INTRODUCTION INDUSTRY OVERVIEW

Pizza 4P's is a pizza company founded in Vietnam, by a Japanese couple Yosuke Masuko - Sanae Tagatsuki From a restaurant in a small alley on Le Thanh Ton street, this company is now present in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, Hai Phong with a total of 24 branches. Originally as a startup, it is now famous for being successful in the fast-growing F&B industry In May 2019, Pizza 4P's completed receiving investment from Mekong Capital's fund. Previously, this restaurant chain also successfully raised capital from Seedcom, Chikaranomoto (who owns the Ippudo ramen restaurant chain in Japan), and Cotto

Despite appearing quite late in Vietnam compared to big brands like Pizza Hut and Domino's Pizza, Pizza 4P's quickly won the hearts of Vietnamese people Freshly-made pizzas from Pizza 4P's have even become a must-try for gourmets. Even during the holiday season, Pizza 4P's frozen pizzas or pastas are also sought after throughout the online market, and many people even gather to sell at a higher price So why are pizzas originating from Italy, created by the Japanese, so popular with Vietnamese people?

For those who have ever visited Pizza 4P's, there is no need to discuss the delicious taste of the pizzas here. Nevertheless, in this article, we will discuss unique factors of Pizza 4P's other than tastes, including: localization, sustainability, and fine-dining concept

A glimpse into the FnB industry:

The F&B (Food and Beverage) industry includes all companies that participated in transforming raw agricultural ingredients into consumer food products Its market consists of fresh/prepared food and alcoholic/nonalcoholic beverages, which are manufactured, packed, and distributed to meet customer demand Examples of the FnB industry include restaurants, cafeterias, fastfood joints, food manufacturing operations, catering businesses, and food transportation services [1]

In 2021, the global FnB market size was worth 5.8 trillion US dollars. The market is predicted to grow at a compound annual growth rate of 87%, reaching 89 trillion US dollars in 2026 [2] In particular, Asia Pacific has the largest market share in the market Within the region, Vietnam’s FnB market was ranked within the top 10 most attractive markets. In 2019, Vietnam reached a total sales of 417 million US dollars, and continued to grow 38% in 2020 [3]

Pizza Market Share

a. Worldwide:

One of the fastest-growing sectors in the FnB industry is the pizza industry. It is undoubtedly one of the most famous dishes in the world According to UpMenu [4], almost 90% of people in America eat pizza regularly Pizza market share is variable, in which there are international pizza chains and local restaurants Major pizza chains like Domino and Pizza Hut contribute up to more than 69 percent of the US pizza chain market share

From this information, people could infer that a well-known chain would be an aggressive, formidable competitor to the small independent pizzeria However, coming to the Vietnamese market, the playground is opposed, with a more balanced position between global chains and locally produced outlets b. Vietnam:

The food service industry in Vietnam has expanded tremendously compared to ten years ago

Pizza 4P's:

According to VietnamCredit (2021)[6], there are about 540,000 stores, more than 400,000 stores are street vendors, 80,000 eat-in restaurants, and about 7,000 fast food restaurants. Food is the primary component of Vietnamese household daily spending, of which 20% is for eat-in restaurants versus 1% into fast food restaurants [6] This shows how niche the market for the pizza industry is.

Despite the niche industry, pizza successfully maintained a “hot serving” for both customers and the investors According to Mr Dinh Hong Son [7], General Director of Finance, there are three reasons that the pizza industry is an attractive one: Firstly, pizza is a world famous cuisine, and as the globalization trend speeds up in a country with such a crowded population like Vietnam, the potential is huge. Secondly, the Vietnamese population is in a young state At this phase, adaptation to global culture is fast This generation could adopt a new eating culture like pizza and maintain the habit until old age, which is a unique point about the longevity of a young market Finally, the average income of Vietnamese citizens is on the rise, especially in big cities like Ho Chi Minh City and Hanoi.

The appearance of fast food chain Pizza Hut by IFB Holdings (Vietnam) and Jardine Restaurant Group (HongKong) brought to Vietnam in early 2007 shed lights to steeppriced pizza such as Pizza Inn, Domino Pizza (USA), and Pizza 4P's

Pizza Hut:

Pizza Hut Inc. is the biggest pizza chain in the world, regarding both number of outlets and percentage of market share It is the subsidiary of PepsiCo, Inc, the company owns more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide [10]. Because of the available strength of the name and financial potential of the owner, Pizza Hut has quickly risen and become the key player in the pizza segment in Vietnam. In early March 2013, the company had over 27 restaurants across the country from Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong, and Can Tho They have also established Pizza Hut Delivery that focus on delivery in Hanoi and Ho Chi Minh city