COMPARISON ABOUT THE CONSUMER BEHAVIOR OF GENERATIONS IN CONSUMPTION

RESTAURANT FOOD (FAST FOOD) IN VIET NAM

1. Introduction
1.1. Short profile of that product
The fast food industry accelerated at a great pace and became the large chains of the food industry (Lattin,
1985). The growing competitive pressure from other industries poses serious challenges for traditional fast food
chains with the big foreign brands like KFC, Lotteria and Jollibee from 2004, and it is more fierce with the big
brother of America’s top brands, McDonald’s. The good example is that KFC represents the population of interest, 44
fast-food outlets in Vietnam, and estimated to reach 100 stores in 3 years (Thịtrườngfastfood,n.d.). According to
statistics of the Ministry of Industry and Trade, the total sales of the fast food industry in VietNam in 2023 is
estimated at 870 billion, up 30% from 2022.
To meet customer needs and improve store sales, many fast food brands began to make appropriate changes.
KFC has begun to change the menu to suit Vietnamese tastes with dipping sauces, sauces or lunch sets suitable for
office workers. McDonald's recently launched a Vietnamese pho-flavored hamburger product only for Vietnamese
customers. Lotteria tries to add flavor to express Vietnamese identity. It can be seen that foreign brands are trying to
conquer Vietnamese customers. Fast food is often fried, spicy, and pre-processed food that is not good for health, but
it has the advantage of stimulating the taste buds, making you feel delicious and comfortable when enjoying. Fast
food also meets the need for quickness and convenience of young people and busy modern people, so the Vietnamese
fast food market is constantly growing. With growth of 30% per year, the fast food market is the potential industry
which has had a high growth and stability in the consumption food industry recently.

1.2. Target customer and target market

*Target customer:
 Young adults: As mentioned earlier, this demographic is generally considered a key target for fast food
restaurants in Vietnam. Young adults are typically more adventurous when it comes to dining out, open to trying new
flavors, and more likely to frequent casual dining places than older generations. They are also more likely to make
use of food delivery services and follow food-related trends on social media.
Working class individuals in Vietnam are often time-constrained, juggling long working hours and often
busy commutes. Fast food restaurants offer a quick, convenient, and affordable dining option for these customers,
often located in areas with high foot traffic, like business districts and shopping centers.

*Target market:
Urban centers: Major cities in Vietnam, especially Ho Chi Minh City and Hanoi, are the primary locations
for fast food restaurants due to their large populations, high population densities, and developed economies. These
cities have a significant middle-class population, which is the main target audience for fast food restaurants. Other
major cities, like Da Nang and Hai Phong, are also important markets due to their growing populations and
increasing economic activity.

2. Comparison of the behaviors

2.1. Introduction about 4 Generations (X, Y, Z, Baby Boomers)
 .

GEN X:
Generation X is the generation of people born between 1965 and 1980. In Vietnam, Gen X is often called the 7x-8x
generation. Gen X is the first generation to witness the change from an industrial economy to an information
technology-based economy. They have played a key role in promoting the development of the technology industry, the
internet and new technologies. This generation is located between Baby Boomers (1943 - 1964) and Gen Y (1981 - 1996).
Gen X is in their forties (42 -57 years old), they have the habits of the older generation. Even though they use Social
Networks, they still prefer watching TV, reading newspapers and listening to the radio. They carry within themselves core
values ​in life and career including: independence, balance, flexibility, understanding but not dependence on technology.
GEN Y:
Generation Y (or Millennials) is a term often used to refer to the group of people born between 1981 and around
1996 - 2000. In Vietnam, Generation Y was born and grew up in the period when the country transformed with the
advancement of technology, social networks, and communications. Therefore, they have a relatively solid amount of
knowledge compared to previous generations.

