Coffee chains lose ground as international fast food gains favour

According to food and beverages (F&B) research firm Decision Lab's 'Best F&B Rankings 2026' report released in late May, many companies, including some leading coffee chains, are losing favour with consumers.

The rankings show that KFC retained its position as Vietnam’s top F&B brand for the fourth consecutive year, with a Brand Health Index score of 27.1 points, up 0.6 points from the previous year. Jollibee ranked second with 23.6 points, recording the strongest growth among all brands in 2026 with an increase of 6.3 points.

The picture was markedly different for coffee and beverage brands. Highlands Coffee remained in third place, but its Index score fell from 22.6 to 21.4 points, a decline of 1.2 points. Trung Nguyen Legend also lost ground, dropping from 19.9 to 18 points, down 1.9 points year-on-year.

Phuc Long Coffee & Tea and The Coffee House recorded the steepest declines among coffee brands, each losing 2.3 points. Starbucks fell by 1.2 points, from 12.6 to 11.4 points. All five coffee brands featured in the top 10 recorded lower scores this year.

By contrast, quick-service restaurant brands demonstrated greater resilience. In addition to gains by KFC and Jollibee, McDonald’s increased its score by 0.3 points. Lotteria slipped slightly by 0.3 points but maintained its fifth-place ranking.

According to Decision Lab, the findings suggest consumers are becoming increasingly demanding of beverage-focused chains. Brand awareness and familiarity alone are no longer sufficient to sustain a competitive advantage. Instead, product quality, perceived value, service experience and differentiation are emerging as the key factors shaping customer loyalty.

The report also highlights growing polarisation in Vietnam’s F&B market. Seven of the 10 brands in this year’s ranking posted lower scores than a year earlier. Meanwhile, the gap between the top-ranked brand and the brand in 10th place widened from 13.9 points in 2025 to 16.8 points in 2026, reflecting an increasingly pronounced divide between market leaders and the rest of the industry.

Thue Quist Thomassen, CEO of Decision Lab, said brand health is more than a marketing metric; it reflects the strength of a company’s relationship with consumers through factors such as quality, value, customer experience and reputation.

“Consumers do not evaluate brands through a single lens. They assess them across multiple touchpoints, from pricing, quality and service to overall experience and reputation, before deciding whether to remain loyal and recommend the brand to others,” he said.

According to Thomassen, brand health serves as a critical management compass for F&B businesses. The metric helps companies understand whether consumer perceptions and market positioning are strengthening, weakening or becoming more vulnerable over time.

The rankings were compiled using online survey data from YouGov Vietnam, collected between March 2025 and February this year from respondents aged 18 and above.

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