happy because a big American brand of set foot to the heart of the country shows how far U.S.-Vietnam relations have come.

Some curious tourists stopped to see what all the fuss was about, perplexed that a brand ubiquitous in the West would draw so much attention.

McDonald’s is not the first international F&B company join Vietnamese market. Vietnam has open it door to grow economic in recent years and welcome all investments around the world. Some of famous brand also appear in Vietnam for years are KFC, Bugger King, Domino Pizza and Starbucks.

Average income in Vietnam had grown double from last decade to about $2,200 today, and half of population of 93 millions is under 30-years are young people who want to experience new and familiar with Western cultures. This is the main reason to make the fast food industry in Vietnam has seen double-digit growth annually for the past five years, and the country has the highest 2017 growth in Asia-Pacific for fast food chains, according to market research firm Euromonitor International.

Cost for a meal at McDonald’s is three time higher than at local places, but young customers seem to be not really care about this.

“Young people like to hang out in fast food restaurants as they are seen as a cool and nice place … and these customers also like the taste of the food,” Euromonitor analyst Samuel Huynh told AFP.


Located at No 2 Trần Hưng Đạo - Bến Thành Ward - District 1, Ho Chi Minh City, McDonald’s Ben Thanh uses conveyor system to transport food. The conveyor running from the kitchen on the 3rd floor to the counter on the 1st floor is expected to provide food within 15 seconds. Vietnam is the first country that McDonald’s opens this conveyor system for customers to take a firsthand look.

In addition to the new conveyor system, McDonald’s Ben Thanh also possesses an order counter named “To Go” which will help busy people to buy food and drinks in an easy way without going into the restaurant. The menu of McDonald’s Ben Thanh will fully have popular dishes of McDonald’s worldwide such as Big Mac and Cheeseburger. Of all ingredients to make a complete product, vegetables and milks are provided by domestic suppliers. The remaining ingredients are imported from the global supply chain of McDonald’s.

Mr. Nguyen Huy Thinh, CEO of McDonald’s Vietnam, said that McDonald’s was planning to open at least one more restaurant from now until the end of 2014. The specific location, however, could not be announced. Now McDonald’s still focuses on Ho Chi Minh City market and preparing human resource for expanding market when conditions are favorable. Developing McDonald’s chain is an important strategy that requires not only a vacant ground but also a foresight and long-term plan. Before opening a new restaurant, McDonald’s always conducts a survey from 6 to 12 months earlier to research the need of customers and assess the feasibility of the new location. The cost of infrastructure and space is a part of the total investment capital because the enterprise has to research the market, complete the infrastructure and train human resource.

Mr. Don Thompson, the President and CEO of McDonald’s Corporation said that he was deliriously happy to bring experiences on food processing, service quality and outstanding design to Vietnam. McDonald’s would focus on the customers’ needs and try its best to meet their expectation. In developed countries, McDonald’s restaurants have announced the nutrient composition of the diet. McDonald’s Vietnam is promoting essential procedures for declaring this information in Vietnam market. Vietnam is among 65 markets of McDonald’s franchises in the world. This franchise model has been used for over 30 years by McDonald’s to develop its trademark.


Watch the video: I Try McDonalds Vietnam Only Menu (October 2021).