GEN Z:
Generation Z (English: Generation Z or Zoomers) is the term used to refer to the generation born between 1997 and
2010. Gen Z is the first generation born and raised during the boom period. explosion of information and communication
technology. Gen Z is also called "iGeneration" or "Digital Natives", because they grew up in an era where digital
technology, the Internet and mobile devices are growing strongly. In Vietnam, Gen Z generally only accounts for about 20%
of the population; Currently, Gen Z is divided into two main groups: Those starting to work and those still depending
heavily on their parents.

GEN ALPHA:
Gen Alpha or Generation Alpha is a term used to refer to people born from 2010 to 2024. Children of Gen Alpha are
often children of Gen Y (Millennials) and younger siblings of Gen Z, who live in an era of outstanding technological
development. Therefore, this generation will be able to proficiently use modern technological devices, can quickly access
information along with progressive lifestyle, thinking, and awareness. With more than 2.5 million people born every week,
Gen Alpha is predicted to be the largest consumer group in history and a promising target group after Gen Z that brands will
target in the future…

2.2. Mối liên hệ giữa Generations và Product và chỉ ra đặc điểm của từng gen (lí giải vì sao họ lại có hành vi như
vậy)
 Gen X Gen Y Gen Z Gen Alpha

Association - Age: Born roughly Age: Typically, Gen Y Generation Z was raised Convenience and speed:
of the between 1965 - 1980, Gen includes individuals born when the country was Gen Alpha grew up in the
generations X in Vietnam is currently between 1981 and 1996. undergoing rapid change, age of technology,
in product between 44 and 59 years As of 2024, they are including an economic boom emphasizing convenience
old. between 28 and 43 years along with the rise of and speed. Fast food
- Values: Often known for old. technology and the internet. meets this need with a
valuing practicality, Values: They value In Vietnam, approximately 15 diverse menu that is easy
work-life balance, and convenience and million Gen Z are making up to shop and enjoy.
efficiency. efficiency, making fast around 26% of the labor force
- Finances: May be more food an attractive option. nationwide. Attractive flavor: Fast
established financially They often prioritize A survey for food vendor food often has rich
compared to younger spending on experiences, preferences was taken and flavors, lots of grease, salt
generations. such as dining out, over found that 25% preferred and sugar, attracting
- Food Preferences: Might purchasing material fast-food restaurants, 18% children's taste buds.
have a stronger focus on goods. preferred roadside
familiar flavors and Finances: Have higher restaurants, and 17% Connectedness: Enjoying
potentially some nostalgia disposable incomes, preferred convenience stores. fast food with family and
for traditional Vietnamese especially those in the The characteristics of the friends is Gen Alpha's
cuisine. latter part of the age range young people in Viet Nam are way of interacting and
- Health: May be who have established high start-up spirit; busy connecting socially.
increasingly concerned careers, while others may lifestyle; need for
about health as they age, still be facing financial convenience; low income; Influence from KOLs:
but not necessarily challenges like student wanting to save time to Gen Alpha is easily
debt or the high cost of study, work. Therefore, the influenced by KOLs,
prioritize it over taste or living. demand for fast food at especially Kidfluencers on
convenience entirely. Food Preferences: Enjoy reasonable prices is the social networks. When
a wide variety of cuisines urgent need. In addition, KOLs love and review
Value and Convenience: and are open to trying new young people are keen, fast food products, Gen
Affordability and and international dishes. daring, and fun to approach Alpha tends to try and
time-saving convenience Fusion foods and new things, even in cuisine. choose. And because Gen
are key drivers. Busy innovative menu items are Young people tend to choose Alpha tends to love
schedules and particularly appealing. food stores to meet their own humorous content, they
budget-consciousness make Health: Many are urgent needs: fast-processed often choose fast food to
fast food a viable option for interested in dietary trends food or immediately sold, satisfy their need for
occasional meals. such as plant-based diets, being able to carry away, time entertainment and
Limited Frequency: Fast low-carb options, and saving and reasonable prices. experience, especially
food is likely seen as an gluten-free choices. products that are new,
occasional treat, not a Convenience: Millennials Especially, the pandemic has attractive and have
regular dietary staple. They lead busy lives and served as a wake-up call for humorous elements.
might choose fast food for appreciate the time-saving people to recognize the
lunch breaks, quick dinners, aspect of restaurant food, importance of a strong
or outings with children. which offers quick meals immune system and adopt a
without the need for healthy lifestyle and products.
=> Gen X consumes fast preparation or cleanup. Risk perception associated
food, but with a focus on This convenience justifies with COVID-19 may
practicality, value, and their spending on dining influence people's food
occasional treats. Their out. purchase and consumption
choices are a balancing act Quality and Freshness: behaviors. When risks are
between convenience, Millennials value almost unavoidable, people
affordability, and high-quality, fresh find comfort in living a
potentially increasing ingredients and often see healthier life and eating
health concerns. They restaurant meals as nutritious food. So when it
might prioritize familiar superior to home-cooked comes to any food, Gen Z
flavors and utilize fast food ones. They are willing to will be more cautious about
for social gatherings or pay more for nutritious, food’s origin as well as food
family outings. delicious, and safety. In other words, the
health-conscious options. needs and aspirations of
Influences from Social today's youth for food in
Media and Reviews: restaurants are not only fast,
Social media and online tasty but also clean.
reviews significantly
influence Millennials'
dining choices. Positive
reviews and social media
buzz drive them to choose
certain restaurants, often
willing to pay a premium
for trendy spots.
⇒ In summary,
Millennials are willing to
pay for restaurant food
that offers convenience,
quality, and a positive
social experience. Their
engagement with fast food
is heavily influenced by
 social media, where they
discover new options,
seek recommendations,
and interact with brands,
shaping their dining
choices and spending
habits.

