Brand Imitation and Copycat Practices in the F&B Industry

Trends
17/07/2024
“Riding the wave” of a popular food trend or a unique business model can be a good way to boost revenue. But blindly copying another brand is a completely different story. It not only damages reputation but can also lead to legal consequences and strong backlash from customers and the community.

1. From well-known brands that have been imitated

Not long ago, a shop in Hai Phong called Pha Lê suddenly went viral on social media because its name, logo, and store design looked… oddly familiar. Many quickly recognized that the visuals were nearly identical to the signature branding of the popular tea chain Phê La. Only a few days later, the signboard was quietly taken down. Many speculated whether it had to do with copyright or trademark violations.
The “Pha Le” tea shop has a name, logo, and color scheme very similar to the original Phe La.
This is far from an isolated case, especially in the F&B sector. Countless well-known brands have had their business concepts copied, such as Cộng Cà Phê, Mixue, Highland, and more. With distinctive brand colors and logos altered only slightly, copycat versions often make it difficult for customers to differentiate real from fake.
Reactions vary widely. Well-established brands with strong customer loyalty often stay silent and focus on improving their products and business operations. Over time, as customers become disappointed with low-quality imitations, they naturally stop supporting them.

However, many cases escalate into legal disputes and claims for damages.

Around 2018–2019, when the retro subsidy-era concept of Cộng Cà Phê became a nationwide phenomenon, countless cafés emerged with similar décor, logos, and even operational styles. At the time, Cộng Cà Phê stated they were taking serious action against stores infringing on their brand rights by surveying the market, working with violators, and filing complaints with the Intellectual Property Office. They committed to protecting their brand long-term.

A coffee shop was once criticized for plagiarizing the concept of Cong Cafe.

2. Consequences shop owners never expect

The first victims of brand imitation are, of course, the original businesses. Their reputation takes a hit, and customers may misunderstand the system, product quality, or service standards when their experience at a copycat shop is inconsistent—leading to loss of trust and goodwill. The damage extends beyond customers and can affect business partners and franchisees as well.

For those who choose to copy a brand concept, there may be short-term benefits: attracting curious foot traffic, drawing customers who mistake them for the “real” brand, saving costs on branding and marketing, or leveraging the original brand’s popularity.
But the long-term consequences can be severe.

Legal trouble

Not all original brands choose to stay silent. Trademark ownership is a highly sensitive issue that directly impacts long-term business. Legal disputes and compensation claims are common. Beyond reputational damage, offenders may also face large financial penalties—and their future business ventures may be affected.

Customer backlash

Once customers discover the shop’s unethical behavior, backlash is inevitable. Today’s consumers are more aware of branding and service quality. Many feel deceived when they spend money thinking they are buying from an original brand, only to discover it is an imitation. Such shops are easily added to customers’ “blacklists” and quickly pushed out of the market—especially in the age of social media where negative reviews spread rapidly.
Mixue is also a brand that is frequently counterfeited in the market.

Loss of credibility for future ventures

Many copycat shops have had to close after waves of customer outrage. Some owners try to rebrand, change their business model, or start over entirely. But the stain of past imitation makes it difficult for customers to trust or accept any new venture from them.
Read More

How to register a restaurant or cafe trademark from A-Z
What to do when a competitor steals your business idea?

3. What should a brand do when it's an insider?

For those who have been plagiarized:

Immediately after deciding to do business with a new brand, the first thing restaurant owners need to do is: register the brand, create a clear visual identity, and design a consistent concept across all franchise locations… so that customers can easily recognize the brand and also be legally protected in case of any copyright disputes. Additionally, when there are copycat competitors, it's necessary to clarify the legal aspects, file a lawsuit if the copying goes too far, handle the situation gently, and avoid causing a media crisis.
Phê La's move was quite “gentle” but enough to warn off dirty competitors.

For those about to open a business

If you're planning to open a business, my advice to you if you want to go the distance and expand in the future is to invest your intellectual capital in your store, from the brand to the products.
Another important thing is to carefully research whether your ideas overlap with any existing ones. Absolutely avoid copying or unintentionally resembling previous businesses, as this can lead to unnecessary misunderstandings.
After finalizing the above steps, go to the relevant authorities to register the trademark for your store.
Don't skip the trademark registration step when doing F&B business.
In conclusion: The copying of ideas doesn't seem to be slowing down, especially as large chains are successfully implementing their models, making it the envy of those who want to get rich quickly but are too lazy to invest their intellectual capital. Brand copyright protection needs to be tightened in the coming time. At the same time, from the customer's perspective – those who directly use the service – it's important to be vigilant when dining out and strongly boycott establishments that engage in plagiarism in their business practices.