Lotteria, a subsidiary of South Korea’s Lotte Group, will expand its investment in Vietnam through opening more 28 fast-food stores and building a new food material factory in Long Hau Industrial Park in the southern province of Long An.
|Source: Statista, April 2020. Chart: Phi Nhat|
A representative from Lotteria Vietnam confirmed this information with Hanoitimes and denied a recent report that it will close its fast-food chain in the country. He also said the report of the Koreatimes resulted from a misunderstanding.
According to the South Korean newspaper, the hamburger chains overseas are being shut down due to the Covid-19 pandemic. Lotteria Indonesia, which operates more than 20 stores, is in the process of closing down due to its losses, mainly from impacts of the Covid-19 pandemic.
Lotteria franchises in Vietnam have all stopped operations, the Koreatimes wrote, and its headquarters in Seoul is reviewing the possibility of closing down the business within 2021. It didn’t make any profit last year.
The chain now has more than 260 stores including 100 under the franchise model across Vietnam since 1998.
The Vietnamese market is considered as potential market for the development of the food & beverage industry. With the desire to develop sustainably and consolidate its leading position in this vibrant market, Lotteria started franchising to co-develop with partners nationwide from October 2014.
As of April 2020, Lotteria was the leading fast food chain in Vietnam with 151 stores, followed by Jollibee with 115, according to Statista, a German market research firm.