11:22 | 14/02/2016 Companies
Fast food chain Burger King has refuted local media reports of a potential exit from Vietnam after closing down three outlets in the country over the past year.
A Burger King store in Ho Chi Minh City. (Photo: YouTube)
U.S. fast food chain Burger King has closed two restaurants in Ho Chi Minh City as part of its plan to move them to other locations with more reasonable rents and stable contract terms, Managing Director of Burger King Vietnam (BKV) Nguyen Gia Thanh told the Dau Tu (Investment) newspaper.
The chain will expand its network in the city and in downtown Hanoi as well, Mr. Thanh added.
The Tri Thuc Tre (Young Intellectual) newswire late last month reported that BKV closed two stores in Ho Chi Minh City and one in Hanoi during 2015. The firm shut down another store in the central city of Da Nang in mid-2014.
Burger King, which entered Vietnam in 2012 under a franchising contract with Imexpan Pacific IPP), set an ambition of reaching 60 outlets in Vietnam in the 2012-2017 period. However, the number of its stores is just 16 currently in HCM City, the country’s busiest economic hub, Hanoi, Can Tho and Bien Hoa.
An industry insider said that Burger King’s initial “Taste is King” strategy did not suit local consumers’. Meanwhile, its direct rival, McDonald’s has succeeded with a youthful style.
In addition, Burger King has fallen behind the competition for prime locations with early birds such as KFC, Jolibee and Lotteria. The U.S. fast food chain sometimes has pay higher rents in HCMC City than its rivals./.