When I was young, I lived on fast food. Hamburgers, tacos and pizza were the staples of my diet, sprinkled with the occasional bucket of fried chicken or ice cream sundae. One of the earliest memories of my childhood was the magnificence of my first visit to the golden arches leading into the home of Ronald McDonald. The lights, the bright colors, the characters. For most kids in my area, it was the only chance to see a cartoon world come to life. The fact that you could get food there was just a nice bonus.
Over the years, the number of fast food restaurants around the world has grown at a stunning pace. The total number of quick service dining locations is now over 160,000 in the United States alone. The only thing that grew more quickly was my obsession with eating every bit of it.
All of that changed once I arrived in Vietnam. I had heard rumors of a mythical land where there were no Burger Kings or Taco Bells. I didn’t believe it. Surely, stories like that must have been fairy tales used to scare small children who don’t do their chores.
As I discovered, part of the undeniable charm of HCMC is that it has long stood as a fortress against the onslaught of chain restaurants. Chains account for over 50% of eating establishments in the United States but less than 1% in Vietnam, which is remarkable for a country with such a large urban population.
Even now, the biggest restaurant chains in Vietnam offer local dishes and healthier food than you’ll find in other countries. All but a few of the biggest international brands have failed to make in-roads into the city. But more are coming and they’re being carried atop a tsunami of frying oil.
For those who haven’t lived their lives with it, you probably wonder why fast food is so popular. What does it offer that Vietnam doesn’t already have?
It’s certainly not that it tastes good. Food from international chains is often frozen and shipped great distances. How can that possibly compare with the freshness you get from eating the chicken you watched grow up while drinking your morning coffee?
What about cost? The popularity of fast food in the western world is also due to the low cost to feed a family. In Vietnam, though, fast food will likely be more expensive because of the food cost and licensing fees involved in working with the major companies.
So, what can the most popular international chains offer and can they succeed? And is it a good thing if they do?
As a business, owning a fast food unit can be tremendously profitable. Even though there are expenses involved in franchising and licensing, the vast quantity of meals served creates exceptional revenue potential. An average restaurant in the United States can take in revenues of over US$1 million in a year.
But it’s not just the businesses that benefit.
The city and people benefit, too, because sight of a Starbucks or a McDonald’s is a symbol of a developed nation with a strong economy. It really shouldn’t be a symbol, but it’s one that people from other countries use as a measuring stick, even if it’s not a conscious or correct thought.
One of Vietnam’s key economic growth levers is the tourism industry. With the culture, cuisine and natural beauty of Vietnam, it’s an exceptional place to visit. Despite growing at a strong pace, the industry still lags well behind other countries in the region.
The difference for Vietnam is that it attracts “cultural tourists” who want to appreciate the historic sites and explore the gorgeous scenery in places like Sapa, Dalat or Ha Long Bay.
The reality is that cultural immersion doesn’t fit with the desire of most tourists, particularly those from the Western world. The average leisure traveler wants to explore new worlds, but still be able to escape them. They want a comfortable bus, a fork with their dinner and the ability to retreat to a style of food that wraps them in home. Fast food may not be good, but it’s very consistent.
The success of the tourism business in Thailand is due, in part, to providing a flavor of home to the tourists. International fast food chains are plentiful in cities like Bangkok. This goes a long way to providing a level of comfort to tourists, even though the nation maintains its culture, heritage and plenty of traditional food options. Bangkok residents may not eat a lot of it, but they welcome the business it brings.
The comfort factor extends to business travelers. Most international executives won’t ever eat the fast food they see around town, but knowing there’s a familiar burger place around the corner reassures them that they are in a place that operates by the same rules as their home. There’s no need to admit a lack of understanding of Saigon because if there’s a Pizza Hut then surely it’s a good place to open up a new branch of their investment firm.
Vietnamese food is some of the finest in the world. I have tried things I never thought I would put in my mouth, and enjoyed every bite. As an expat, though, I still get a thrill in seeing a “coming soon” sign for a Burger King or another Domino’s Pizza. You could judge me for that, but now when I go for a quick burger I order a single and not the Triple Double Deluxe Bacon Cheeseburger, so I like to think I’ve come a long way since arriving in HCMC.
Bring on the fast food. Frequent those that honor the heritage, flavors and traditions of Vietnam. For the rest? I suggest that they be welcomed with open arms, but a closed mouth.
* Joel Ward is a marketing executive in the area of tourism and resort development. Originally from California in the United States, he has worked across the world in locations like Singapore, Bangkok, Dubai and Vietnam.
Print
