The F&B market in Vietnam is undergoing a strong transformation. According to our market report released last week, it will continue to witness a significant expansion of brands, with a forecast of over 331,000 stores by the end of 2025, a growth rate of 2.6 per cent over 2024.In addition, the franchise model is also booming. Many businesses looking to expand, instead of operating independently, are opting for franchising to optimise costs and risk management.In 2024, around 45 per cent of F&B businesses surveyed for our report said that raw material costs accounted for 30 per cent or more of their selling prices, with 6 per cent of businesses having costs exceeding 50 per cent, pushing profit margins to dangerous levels.Conversely, only around a quarter of businesses have a raw material ratio below 20 per cent of selling prices, indicating that input cost pressures are increasing significantly, forcing businesses to find ways to adapt.The increase in raw material prices is driven by various factors, including inflation, escalating transportation costs, limited supply, exchange rate fluctuations, and rising labour wages. Some F&B businesses have raised prices by 5-15 per cent, sought new suppliers, and applied technology to manage costs.There are three main solutions that F&B businesses can consider for costs optimisation, ensure sustainable operations, and improve efficiency.The first solution is to optimise rental costs. According to our research, a large number of premises have been left vacant. This is an opportunity for businesses to negotiate with landlords to obtain more reasonable rental prices.Next, F&B businesses need to manage raw material costs. While the trend of rising raw material prices persists, businesses can seek reliable suppliers to establish long-term procurement contracts. This helps stabilise raw material prices, limiting the impact of market fluctuations.Diversifying suppliers is also an important solution to give businesses more control in cost management. Lastly, leveraging technology to save operational costs is crucial. Technology plays a vital role in streamlining business operations. Implementing technological solutions not only helps manage personnel effectively, but also reduces losses and enhances cost control. According to iPOS calculations, technology can help businesses save around 3 per cent of total operating costs.Providing comprehensive operational management solutions to help restaurants perfect their processes, reduce costs, and enhance business efficiency should be focused. Also encouraging the integration of technology with food delivery platforms and electronic payment systems to help businesses expand sales channels and reach more customers.By leveraging technology, iPOS. vn’s products help businesses predict trends, manage inventory, and especially optimise operations. In the current volatile market environment, making decisions based on data rather than intuition will be the key to ensuring stable business growth.Furthermore, the franchise trend is expected to see further development, as many individual investors seek to enter the industry but prefer a less risky model.The digital transformation factor and technology integration will become a crucial competitive advantage. If F&B businesses can adopt technology early, optimise operations, and enhance customer experience, they will have more opportunities for development in the future. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Investment Review