The Gen X will likely be more In Vietnam, urban Curious and hungry for new Dependent on parents:
willingness price-conscious than Millennials, with their experiences, Gen Z is always Gen Alpha is not yet able
to pay younger generations when increasing disposable looking for something new, to make money and
it comes to fast food. income, show a similar highly creative and willing to depends on their parents
They'll be drawn to value willingness to invest in pay for it. Vietnamese Gen Z for spending. Paying for
deals and promotions, but dining experiences that have emerged as potential fast food depends on the
might be willing to pay a meet their criteria for consumers for dining brands, parent’s financial ability.
slight premium for quality, health, and social according to new market
perceived quality or responsibility. Their research that found they are Cheap products: Gen
healthier options. tech-savviness and willing to spend a big chunk Alpha can prioritize cheap
reliance on social media of their budgets on eating out, fast food products,
Budget-conscious: While for recommendations also regardless of how much suitable for themselves or
convenience is a factor, influence their spending money they make. their family's affordability.
Gen X might prioritize patterns, as they are more A recent poll of
saving money for other likely to spend on popular 16,000 respondents in Products with
needs. They might cook or highly-rated Vietnam's three biggest cities promotions: Gen Alpha is
more meals at home to save establishments. - Hanoi, Da Nang and Ho Chi sensitive to promotions,
compared to frequent fast Minh City - by Decision Lab
food purchases. Value for Money: showed that Vietnam's incentives, and attractive
Millennials are willing to Generation Z, which accounts fast food combos.
Additional factors: pay for restaurant food for 15% of a population of
that offers good value, roughly 93 million, spend on
Disposable income: Gen balancing quality and cost. average VND 892,443 ($40)
X's disposable income will They appreciate discounts, a month eating out. The
influence their willingness deals, and promotions but market research group polled
to spend on fast food. are also willing to spend 6,000 respondents from the
Urban vs. rural divide: more for exceptional age bracket in Hanoi, Da
Those in urban areas with experiences. Nang and Saigon. The results
more fast food options show that while 56% of those
might be willing to spend Quality and Freshness: surveyed earn no money or
more compared to rural They prioritize fresh, make less than VND 3
areas. high-quality ingredients million ($132) per month,
and are willing to pay a they still prioritize eating at
premium for meals that street food stalls and
meet these standards. This restaurants over meals at
is particularly true for home. This behavior is
restaurants that offer increasingly commonplace.
organic, locally-sourced, In Q3 of 2022, individuals in
or sustainably-produced this age group went out an
options. average of 91 times, while in
Q3 of 2023 that figure was
133. This increase expanded
the group's overall market
 contribution from 14% to
19%.
Unlike the previous
generations who had their
meals at home and at a fixed
time, the new generation uses
food services outside their
homes at any time, the
research found. Interestingly,
this internet-savvy generation
say they tend to trust
recommendations from
reviewers on social platform
such as Instagram, Tiktok,
and are much more interested
in advice from their families
to make their choice on
where to eat out.

