Running head: SHORTENED TITLE UP TO 50 CHARACTERS 1

Abstract

1.1 The awareness in healthy life

KFC is one of the biggest fast-food restaurants in the world which are also famous for their

fried chickens. Their fried chicken is famous for the pretty flavor breading, moisture meat,

and 11 special herbs.  However, the health quality of KFC’s products usually considers bad

for health as many other fast-food restaurants. It is laden with fats and calories that are

linked in many studies are reports to obesity, health risks, and other diseases. Face to this

weakness, according to “Nielson’s Consumer Report, 2019”. The health has become the

most important concern rather than “Stable life” in Quarter 1, 2019 (44% and 42%

respectively), which shows that the people may reduce the using of unhealthy food like Fast

food restaurants.

In addition, the growing of fitness industry also the part of awareness in healthy life, there

are 80 % of men and 73 percent of women, between age 18-39, are interested going to

gym, show that the new generation has a concern to their health and their body. Otherwise,

according to Nielson, most Vietnamese people believe that good health and strength are the

expressions of success and the increase of dirty food forces them to be aware of their

health. While most KFC products contain a lot of fats and sodium, it may not good nutrition

products for those people to keep their fitness bodies. Lotteries and KFC are the two fast-

food brands, which have really high bad ingredients for their health. KFC compo is around

800 calories with 34 fats and 1,700 mg sodium while Lotteria compo is nearly the same.

 
SHORTENED TITLE UP TO 50 CHARACTERS 2

1.2 The development of Vietnam’s street food - Dũng & Huyền

While “famous fast-food restaurants” from other countries like KFC, Lotteria has

decreased their growth rate, other Vietnam’s street food shows the superior in

understanding local customers. According to Decision La, young generation in

Vietnam spend usually 13.000 billion VND for street food, some brands like Ba Huan

or Tan Viet Sin have more than 1000 stores in the county, which serve low-medium

class people. Furthermore, While Lotteria and Jollibee are quite good at expanding the

distribution in Vietnam, they’re still lost. Only KFC has profit in Vietnam because

they have adapted to the Vietnamese taste. Rice chicken and Shrimp burger is a good

example, but their growth rate was slow down by the competition from local

restaurants.

. In other countries, fast-food means “fast in service”, so customers can get it right

away. However, Vietnamese food is the same thing, if you go to the street vendors,

you can buy a bowl of pho and banh mi also maybe even faster than McDonald’s or

KFC. The price of street food is really at rock-bottom prices compared to

McDonald’s, KFC, or Lotteria. Most Vietnamese Cuisine has many kinds vegetables

which also provide fibers and vitamins, it will healthier compared to fast food. For

instance, “banh mi” is more superior to Burger or fried chicken because it is not only

having vegetables and less oil than fast food products. The other factors affect the

development of local’s food are the motorbike culture. Motorbike riders can easily

pull over to the sidewalk to buy a banh mi or a pack of xoi from street vendors.
SHORTENED TITLE UP TO 50 CHARACTERS 3

Purchasing a burger from a fast-food chain will usually involve finding space and

going inside the store, it is will take longer for customers. Even, some brands have the

drive-thru system, but the time is still so long. Loterria has the first step in selling

their food on street to serve the breakfast than KFC.

2.1 KFC Price is quite high:

While in other countries, fast food is the symbol of low-middle class workers, their

customer segment in Vietnam are Medium-high class. The price of KFC in Vietnam

was assessed have a high price of around 80,000 – 100,000 VND per combo.

According to Buzzmetrics, high price is the second reason make customers unhappy

about KFC. Compare to the Lotteria or Jolibee. For example, the fried chicken combo

of KFC is about 80,000-100,000VND while Jolibe and Loteria are 70,000 and 50,000

VND respectively. Furthermore, KFC doesn’t have many promotions compare to

Lotteria, which are famous for their promotions.

The KFC’s price high may come from the increase of rental cost that increases

dramatically year by year, while most of the KFC stores placed in the golden place in

Vietnam, most of their costs come from operating activities. Furthermore, except the

chicken was supplied by Vietnam’s suppliers, other ingredients were exported from

KFC’s Head Quarter, so the expenses were increased by logistic activities. Vietnam
SHORTENED TITLE UP TO 50 CHARACTERS 4

suppliers still can not meet the requirement of KFC lead to the price of KFC usually

higher than other competitors.

KFC's high price will lower its competition to other alternative selections. Other

smaller brands or substitutes step into the market, Korean fried chickens brand like

Papa, Don chicken step into the market with the Asian taste is the new threats, their

price is not really high, but they have the fancy decoration rather than Western fast

food. Otherwise, fried chicken is also selling at CVS at a low price than KFC, the

company may lose customers from its.

Recomendations:

KFC should have some promotion and focus on R&D in new products with more

healthy selections. For example, KFC also has some healthy products with less oil

like grilled chicken or a bowl of teriyaki chicken.

To increase the presence of their products in the market, fast food brands may need

to locate more appropriate strategies to target on the real demands of local

consumers, such as the combination of diversified dishes and food safety, which

are still seen as a big issue at street vendors and food kiosks.

Reference:
SHORTENED TITLE UP TO 50 CHARACTERS 5

https://www.brandsvietnam.com/congdong/topic/19847-Suc-khoe-tro-thanh-moi-quan-tam-

hang-dau-cua-nguoi-tieu-dung-Viet-Nam-trong-quy-2-nam-2019

https://e.vnexpress.net/news/business/industries/fitness-industry-grows-as-vietnam-

becomes-body-conscious-3940603.html

https://e.vnexpress.net/news/perspectives/fast-food-and-its-invasion-of-vietnam-s-culinary-

paradise-3732059.html

https://baomoi.com/diem-loat-vu-be-boi-thuc-pham-gay-soc-cua-hang-do-an-

kfc/c/19744516.epi

http://cafef.vn/thi-truong-thuc-an-nhanh-doanh-nghiep-noi-vuot-mat-cac-ong-lon-ngoai-

20190609133053841.chn

https://www.vir.com.vn/not-lovin-it-the-fast-food-failure-63502.html
SHORTENED TITLE UP TO 50 CHARACTERS 6