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Operational Risk Management In The Restaurant Industry – A Case Study Of The Largest Restaurant Chain In Vietnam

In: Proceedings of the International Conference on Emerging Challenges: Sustainable Strategies in the Data-Driven Economy (ICECH 2024)

Author

Listed:
  • Chi Minh Tang

    (Vietnam National University, Faculty of Economics and Management, International School)

  • Thi Minh Ngoc Luu

    (Vietnam National University, Faculty of Economics and Management, International School)

Abstract

Research purpose: This comprehensive study analyzes the current risk state within the largest restaurant chain in Vietnam. Identified risks in the restaurant chain include process execution, food safety, labor safety, financial management, restaurant reputation, tangible asset loss, system failures, and internal fraud. Research motivation: The critical need for effective risk management strategies within the largest restaurant chain in Vietnam, driven by the industry’s heightened vulnerability to risks such as food safety, operational inefficiencies, and financial instability. By exploring the root causes of various risks and proposing advanced management strategies, the research aspires to contribute significantly to enhancing the risk management capabilities of the Vietnamese restaurant industry, thereby safeguarding its long-term viability and competitiveness. Research design, approach, and method: The author employs a mixed-method approach, combining quantitative data from the investigation and survey of risk events throughout 2023 with qualitative analysis to explore the root causes of these risks. Main findings: The results indicate that risks are primarily concentrated in three main groups: food safety, process execution, and workplace safety. Furthermore, the study reveals differences in risk distribution between restaurant chains in Vietnam’s Northern and Southern regions. Risk events are also more prevalent in major cuisines which are BBQ, Hotpot and Others, particularly in Hanoi and Ho Chi Minh City. The study also highlights that inconsistencies in employee training, insufficient supervision, and the underutilization of modern management technologies contribute to operational challenges. Practical/managerial implications: The research underscores the necessity of adopting advanced risk management strategies, including integrating artificial intelligence (AI) and blockchain and incorporating ESG criteria into risk management to enhance risk detection, improve transparency, and strengthen brand reputation.

Suggested Citation

  • Chi Minh Tang & Thi Minh Ngoc Luu, 2025. "Operational Risk Management In The Restaurant Industry – A Case Study Of The Largest Restaurant Chain In Vietnam," Advances in Economics, Business and Management Research, in: Dinh Nguyen Van & Nguyen Nguyen Danh & Ngoc Luu Thi Minh & Mai Nguyen Phuong (ed.), Proceedings of the International Conference on Emerging Challenges: Sustainable Strategies in the Data-Driven Economy (ICECH 2024), pages 196-203, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-694-9_13
    DOI: 10.2991/978-94-6463-694-9_13
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