Title: Franchising in Vietnam's F&B Industry: Opportunities, Challenges, and Pathways to Sustainable Growth
Authors: Nhan Ha Thien , Ngan Nguyen Thi Thuy
Volume: 9
Issue: 10
Pages: 308-314
Publication Date: 2025/10/28
Abstract:
Urbanized cities and a growing new middle class in Vietnam have changed people's attitudes towards convenience and brand engagement. This change has birthed the F&B franchising industry in Vietnam. This study aims to examine the associated challenges while determining the concessions for positive sustainable growth that F&B franchising offers in Vietnam. Using Transaction Cost Economics, Resource-Based View, and Institutional Theory, the study claims that the integration of brand equity, operational capabilities, and franchise contracts-along with appropriate governance and institutions-drives the outcome of franchise performance. The study employs a mixed-method approach. Quantitative research data has been collected from 720 customers and 150 franchise holders from the F&B industry, which includes coffee chains, milk tea, QSRs, bakeries, dessert, and full-service dining. Insightful qualitative data has been collected from 35 in-depth analyses of franchise holders, managers, and policymakers. We have studied local and foreign case examples such as Highlands Coffee, Starbucks, and Pizza Hut. To find the determining factors of franchise performance, the PLS-SEM technique was utilized. Operational and regulatory shortage explanations have been confined using the thematic framework. The results showed that customer satisfaction and franchisee profitability are greatly improved by strong brand equity, standard operating systems, and organized training. However, the long-term viability of the franchise is tempered by exorbitant entry barriers, uneven service quality, legal ambiguity, and significant competition. Considering how easy it is to implement localized policies and utilize local contacts to aid the development of a franchising framework-which maintains legal resilience-is something we consider persuasive and adaptable. This helps to balance the workforce within the F&B franchising industry to support growing businesses and the economy of an integrating developing country by better aligning pragmatic practice with theoretical insights.