Select company:

After researching the market at potential locations. We have decided to invest in opening
a beverage store in the coastal area of Hoai Nhon town, Binh Dinh province called Adore.
Binh Dinh is a province in the South-Central Coast of Vietnam. With 134 kilometers of
coastline, Binh Dinh is home to numerous well-known, stunning beaches that span
hundreds of hectares and have fine white sand and crystal-clear, blue seawater. excellent
for the growth of beach resort merchandise. This place has a favorable geographical
location, climate, and transportation, so it attracts more and more tourists to visit. This is
considered a good condition for businesses to have strong growth potential when
operating in this market F&B plays a significant role and has a lot of development
potential in Vietnam. As to the data published earlier this year by Euromonitor, Vietnam's
food and beverage (F&B) market value is anticipated to rise by 18% in 2023 over 2022,
with a revenue milestone of approximately VND 720,300 billion. The above figure shows
that this industry is on the path to accelerating recovery after the Covid-19 pandemic,
which is a golden opportunity for F&B brands to develop. Therefore, opening a beverage
store in Binh Dinh not only meets the needs of dining and entertainment, creating an
attractive destination for tourists but also contributes to supporting job creation to
improve people's lives local people and the country's economy in general (Thu Hà, 2023).
• Funding sources:
One of the biggest banks in Vietnam is the Vietnam Joint Stock Commercial Bank for
Industry and Trade. A vast array of diversified financial goods and services, including
credit, savings, payment, investment, and insurance, are offered by VietinBank. In
summary, the bank offers medium- and long-term loans that are intended to assist SMEs
(small business owners) in implementing new projects and financing capital to grow their
operations, including factories, land, machinery, and equipment. Three years in a row,
from 2021 to 2023, worldwide organization The Asian Banker has voted VietinBank
"Best SME Bank in Vietnam" due to its exceptional ability to offer financial solutions for
small and medium-sized businesses. Interest From 12 to 60 months, the interest rate on
these loans is approximately 6.45%. This loan package also shows the bank's dedication
to helping companies overcome market obstacles by lowering financial strain, facilitating
access to capital at competitive rates, and emphasizing business acceleration
(L.Thanh, 2023)
.
• Credit policy:
A beverage store's credit policy entails defining guidelines and practices for handling
consumer credit transactions. To guarantee that firms maintain sustainable cash flows and
reduce financial risks, credit policies need to be transparent. Particularly in the
prosperous 4.0 revolution period, exceptional convenience attracts both buyers and
merchants. As a result, to accommodate modern needs, our business will accept all
domestic debit cards and credit cards.
• Financial assessment:
Financial reviews serve as the foundation for the owner-manager's decision-making
process, providing invaluable insights into a company's performance and financial health.
By consistently preparing and reviewing monthly financial reports to gain a clear
understanding of the business's financial position and be able to evaluate progress and
performance. Furthermore, by expanding analysis by comparing various financial
statistics with those of comparable companies, the owner-manager can gain a broader
perspective on the company's position. businesses in the industry. Ultimately the owner-
manager makes informed decisions, optimizing resource allocation and promoting the
company's long-term business success.

 Administrative Structure
Adore is a large beverage store, so right from the beginning, the number of employees
will be arranged in the store to be able to serve customers quickly and effectively.
Opening times of Adore are as follows:
- Monday to Friday: 9am – 10pm
- Saturday -Sunday: 9am –11pm
Thus, the base salary and salary costs will be.
Store manager (2 person) 168,000,000

8 staffs 336,000,000

Total salary and wage (in VND) 504,000,000

2.7 CONDITION OF RECORDS

The brand is offering a full-service package for franchising, including all the necessary
documents and licenses for store operations. Before transferring ownership, the current
owner has ensured that all documents such as business license, food hygiene and safety
license and franchise documents are issued and fully completed.

