Lotteria Group only withdrew food business from Indonesia. In contrast, business in Vietnam is still going on normally and expansion plans are being implemented.
On April 16, Korea Times reported that Korea Lotte Group is looking to withdraw its food business from Southeast Asian countries. In the report, Korea Times mentioned that Lotte GRS – Lotte Group’s restaurant business unit, has been shutting down Lotteria fast food chain in Indonesia since last year.
Korea Times also said that Lotte GRS’ overseas office in Indonesia was currently undergoing liquidation. Lotteria franchises in Vietnam had all stopped operations and its headquarters in Seoul was reviewing the possibility of closing down the business within this year.
Lotteria Indonesia, which operates more than 20 stores there, is in the process of closing down after net losses reached 7 billion won in 2020. In the same period, it increased capital by issuing new stocks to raise 12.3 billion won to pay off its debts.
However, Lotteria Vietnam indicated that the information above has been misleading. It is true that Lotteria will withdraw food business from Indonesia, but Lotteria Vietnam is still proceeding normally and an expansion plan is underway.
Lotteria has franchised nearly 100 stores in Vietnam. This year, the company will open 10 more stores and a new plant in Long Hau Industrial Park, Long An Province to supply raw materials for the entire Vietnamese market. This shows Lotteria’s strong commitment to Southeast Asian market, especially Vietnam. Last July, Lotte Food, an affiliate of Lotte GRS, also invested in a new Vietnamese corporation. But the COVID-19 pandemic has delayed further progress.
Entering Vietnam market since 1998 up to now, Lotteria is one of the best growing fast food chains in Vietnam besides big brands such as KFC, Jollibee, Texas Chiken, PapaPop, Popeyes, etc. The company is running 268 outlets, of which 86 stores are franchises.