An insight into Vietnam’s F&B industry: The past, present and future with hospitality expert Chris Thompson

Awardees of the Heroes of Hospitality initiative championed by Chris Thompson and Matt Cowan, founder of The Bureau Asia, to recognise Ho Chi Minh City’s up and coming leaders in the hospitality industry and pay tribute to the unsung heroes of the industry.

Chris Thompson, ambassador of The Rothschild Estates for Indochina, Editor-at-large for Harper’s Bazaar Vietnam and The Drinks Business Asian Awards 2020 Influencer of the Year

BRIEF INTRODUCTION

Originally from Liverpool, Chris Thompson has worked with corporate giants such as British Airways, Danone, Nestle in sales and marketing roles up until 2006 when he started working for Pernod Ricard in London and got a taste of the luxury industry. Since then, Chris has worked with some of the top luxury brands in the F&B industry including Martell, Glenlivet and Perrier Jouret.

Today, Chris Thompson wears multiple hats in the industry from ambassador for Rothschild Estates for Indochina to Editor-at-large for Harper’s Bazaar Vietnam and even The Drinks Business Asian Awards 2020 Influencer of the Year. Having called Ho Chi Minh City home for the past 7 years, Chris has played an integral role in raising the profile of Vietnam’s F&B industry as well as its people in both Vietnam and around the world.

THE NATURE OF VIETNAM’S F&B INDUSTRY

Consumers

• Savvy - Consumers in Vietnam are very savvy and well-informed. This means they know very much what’s going on in the industry from new launches to reviews and so forth. This is largely driven through Facebook community groups such as the popular “Foodies in Saigon” group which has more than 32,000 members!

• Value-driven - Consumers want value for money. This does not necessarily mean that they’re looking for something cheap but they’re simply very price aware and look for good deals. From a 3-course lunch time deal to a 5 million VND or even 7 million VND at a 5-star hotel where you can still get great value for money because of the amazing quality of the food and drink.

• Supportive - Consumers here are incredibly supportive and I’d love to see some stats if they were available to what extent people in Ho Chi Minh City eat out compared to other cities in Vietnam or other cities around the world but I’m sure it’s very high.

• Challenging - Needless to say, consumers can be challenging if the service isn’t right or if your restaurant isn’t operating at the standards that you should be. They’re very comfortable telling restauranteurs about it, calling them out or simply broadcasting their opinions on social media which might not necessarily be a bad thing at all.

Restaurants

My overriding feeling is dynamic seeing there’s a lot going on and the other being eclectic because there’s an incredible amount of choice. Just this week I had tried two different types of kebabs, one by Kebabs & Wraps and the other by Kebaby, both of which were superb. There’s a whole range of different types of cuisine from Vietnamese to even Moroccan, there’s literally everything here.

Thirdly, restaurants here are very welcoming particularly around hospitality and last but not least frivolous because sometimes I feel there might even be too many restaurants here. There have been times when I’ve walked into a restaurant and thought to myself “What’s going on here? What are the owners’ motives? Will this restaurant still be here in 3 months or 6 months?”

WHAT MAKES VIETNAM’S F&B INDUSTRY SO UNIQUE

In terms of what is so unique about the industry in Vietnam. I’m reminded of a quote by Arsene Wenger, a famous French Arsenal football manager who said “every man thinks he has the most beautiful wife“ so of course here in Vietnam we’re gonna think there are many incredible things about us particularly the ingredients, the seafood and so on.

But then I think if you’re sitting in Thailand or Malaysia or any other country you’ll probably say the same thing. So what I find really unique here is the camaraderie amongst people within the hospitality industry and the warm service by people here who really go that extra mile to look after the customers here. A big part of this is driven by the young nature of the workforce here and they’re the ones driving the trends in the market. There’s an energetic and well-educated workforce coming through and I was able to experience and highlight some of these young Vietnamese talents through an initiative co-hosted with Matt Cowan, founder of The Bureau, called “The Heroes of Hospitality” which featured 11 young people making an impact in the industry. These included mixologists, chefs, service leaders and so on. I believe that the young dynamic workforce here is what sets Vietnam’s hospitality industry apart from the rest of the region.