Frequency of Overall, they consume fast Millennials particularly It can be seen in the pie chart Frequent consumption:
product use food less frequently than reflect these global trends, above that Gen Z who Due to convenience,
younger generations. Their dining out frequently due consume fastfood more than attractive flavor and
focus on value, health, to the increasing once a week takes up to influence from external
traditional food preferences, availability of diverse and 75.8% with 11.1% of them factors, Gen Alpha tends
and social dining habits all convenient dining options have fastfood everyday. Also, to use fast food more
contribute to a more in cities like Ho Chi Minh according to the Decision Lab
3. Suggestions for the producers and marketers
- Gen X:
This generation has preference for Group Dining: Gen X enjoy dining out in a fun and upbeat atmosphere that is
conducive to social gatherings. So marketers can focus on promoting restaurants as ideal places for group dining
experiences. In addition, as Gen X are in the mid-life phase and are balancing work and family life, marketers can
also Highlight menu options and restaurant settings that cater to families and friends.
- Gen Y:
+ This generation values social issues and ethical products so marketers can focus on offering organic, ethically
produced items can attract Millennials to fast-food establishments.
- Gen Z:
+ Gen Z is quick to try new trends and have a high awareness of emerging flavors and cuisines. Marketers
should focus on unique flavors and experiences to capture their attention. And also Gen Z appreciates
locally sourced ingredients and diverse culinary experiences. Marketers can highlight menu items with local
ingredients can appeal to this generation.
- Gen Alpha:
+ While Gen Y and Gen Z often learn mostly from books, Gen Alpha uses technological devices and receives
information in many different formats, especially videos. Besides, video games are also one of the factors that
contribute to helping children of this generation improve their visual skills, improve hand-eye coordination,
change flexibility, and have the ability to handle many different tasks. Marketers can focus on building quality,
eye-catching images to attract alpha customers. Besides, TikTok has been one of the leading social networking
 platforms for young people, voted by many as their favorite app of 2022. Gen Alpha is attracted to infectious
sounds Shine high and inspire content. Therefore, brands should consider testing sound in short video content
and taking advantage of the TikTok platform's algorithm to reach and attract the Gen Alpha customer group.

4. References
4.1. English Reference
- Determinants Impacting Consumers’ Purchase Intention: The Case of Fast Food in Vietnam (Phan The Anh,
Phuong Hoang Mai).
- Martin Rama, 2018, Fast food and its invasion of Vietnam's culinary paradise.
- Hiezle Bual, 2022, The Pandemic Has Motivated Vietnamese To Eat Healthy, But Some Factors Are Holding
Them Back.
- Staff reporters, 2017, Vietnam's Generation Z may not make much money, but they have a weakness for eating
out.
- Saigoneer, 2017, Vietnam's Generation Z Earns Little, but Loves Eating Out: Report.
- Wahyuningsih, Nasution, H., Yeni, Y. H., & Roostika, R. (2022). A comparative study of generations X, Y, Z
in food purchasing behavior: the relationships among customer value, satisfaction, and Ewom. Cogent
Business & Management

4.2. Vietnamese Reference

- Trịnh Đức Tuấn, 2023, 3 Lưu ý Quan Trọng Khi Làm Marketing Cho Gen Alpha (Thế hệ Alpha).
- Thảo Vy, 2023, Những điều cần biết về Gen Alpha: Thế hệ tiếp nối Gen Z trở thành đối tượng khách hàng
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