Russia’s Dodo Pizza will close all of its Ho Chi Minh City outlets from May 26, due to “many objective factors and new strategic directions”, Tuoi Tre has reported.
Whereas comments from the company in the article are limited, its author, Bong Mai, suggests that Dodo Pizza struggled in Vietnam due to a combination of factors including:
- Timing issues: The brand’s entry into Vietnam coincided with the COVID-19 pandemic, which forced it to delay store openings due to social distancing restrictions.
- Fierce market competition: Vietnam’s pizza market is crowded, with strong players like Pizza 4P’s (local), Domino’s and Pizza Hut (US), and The Pizza Company (Thailand), plus a wide variety of international and domestic competitors.
- Consumer taste preferences: The article hints that Vietnamese consumers still favour traditional local foods, making it harder for foreign fast food brands to win market share.
- Cost and value pressures: The saturated food and beverage market in Vietnam demands high quality and competitive pricing, which may have been difficult for Dodo Pizza to sustain.
Although Dodo Pizza had strong global growth, the author seems to imply it may have underestimated the need for aggressive localisation and market fit in Vietnam’s competitive F&B landscape.
See also: Vietnam’s Food and Beverage Industry 2025: Market Trends, Exports, and Key Players