KEY CHANGES TO VIETNAM’S F&B INDUSTRY IN LAST 5 YEARS

The Growth of Technology from Food Delivery to Social Media

The growth and advancement in technology from home delivery as well as social media channels such as Facebook and Instagram has really impacted how restaurants connect and communicate with their customers and we saw this connection between key stakeholders within the restaurant such as chefs and owners really accelerate and play a very important role last year during the pandemic. I will delve more into this later.

The Rise of Independent Restaurants

When I first came here in 2014, there weren’t the likes of independent restaurants such as Quince, Anan, Stoker, Kiba, Sol or Octo Tapas Restobar. These restaurants only sprung up in the past couple of years and have raised the standards of restaurants here by bringing a strong set of international capabilities and food programs. This has also developed into what I’d like to call “The rise of the cult of the chefs”.

The “Cult of Chefs”

I have to be very careful when talking about the ‘cult of the chefs’ but it boils down to the importance of a chef’s personality and is so much more prevalent than when I arrived in 2014. When I first got to Vietnam, you’d struggle to name even 5 or 10 chefs in town. There was obviously Tristan Ngo from Skewers who’s been in business for a long time as well as Chef Sakal from Le Corto. Tristan and Sakal were the two main guys back then but in the past couple of years, you’ve got Peter Cuong Franklin from Anan, Julien Perraudin, Head Chef at Quince and George Bloomfield from Stoker Restaurant and Grill, Luke Nguyen, host of the television series, Luke Nguyen's Vietnam and Luke Nguyen's France and Harold Ngo, Masterchef Vietnam winner and Head Chef at The OX not only Ox. These guys are almost brand ambassadors in their own right. Take George Bloomfield at Stoker’s for example, he famously announces what’s going to be on the set lunch at Stoker and that drives loads of customers to the restaurant. This is one of the major changes in the past 2 to 3 years that has really taken off and if not for Covid, there would have been more chefs coming in and this phenomenon would have taken off even more.

What are some driving forces behind these changes?

Well I think it’s largely the case that Vietnam is following global trends of more exposure, more travel, increased technology adoption and appreciation for food and so on but also the conducive business environment for entrepreneurs. Furthermore, as mentioned the hospitality and F&B industry is very welcoming and so are its people.

HOW VIETNAM’S F&B INDUSTRY REACTED TO COVID

There was a big increase in home delivery and a lot of talk around paperless ordering, paperless payments and more technological developments and so on. However the main thing I noticed is restauranteurs becoming a lot closer to their customers and the community. So what we talked about earlier is that there’s been a lot more home deliveries and interestingly it’s usually the restaurant owners themselves being active on the chats and taking the orders themselves, dealing with the customers so in many ways this was a positive development because the guys who own the restaurant are more aware of the needs, patterns and the behaviours of their customers. But I think during the difficult times they probably appreciated the support even more and as a result that relationship has grown further.

During this time you also see key management team members working even harder and wearing multiple hats. This is probably one of the factors why you see chefs being so much more active on social because they’ve got to work a little harder to make sure they’re presenting the new dishes or the new menu that they’ve got. You see this from Julien Perraudin at Quince as well as George Bloomfield from Stoker Woodfired Grill & Bar, who actively share images of their food on social media.

THE FUTURE OF VIETNAM’S F&B INDUSTRY

Where do you see Vietnam’s F&B industry heading in the next 5 years? What are some things we can expect to see?

The Empire Strikes Back

One of the things that I’m sure is going to happen is what I’d like to call “The empire strikes back” and what I’m referring to is the 5-star hotel industry that has really struggled in the last 12 months. I believe when travel is back to normal again and the Covid situation calms itself down, these 5-star hotels will rise to prominence again and place a strong focus and importance on building their F&B concepts and adopting localised marketing strategies.

As an example you’ve got the Mandarin Oriental in Saigon that has also announced that they’ll be opening in Da Nang, the Regent opening in Phu Quoc and the Azerai that has just recently opened in Mui Ne. So as soon as the borders open and travellers can start visiting, I firmly believe the 5-star hotels will very quickly re-establish themselves again. It’s just a matter of when.

