Cambodia - Fast Food and Beverage FranchisesCambodia - Fast Food & Beverage
Overview
Cambodia’s growing urban middle class, supplemented by a significant expatriate community, increasingly frequents restaurant franchises. A few local “mom and pop” eateries emulating U.S.-style fast food restaurants are popular and busy, such as doughnut and hamburger establishments. In 2005, Thailand’s The Pizza Company opened the first international-standard pizza business in Cambodia, and the company has done well. In 2008, Swensen’s and KFC opened their first outlets, and both are expanding throughout the country. Dairy Queen and Burger King have also entered the Cambodian market. The Hard Rock Cafe opened a franchise in Siem Reap in 2014 and in Phnom Penh in December 2017. In 2015, Domino’s Pizza and Starbucks coffee opened franchises in Phnom Penh. Krispy Kreme Doughnut launched its first shop in Phnom Penh in May 2016. Carls’ Jr and Cold Stone Creamery opened outlets in Phnom Penh in 2016. Franchises of Circle K and ChemDry cleaning service entered Cambodian market in 2018. Other foreign food and restaurant franchises present in Cambodia are from Singapore, Taiwan, Korea, Thailand and Australia.
Sub-Sector Best Prospects
Major American soft-drink companies have bottling plants in Phnom Penh. Cambodia’s air and land links to Thailand and Vietnam make it easy for local restaurants to secure adequate supplies of fresh ingredients that meet Western standards, and the government offers generous investment incentives in the agricultural sector, which would potentially be available to any franchise interested in local production.
Opportunities
Significant opportunities exist in the range of fast food/drink options from hamburgers to coffee shops to mid-range restaurant franchise chains. There may also be market potential for establishments that offer casual sit-down dining in Phnom Penh.
Web Resources
The Cambodia Restaurant Association
Lucky Market Group
Imports of Food and Beverage |
2014 |
2015 |
2016 |
Food and ingredients |
171,881 |
213,137 |
262,542 |
Beverages |
93,325 |
181,749 |
181,431 |
Exchange Rate: 1 USD |
4,000 riel |
4,000 riel |
4,000 riel |
Unit: USD thousands
Data Source: Ministry of Economy and Finance