Food & Beverage

Trends in Vietnam
DECISION LAB
Content

1. F&B market overview

• The challenge for the sector

• Vietnamese consumer behavior to eating out

• Potentiality for the sector

• F&B brand performance in current customers &

recommendation

2. Vietnamese consumer behavior when eating out

• Why do people choose to eat out?

• Which price do they find reasonable for a meal?

• Which restaurant types do they visit when they eat out?

2
F&B market
overview

• The challenge for the sector

• Vietnamese consumer behavior to eating out
• Potentiality for the sector
• F&B brand performance in Current customers &
Recommendation

10
 Restaurants & cafes are currently not a prioritised consumption area
for consumers …
Only 15% of consumers reported to have spent more on Restaurants & cafes.

Consumption areas with increased spending

Average
29%
28%
26% 25% 25%
22% 22%
21% 20% 20%
17% 17% 16% 16% 15% 15% 15% 14%
11% 11% 11% 11%

ce
o du son al ca
re i es ion tics ink s n ics nce ld ca
re en t ods men
ts
lian c
es M ilk ives g
ellin n d ca fe
s es
er ag B aby fo
od ca re a tion ar y r ed m ilk
h pr U tlit F ash Co sme Sof t dr Elect ro F in a inm dfo qu ip ite ap p mo t Tr av bev ch ild
F re s Pe r nd o u seho Ent erta c kag e a l e Au to a ntsa l i c an d St
Pow
de
re a H Pa
med
ic Wh ta ur oh o om
Sk in ca a nd Re s Al c M
ug s
Dr

Q: Compared to the previous month, which of the following categories have you spend MORE on in the past 1 month? n = 3013

Source: Decision Lab ICS from March to May 2023 11

 … while consumers are moving towards neccessities

Consumption areas with increased spending

Average
29%
28%
26% 25% 25%
22% 22%
21% 20% 20%
17% 17% 16% 16% 15% 15% 15% 14%
11% 11% 11% 11%

ce
o du son al ca
re i es ion tics ink s n ics nce ld ca
re en t ods men
ts
lian c
es M ilk ives g
ellin n d ca fe
s es
er ag B aby fo
od ca re a tion ar y r ed m ilk
h pr U tlit F ash Co sme Sof t dr Elect ro F in a inm dfo qu ip ite ap p mo t Tr av bev ch ild
F re s Pe r nd o u seho Ent erta c kag e a l e Au to a ntsa l i c an d St
Pow
de
re a H Pa
med
ic Wh ta ur oh o om
Sk in ca a nd Re s Al c M
ug s
Dr

Q: Compared to the previous month, which of the following categories have you spend MORE on in the past 1 month? n = 3013

Source: Decision Lab ICS from March to May 2023 12

Vietnamese
consumer behavior
when eating out

• Why do people choose to eat out?

• Which price do they find reasonable for a meal?
• Which restaurant types do they visit when they
eat out?

13
 Free time activities
Restaurants/
cafes and
Cinema 43% shopping malls
Restaurants and cafes 32% are the top 5
Parks and gardens 32% most visited
Historical sites and attractions 26% places in
Shopping malls/clothing stores 26% consumers’
Exhibitions 23%
free time.
Fairs or the circus 23% Having mall placements may
Art galleries 22%
help restaurants & cafes
increase their chances of
Karaoke 21% being visited.

Museums 20%

Q: Which, if any, of the following places or events do you like to visit in your free time? Please select all that apply. n = 7243

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 15

 Having shops in Restaurant types for eating out
supermarkets/
malls may help Café, Coffee & Tea, Juice shops 38%
restaurants &
cafes increase Vietnamese food restaurants 37%

consumer Local food shops 34%

visits. Fast food restaurants 24%

As these shops are the top 5 Food court in supermarket/mall 23%

visited/ordered from
restaurant type of consumers Pizza/Pasta restaurants 21%
in the P6M.
Convenience stores 20%

Specialized restaurants (e.g. French, Japanese

17%
food)

Q: Which of the following types of outlet did you visit/order from in the past 6 months n = 6259

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 16

 While fast food and convenience stores are attractive to the youngest
group (18-24 y/o) …

Restaurant types for eating out by Age groups

▲
▼ 39%38% 38%38%38% 37%
37%
36% 35%35%
▲ ▼
30%
29% 29%
▲ ▲
23%23% 24%24% ▼ 23%
23% ▼
▼ ▼
▲ 21%
20% 21% 21% 21%
19% 19% ▼
▼ ▼
▼ 17% 17%
▼ 16% 16%
14% 15%

Specialized restaurants Convenience stores Pizza/Pasta restaurants Food court in Fast food restaurants Local food shops Vietnamese food Café, Coffee & Tea, Juice
(e.g. French, Japanese supermarket /mall restaurants shops
food)

18 - 24 (n=1766) 25 - 34 (n=2703) 35 - 44 (n=1288) 45+ (n=709)

Q: Which of the following types of outlet did you visit/order from in the past 6 months

▲ = Significant higher than Total at 95% confidence

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 17
▼ = Significant lower than Total at 95% confidence17
 … local food and pizza/pasta restaurants are favored by the 25-34 y/o.