The Rise of Hybrid Establishments

So when I talk about a hybrid, I refer to a single building where you’ve got 2 to 3 concepts under one roof. If you think about it, this makes a lot of sense seeing one of the main challenges that any restaurant experiences is rent isn’t it? Furthermore, a lot of buildings in Vietnam tend not to be particularly wide but very tall so you’re currently occupying 2 floors of a building, the likelihood is you might want to develop a 3rd, 4th or a 5th floor.

A great example of this is Peter Cuong Franklin’s concept Anan, which spans 2 floors and then he’s got Nhau Nhau the cocktail bar on the 3rd floor, Pot Au Pho, a pho concept on the 5th floor and last but not least Elevate on the rooftop. So I think you’re going to see a lot more of that.

What happens with these hybrid concepts is that you effectively capture a greater percentage of customer spend since you’re appealing to different dining behaviours through the various concepts. Most importantly, you’ve made it convenient by being under one roof as well. In the past I might have been in a restaurant somewhere and wanted to go to a rooftop bar after but as you know by the time you’ve paid the bill, messed around a little bit, found a taxi, have a few problems getting to the table.. you’ve lost the momentum of the evening and you have to get yourself going again. Hence, I believe the hybrid models not only make sense for restaurants but also for consumers by making it so much more convenient.

Interesting that you’ve brought up this concept of hybrids as I was just at Lacàph Coffee Bar in Đồng Khởi, Bến Nghé, District 1. As you know Lacàph Coffee Bar shares the same space as Koheis Bar, Brothers - Boutique Men's Salon and The Saigon Cigar Club. I find this approach really smart as the different concepts are able to cross promote one another and appeal to the different interests of the same target consumer. For example, someone who enjoys Koheis is also likely to get their hair cut at Brothers or their coffee from Lacàph Coffee Bar.

The Cautious Concept Continuation

In today’s current climate we’re not going to see a great deal of chains exploding but rather a lot more tried and trusted concepts cautiously extending. Maybe they’re already in district 2 and thinking of expanding into district 1 or the other way round. A great example of this is Eddie’s who just opened in District 1. The concept is almost identical to its flagship in District 2 so they’ve managed to keep that level of service quality and offering the same. You’ve also got the likes of Racha Room, a great cocktail bar in District 1 that’s coming to District 2 as well as Cafe Marcel, Stoker and Sol Kitchen and Bar. Again, it’s a case of people knowing a brand, what it offers and wanting more of it but I feel this is going to be a gradual growth amongst beloved household F&B brands in the industry.

The Democratisation of Cocktail Culture

So Jay Moir, he’s a very special guy and I’m very fortunate to have known him when he first arrived. When he opened Layla 3 years ago, he made premium and innovative cocktails accessible and available for young Vietnamese to consume. Back in 2014 when I first came to Vietnam I remember if you wanted to enjoy a cocktail, the options were limited and you probably needed to go to somewhere like the Park Hyatt where you’d pay 250K VND ($10 USD) for a decent cocktail. But now you go to Layla and you can get a really good cocktail for 100K VND (3-4 USD) and it’s largely full of local Vietnamese.

The advent of cocktail culture in Vietnam can be traced back to 2014 when Englishman Richie Fawcett set up Sorae and then Australian Gregory Jacob arrived at the Racha Room, again with the guys at Tribe Hospitality and he became known as one of the first foreign mixologists. Jay Moir however spearheaded the democratisation of cocktail culture and if you’ve been to CTY Kitchen and Bar and tried their cocktails, you’ll know that they’re good and reasonably priced. Another thing that Jay Moir has done is make mixology a respected and cool career so now there are these young Vietnamese kids wanting to enter the industry, become a mixologist and one day open their own bar and so on. So this is something we’re seeing more and more of and Jay Moir is a big driver of that.

BECOMING A LEADING CULINARY DESTINATION

In 2019, Vietnam was recognized as Asia’s Leading Culinary Destination at the World Travel Awards for Asia and Oceania. With more than 2.8 million #VietnameseFood posts on Instagram featuring some of the country’s most iconic dishes, Vietnamese cuisine has been ranked as the 9th most popular cuisine on Instagram according to Chef’s Pencil.

While this is a tremendous feat for Vietnam, it has also perpetuated Vietnam’s position as a street food destination rather than a culinary destination. How can Vietnam elevate its position from a street food destination to a culinary destination similar to Bangkok, Hong Kong and Singapore and attract the likes of the Michelin guide and Asia’s 50 Best?

