Launching a fast‑food chain in Vietnam is an appealing trend, especially with the rapid growth of the middle class and modern consumer habits. However, beyond the revenue potential, businesses also face increasingly complex operating and logistics cost challenges. How can one optimize these two key factors while maintaining stable business performance?

Factors That Cause Fast‑Food Chain Operating Costs to Escalate Quickly
Rolling out a fast‑food chain model not only requires a strong brand strategy, but also tight control over fixed and variable costs. Some common causes for rising costs are:

Real estate and manpower costs in major cities
In cities like Ho Chi Minh City or Hanoi, rental costs for prime locations often account for 30–40% of total operating costs. Alongside that is the pressure of recruiting and retaining staff in the food service industry, which has a high turnover rate. If these challenges are not planned properly, a chain may grow fast but also incur losses rapidly.

Fragmented chain management
As the number of outlets increases, lacking a centralized operational system or management software can lead to major waste in ordering, delivery, financial reporting, and quality control. New brands often struggle to build a flexible operational governance system from the outset.

Legal barriers in expansion
Many foreign fast‑food brands entering Vietnam face difficulties in licensing, setting up food safety standards, fire safety compliance, etc. These issues can delay grand openings and incur extra rental costs without revenue.

Legal solutions and logistics strategies to save costs
To control costs well while scaling effectively, a company needs a holistic strategy encompassing legal, logistics, and operational models.

Optimize legal structure and franchise agreements
Choosing the appropriate legal model when opening a fast‑food chain can save substantial legal, tax, and operational costs. A company may opt for fully self‑operated or franchising models. The franchising model helps scale quickly but requires strict control systems and well‑drafted franchise agreements to protect the brand and avoid future disputes.

In addition, clauses in real estate lease contracts, labor contracts, and supplier contracts should be carefully reviewed to avoid penalties or unexpected costs.

Synchronize logistics and supply chain systems
Logistics is one of the decisive factors in the success of a fast‑food model. To optimize cost, the company should establish distribution centers (DCs) in key areas to shorten delivery distances, thereby reducing transportation costs and supply chain disruptions.

Specifically, the company should choose transportation partners experienced in F&B models, leverage GPS technology, temperature control, and ensure delivery timeliness. Adopting automated inventory management systems also helps optimize cash flow and avoid waste of ingredients.

Tax consulting and appropriate financial planning
Operating costs directly impact a company’s tax obligations. Therefore, from the start, investors need a sound tax planning strategy: from selecting the business sector codes, choosing corporate headquarters and branch locations, to allocating revenue and expenses appropriately among member entities.

Tax incentives in certain zones (industrial zones, remote regions) can be utilized for placing processing plants or logistics centers. This requires in‑depth advice from legal and tax consultants.

Develop standardized and flexible internal procedures
One of the most effective ways to save costs is to build a clear set of internal standard operating procedures (SOPs) tailored to the realities of each area. Whether managing one outlet or hundreds of points of sale, standardizing the cooking process, service, incident handling, etc., helps save training time, boost productivity, and reduce mistakes.

In particular, in the trend of automation, companies should integrate order management software, CRM, ERP, etc., to digitize operational workflows, thus saving manpower and increasing scalability.

Investing in a fast‑food chain model is not merely about cuisine. It’s a strategic play involving legal structure, logistics, and financial management. A company must be equipped with sufficient knowledge, tools, and a professional team to ensure sustainable growth and cost optimization.

With a team of experienced lawyers, DEDICA confidently accompanies enterprises throughout the journey. We not only offer precise legal solutions but also provide strategic direction to help investors break through in Vietnam’s promising market.

Are you planning to open a fast‑food chain in Vietnam and need comprehensive legal consulting?
Contact DEDICA for support in building the legal model, logistics strategy, and operational system best suited to your development goals.
Contact DEDICA Law Firm for in‑depth legal advice!
📞 Hotline: (+84) 39 969 0012 (Support via WhatsApp, WeChat and Zalo)
🏢 Head Office: 144 Võ Văn Tần Street, Xuân Hòa Ward, Ho Chi Minh City
🕒 Working hours: Monday – Friday (8:30 – 18:00)
Reach out now to receive the first legal consultation free from our professional team!