This study conducted case study research about Lotteria, a leading Korean franchised quick-service restaurant firm in Vietnam from the perspective of dynamic capabilities. Lotteria entered Vietnam in 2004 and currently holds the largest market share of quick service restaurant in Vietnam. The concept of “dynamic capability” proves valuable in understanding Lotteria’s strategic approach, as the firm has effectively adjusted its strategies in response to the external environmental changes and emerge as a market leader. Dynamic Capabilities can be subdivided as three capacities - sensing, seizing and reconfiguration, which are analyzed in relation to Lotteria’s 20-year history in Vietnam, encompassing three distinct periods: the initial phase, the middle phase, and the post-Covid-19 crisis. During the initial phase, Lotteria entered Vietnam at a time when franchising was unfamiliar there, and it actively benchmarked leading companies, expanded through partnerships with supermarket chains, and adapted to the local market independently from the headquarters of Korea. This approach led to the establishment of 100 stores. In the middle phase, Lotteria pursued an aggressive market expansion strategy by opening franchises and enhance brand recognition by investing in corporate social responsibility. As a result, it achieved the top market share in Vietnam’s quick-servie restaurant franchise industry. Despite experiencing a decline in performance due to the city shutdown during the Covid-19 pandemic, Lotteria managed to achieve a turnaround by restructuring stores and the organization. The transformation of Lotteria Vietnam from a follower to a market leader holds significant implications for domestic restaurant firms planning to enter emerging economies.