Restaurant types for eating out by Age groups

▲
▼ 39%38% 38%38%38% 37%
37%
36% 35%35%
▲ ▼
30%
29% 29%
▲
▲
23%23% ▼ ▼ 24%24% 23%
23% ▼
▼
▲ 21%
20% 21% 21% 21%
19% ▼ ▼ 19% ▼
▼ 17% 17%
▼ 16% 16%
14% 15%

Specialized restaurants Convenience stores Pizza/Pasta restaurants Food court in Fast food restaurants Local food shops Vietnamese food Café, Coffee & Tea, Juice
(e.g. French, Japanese supermarket /mall restaurants shops
food)

18 - 24 (n=1766) 25 - 34 (n=2703) 35 - 44 (n=1288) 45+ (n=709)

Q: Which of the following types of outlet did you visit/order from in the past 6 months

▲ = Significant higher than Total at 95% confidence

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 18
▼ = Significant lower than Total at 95% confidence18
 People living in HCMC are more likely to eat out than people
living in other provinces.

Restaurant types for eating out by Location

▲
▲
▲ 52%
49% ▲ ▲ 50% ▲
47% 46% 46%

▲ 39%
▲ ▲ 37%
▲
34% 35% ▼
▲ ▲ ▲ 33% 33% ▼
31% ▲ 30%30% 30% 31% 31%
▼
▲ 28%
▲
▼ ▼ 26%
23% 22% ▼ ▼
▼ ▼ 21% ▼ 21%
▼ 19% 18% 18%
▼ 17%
16% 15% 16%
14%

Specialized restaurants Convenience stores Pizza/Pasta restaurants Food court in Fast food restaurants Local food shops Vietnamese food Café, Coffee & Tea, Juice
(e.g. French, Japanese supermarket /mall restaurants shops
food)
HN (n=1538) HCM (n=1923) 4 key cities (n=617) Others (n=2387)

Q: Which of the following types of outlet did you visit/order from in the past 6 months

▲ = Significant higher than Total at 95% confidence

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 ▼ = Significant lower than Total at 95% confidence 19
Consumers eat Reasons for eating out
out mainly to
socialize with To meet up with friends 35%
friends/ family
and enjoy good To enjoy good food/drink 34%

food/ drink. To save time from cooking 30%

To have a snack 23%

To have family gathering 23%

To enjoy the atmosphere at the store/restaurant 22%

To celebrate/have a party 19%

Q: Which of the following, if any, was the reason why you ate out within the last 1 month? n = 6254

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 20

 And they would find it reasonable to pay approximately 330,000 VNĐ
for a fancy meal, which is 6 times higher than a normal one.

NORMAL MEAL FANCY MEAL

AVERAGE PRICE AVERAGE PRICE

56,000 VND 331,000 VND

12% 40% 22% 11% 14% 21% 16% 41% 13% 4%5%

Under 20k 20-50k 50-80k 80-100k >100k Under 100k 100-200k 200-500k 500-800k 800-1tr >1tr

Q: In your opinion, how much is the price for a normal eating- Q: In your opinion, how much is the price for a fancy eating-
n = 6030 out meal (for 1 person) do you consider reasonable? n = 6008
out meal (for 1 person) do you consider reasonable?

Source: YouGov Profiles Dataset 52 weeks till 4/6//2023 21

 Potentials for the FnB sector

22
Source: Decision Lab – ICS May 2023
n = 3013
Profiles of people with increased spending in F&B | Monthly Household Income
High income
consumers are
SEC D (VND 9,999,999 and under)
18% more likely to
38%
increase their
15%
spending on
SEC C (VND 10,000,000 - 14,999,999)
15% F&B than other
groups…
23%▲
SEC B (VND 15,000,000 - 22,499,000)
19%

44%▲
SEC A (VND 22,500,000 or more)
28%

Increased spending Onl Rep

Q: If you add up the income from all sources, what is your average NET household income per month? n = 447

23
… same for Profiles of people with increased spending in F&B | Location
people living in
Hanoi and 24%▲
HCMC. Hanoi
13%

34%▲
Ho Chi Minh City
13%

4 key cities (Danang, Nha Trang, Can Tho, Hai 10%

Phong) 11%

31%
Others
62%

Increased Spending Onl Rep

Q: Where do you currently live? n = 447

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 Offering
Reasons for reducing eating out spending
attractive
Reduce eating out spending for other spending 20%
promotions/
discounts is a
No promotion / discount 18%
key tactic to
Reduced income 13% keep customers
Eating out is not good for my health 9% coming to the
Increase cost of delivery 9%
restaurants/
cafes.
Increased cost of eating out 8%

Concerns about food safety & sanitary 7% As difficulty in their personal

Restaurants / Food stores are far away from finance conditions and lack
6% of promotions are key
where I live
reasons consumers reduced
Increased cost of traveling 4% their eating out spending.

