Chains, M&A and franchising drive growth

Along with the strong and systematic development of the chain model, the Vietnamese F&B market in 2025 promises to witness an explosion of M&A and franchising activities, as brands push to expand, optimize cash flow and increase value.

F&B Market 2025: Chains, M&A and Franchising Lead Growth Momentum

Along with the strong and systematic development of the chain model, the Vietnamese F&B market in 2025 promises to witness an explosion of M&A and franchising activities, as brands push to expand, optimize cash flow and increase value.

That is the opinion of experts and businesses at the Panel talk "What are the opportunities for new F&B business recruits in 2025", within the framework of the Press Conference to announce the Food and Beverage Market Report in Vietnam in 2024, conducted by iPOS.vn in collaboration with Nestlé Vietnam Limited Company, under the advice and data appraisal by Vietnam Industry Research and Consulting Joint Stock Company (VIRAC).

Experts and business representatives discuss business opportunities in the F&B industry in 2025.

More and more brands are promoting the development of chain models.

Mr. Nguyen Do Anh Quan, Brand Director of iPOS.vn shared that according to the recently released Vietnam Food Business Market Report 2024, in 2025, the Vietnamese F&B industry will continue to maintain a strong growth rate, with revenue from F&B chains expected to reach VND 55,208.9 billion, an increase of 14.4% compared to 2024. Meanwhile, independent stores will have a slower growth rate, reaching VND 700,184.5 billion, equivalent to 9.3%.

This difference clearly shows the shifting trend of the market as F&B chains gradually dominate thanks to their methodical operating model, cost optimization and ability to expand quickly. In contrast, independent F&B stores face more challenges in maintaining and competing with large brands.

It is forecasted that by 2028, the revenue of the F&B chain could reach VND 81,435 billion, accounting for 8.34% of the total revenue of the industry, affirming the increasingly important role of brands with a systematic system and clear positioning.

Not only expanding in scale, the F&B market is also witnessing a change in development locations. Instead of focusing on the centers of large cities such as Hanoi or Ho Chi Minh City, brands are gradually moving to the suburbs and tier II and III cities.

This shift is not only due to the need to expand market share but is also driven by many factors such as the trend of leaving urban centers to seek a cleaner living environment, the strong development of e-commerce and flexible working models that help people no longer rely too much on central areas.

In addition, the emergence of satellite megacities such as Vinhomes Co Loa or Vinhomes Dan Phuong has attracted a large number of residents, creating strong momentum for the local economy and opening up great opportunities for F&B brands.

M&A and franchising activities on the rise

In addition to the expansion trend, M&A (mergers and acquisitions) activities in the F&B industry are also growing rapidly. According to Mr. Nguyen Thai Binh, co-founder of Concepts Academy (VCS), instead of investing in new brands, many investment funds are prioritizing the acquisition of existing F&B chains to take advantage of cash flow and minimize risks.

“A business with stable revenue is always more attractive than a startup brand from scratch, because acquiring an existing system helps investors shorten the construction time, take advantage of an effective operating system, and increase the value of the investment portfolio. Owning a business with stable revenue not only ensures positive cash flow but also helps increase valuation value, creating advantages in the next rounds of capital calls,” Mr. Nguyen Thai Binh shared.

However, to be able to participate in M&A deals, businesses must be well prepared, especially in terms of financial records. According to Mr. Do Duy Thanh, Director of FnB Director, investors often review the tax reports of businesses in the last 2-3 years to assess the level of financial transparency. Fully fulfilling tax obligations, especially value added tax (VAT), is a mandatory condition to create trust with investment funds. Reality in Vietnam shows that if a business does not have clear financial records, investors often require the establishment of a new company and transfer all assets and brands to this business before the transaction to ensure transparency.

Along with M&A activities, 2025 is also predicted to be a boom period for the F&B franchise model. One of the major driving forces behind this trend comes from the wave of 100,000 people enjoying benefits under Decree 178 of the Ministry of Home Affairs. This group, including civil servants and public employees after leaving the state apparatus, will have a certain amount of capital to start a business. In particular, the F&B industry continues to be a priority choice due to its easy penetration and high success rate if operated properly.

In addition, the wave of layoffs in the private sector in early 2025 due to economic pressure will also create a large number of employees with a tendency to start a business, similar to what happened in 2024. When businesses cut staff to optimize costs, many workers choose to start their own business instead of continuing to work for others. With a not too large investment level and an increasingly optimized franchise model, F&B continues to be an attractive industry for those who want to start a business but do not have much management experience.

Not only growing in quantity, the franchise model in Vietnam is also becoming increasingly standardized. Mr. Do Duy Thanh commented that while in the past, many brands pursued quantity and prioritized revenue from franchise fees, now businesses are more closely controlling their franchise partners to ensure the model operates properly, maintaining product quality and brand reputation.

Along with that, investors are also becoming more cautious in choosing franchises. Instead of just paying attention to the franchise price, they focus on the values ​​that the parent brand can bring, the operational capacity of the chain and the level of commitment to support from the franchisor. This trend makes the franchise market more professional, when both sides have strict selection criteria to ensure the sustainability of the model.

In general, the F&B market in Vietnam is entering a period of strong expansion with a shift in business locations, a vibrant M&A wave and the professional development of the franchise model. In the context of increasingly cautious investment funds, businesses with a methodical operating model, transparent finances and great expansion potential will have a distinct advantage.

2025 promises to be a year of breakthrough growth for the F&B industry in Vietnam, with many big deals, bold expansion strategies and steps to help the industry reach further on the regional business map.

Source: https://baodautu.vn/thi-truong-fb-2025-chuoi-ma-va-nhuong-quyen-dan-dat-da-tang-truong-d255918.html