In addition to providing legal documents, this brand also assists in training employees for
the new branch. This training is not limited to skills needed for customer service but also
includes store operations and management procedures. This ensures that new employees
will be fully equipped with the knowledge and skills to operate effectively in the new
store environment. After completing the franchising process, the new branch will become
a completely independent legal entity. This means that stores in Can Tho do not need to
share information about customer lists or credit records into contracts with buyers. While
the brand will provide the necessary support and guidance, the store's data and
information management will be entirely at the discretion and responsibility of the
branch.
III Practical Insights and Recommendations

The above research shows that the F&B market in Vietnam is growing rapidly at a rate of
approximately 20%/year, this shows that consumer demand is increasing, and there are
more and more brands competing fiercely. listed on the market. And in a small segment
of F&B, we must mention famous Korean pastry chain brands with high recognition such
as Tous Les Jour, Paris Baguette, which are very popular with customers in Vietnam.
Therefore, when BreadTalk competes with these brands, it requires the brand to have
specific long-term development strategies.
Choosing the right brand is crucial when bringing a successful brand to a new market to
grow your company. With only 27 locations spread over 6 cities, the number of
BreadTalk pastry stores in Vietnam has not yet increased the chain's reach. This poses the
following two issues:

- The company's operations are not particularly noteworthy and generate significant
profits for franchise partners; also, the company lacks sufficient capital, making it
challenging for the company to grow its brand across a wide geographic area.

- Franchise costs and capital recovery take a lot of time. Because in the current
Vietnamese market, consumers still aim for traditional cakes with affordable and lower
prices than BreadTalk. Comparing the prices of rolled sponge cake products from
BreadTalk and ABC bakery - a domestic brand present in Can Tho, we found that
BreadTalk's selling price is about 25,000 VND higher than ABC Bakery. This will make
it difficult for BreadTalk to reach customers.

As a result, Can Tho's partners must consider the brand's payback period and capacity to
compete on pricing with rivals. It is crucial to entice customers to sample the product
when opening for the first time in a new market to make an impression and show them
the value of the brand in later usage significant. When venturing into new markets, the
allocation of resources towards social media marketing and high-quality products remains
paramount.
 Furthermore, the previous owner continued to be active in support functions related to
public relations, stores, machinery, equipment, and staff training during the brand's initial
franchising phase. But partners could not get the same level of support from the prior
owner beyond the franchise support period. As a result, we advise Can Tho partners to set
up a specialized franchise support staff to offer continuing assistance and direction to
franchisees and to carry out training initiatives to outfit them franchisee to acquire the
skills and know-how required to manage the company successfully.
Lastly, there will be formulations and ingredients that are not precisely the same amounts
as in the original brand, mistakes made during the manufacture of the product, and issues
that arise during the post-franchising operation. As a result, lower product quality and
deviations from the original product. Once they realize this, customers will progressively
stop buying the products. As a result, to keep improving, Can Tho's partners need to
consider the franchisor's feedback. Due to a clause in the franchise agreement that states
that the terms of the agreement will be broken if the franchisee damages the brand or
causes it to lose its reputation while the franchise is in operation. Therefore, surveying
and evaluating early customer feedback about the brand is very important to protect the
value and reputation of the brand with customers.
To summarize, the process of franchising involves several carefully considered criteria.
These include the brand that has been selected, the brand's financial performance in the
past, and the pre- and post-franchise assistance, all of which significantly contribute to
success in new markets. Based on the current state of BreadTalk and certain projections,
can offer valuable considerations and challenges for potential partners in Can Tho to
ponder.

L.Thanh. (2023). VietinBank tiếp tục giảm lãi suất cho vay, chỉ từ 5,9%/năm.
https://tuoitre.vn/vietinbank-tiep-tuc-giam-lai-suat-cho-vay-chi-tu-5-9-nam-
20231109193348472.htm
Thu Hà. (2023). Xu hướng phát triển bền vững trong ngành thực phẩm đồ uống.
https://vneconomy.vn/techconnect//xu-huong-phat-trien-ben-vung-trong-nganh-thuc-pham-do-
uong.htm