That’s a tough question as it’s a big challenge as well! I personally believe part of it is going to be a natural progression, as we get a greater influx of travellers, foreign investment and hotels coming into Vietnam. This will build other macroeconomic indicators such as increased spending power and education by a growing middle class. These will all raise the profile and variety of F&B establishments in the country. Furthermore with Vietnam being one of the most digitally savvy countries in Southeast Asia, we’re going to see a huge growth in Instagram and Facebook here which will help to promote the new establishments and culinary leaders.

The challenge here is the Vietnamese Tourism Board and the more investment they put into promoting the local F&B scene here, the more it will help drive the likes of the Michelin Guide because I think in order for the Michelin guide to come to a country, they’ll typically need to work with the tourism board of a particular country. So, it’s not something you or I or even our friends can impact too much in the short-term.

Lastly, we need more young people to enter the industry and the more the industry feels attractive, the higher the chances of getting the best of young Vietnamese graduates to come in and drive new trends and innovation within the industry. But the question at hand here is how can we accelerate the profile of Vietnam’s F&B scene on a global level? Well, I believe media powerhouses such as Vietcetera have done a really good job in being an internationally recognised content platform and they’ve got a good focus on F&B and hopefully we’ll see more content around that. Similarly at Harper’s Bazaar we’ve been really successful in raising the profile of Vietnam around the world particularly in America via our Instagram and we are able to achieve this as we actively and consistently push our culinary and lifestyle sector.

With this said, while media plays a huge role, I personally feel we can’t rely on media to drive this mission for us. It needs to be the people in the industry from the restauranteurs to the chefs to think “Is there more I can do to raise the profile of my business?”. A good example that springs to mind is what I’d like to call Peter’s Playbook and I refer to Peter Cuong Franklin, Chef-Owner of Anan Saigon. Many people wonder how and why is he doing so well and if you follow him on Facebook or Instagram or simply Google him, you can find a ton of articles written about him from CNN to South China Morning Post and even the New York Times. He’s very well connected to the media both local and international and hence this has significantly helped to push the credentials of his business and while doing so fly the flag for Vietnam and the F&B industry of the country.

Another thing that Peter has also done is collaborate with other famous chefs from the list of Asia’s 50 Best including David Lai from Neighbourhood in Hong Kong (#32 on Asia’s 50 Best Restaurant's 2019) to come to Vietnam and cook together. So of course when somebody like David or Chef Ton from Le Du (#8 on Asia’s 50 Best Restaurants 2020, Michelin; 1-Michelin star, 2021) work with Peter, all that exposure is magnified outside of Vietnam and I think at some point Peter is planning to visit Hong Kong or Bangkok to return the favour so I’d love to see some of the other top independent restaurants doing these kind of regional collaborations.

Ultimately we need to engage more with external media and that’s one of the things I try to do with my own network of contacts in Europe and around the region. I love it when I post something on my social media channels and I get comments from people in Bangkok, London or the US for example and it’s really about making people more aware of what we’re doing in Vietnam. So there’s maybe even more responsibility on all of us or everyone within the industry to do as much as they can.

Last but not least, what advice would you give aspiring restaurateurs and F&B professionals wanting to enter Vietnam’s F&B industry?

I think the key question for those looking to enter the industry is “What is your motive and why do you want to get into the business?” because it’s a lot of hard work. What you see on social media, the nice photos of the restaurant and beautifully plated dishes, it’s just 5% of what goes into running a restaurant. You don’t see the early mornings or the late nights, the spreadsheets and so forth so you’ve got to be very sure why you want to do this because it’s not easy.

Secondly, you have to be prepared and patient because it’s a long-term game and you gotta stick with it. The people who I’ve seen do very well in this industry are consistent and have been in the business for a long time because well, it takes time for it to pay off. Thirdly, you’re going to need a clear concept to begin with and stick to it otherwise you’re going to confuse your customers and yourself which is even worse.

Finally, the most important bit of advice that I’ve heard is look after your staff. Because when you look after your staff, they’ll look after your customers and if you look after your customers you’ll be okay.

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