Q: Which factors influence you to reduce spending on eating out? n = 2226

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 25

 Reasons for increasing eating out spending
Focusing on
taste and
Eating out tastes better 23% offering
I don't have time to cook (e.g. work is too busy) 23%
convenience
Eating out is cheaper 22%
are other
Increased need for social interaction (e.g. meeting
triggers to
increase
18%
friends, business partners, etc)

Eating out is better for my health 15%

consumer
Increased income 12% spending.
Promotions / discounts 10%

Free delivery 10%

Because taste, convenience
and affordability are the top
Convenient restaurant/food store locations (e.g.
8%
reasons for consumers to
near to where i live) increase their eating out
spending.
Q: Which factors influence you to increase spending on eating out? n = 3151

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 26

 Top food delivery apps—Penetration rates
Partnering with
food delivery
apps can add
48% touchpoints
42% with consumers,
offering higher
convenience
when ordering.
24% 23%
21%

10%
Grab’s usage maintained in
Q1 2023, while slight
decreases were observed
Grab Food ShopeeFood GoFood Brand websites Baemin Loship
across platforms

Q1 2023 Q4 2022 Q3 2022 Q2 2022

Q: Which food delivery apps do you use? Choose all that apply. n(Q1’23)=1741

Source: YouGov Profiles Dataset 52 weeks till 4/6/2023 27

 How are F&B brands performing?
Decision Lab F&B Brand Ranking 2023

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Source: Decision Lab – ICS May 2023
n = 3013
KFC and Lotteria remain the top Fast-food choices.

QSR Rankings (Current customers) QSR Rankings (Recommendation)

Vs May’23 May’22 Vs May’23 May’22

May’23 Rank Brand name May’23 Rank Brand name
May’22 Score Score May’22 Score Score

1 = KFC 26.1 24 1 = KFC 30.7 28.2

2 = Lotteria 16.5 16.2 2 = Lotteria 23 21

3 ▲ 1 Jolibee 14.6 8.7 3 = McDonald’s 19.3 13.5

4 ▲ 1 McDonald's 9.9 8.6 4 ▲ 1 Jolibee 18.5 10.5

5 ▼ 2 Pizza Hut 8.5 9.4 5 ▼ 1 Pizza Hut 16.7 13.5

n(May’23)=544 n(May’23)=544
Source: YouGov BrandIndex n(May’22)=555 Source: YouGov BrandIndex n(May’22)=555

Green = Significant increase at 95% confidence 29

Red= Significant decrease at 95% confidence
Pizza 4P’s maintains its leading position
in the casual dining category.

Casual dining Rankings (Current customers) Casual dining Rankings (Recommendation)

Vs May’23 May’22 Vs May’23 May’22

May’23 Rank Brand name May’23 Rank Brand name
May’22 Score Score May’22 Score Score

1 = Pizza 4P's 3.3 3.7 1 = Pizza 4P's 7.4 6.7

2 ▲ 1 Al Fresco's 1.8 1.2 2 ▲ 1 Al Fresco's 3.2 1.7

Pepperonis ▼ 1 Pepperonis
3 ▼ 1 1.2 2.3 3 2.7 2.3
Pizza & Café Pizza & Café

n(May’23)=544 n(May’23)=544
Source: YouGov BrandIndex n(May’22)=555 Source: YouGov BrandIndex n(May’22)=555

Green = Significant increase at 95% confidence 30

Red= Significant decrease at 95% confidence
Highlands Coffee leads the drink chains category, with
Trung Nguyen following up closely in Recommend score.

Coffee chains Rankings (Current customers) Coffee Rankings (Recommendation)

Vs May’23 May’22 Vs May’23 May’22

May’23 Rank Brand name May’23 Rank Brand name
May’22 Score Score May’22 Score Score

Highlands Highlands
1 = 24.1 21.1 1 = 27.3 22.5
Coffee Coffee

Phuc Long Trung Nguyên

2 ▲ 1 15.5 13.3 2 ▲ 1 25.3 19.2
Coffee and Tea Legend

Trung Nguyên ▼ 1 Phuc Long

3 ▼ 1 14.1 12 3 21.6 19.4
Legend Coffee and Tea

n(May’23)=544 n(May’23)=544
Source: YouGov BrandIndex n(May’22)=555 Source: YouGov BrandIndex n(May’22)=555

Green = Significant increase at 95% confidence 31

Red= Significant decrease at 95% confidence
Key highlights
Vietnam’s economy is going through hardships, which also reflects in consumers tendency to save more.
The F&B sector is currently not a prioritized consumption area for consumers.
However, restaurants & cafes can still find opportunities in:

1. 2. 3.
Targeting high-income consumers Offering attractive promotions/ Creating more touchpoints with
and people living in Hanoi and discounts and focusing on the customers besides dine-in through
HCMC. tastiness of their food/ drink to keep takeaways, deliveries, and food
customers spending more. delivery apps.
Having shops in supermarkets/ malls
to increase consumer visits.

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