• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Fast-Food Growth Healthy: Group Will Open 63 Outlets By New Year

Posted on: Tuesday, 16 August 2005, 00:00 CDT

Aug. 16--Economic uncertainties notwithstanding, the Central Restaurants Group (CRG), an affiliate of Central Plaza Hotel, plans to invest 400 million baht to expand its fast-food chains this year.

An additional 63 outlets will be opened, a 50 percent increase from the total number of new openings last year, said Thiradej Chirathivat, newly appointed senior executive vice-president of Central Plaza Hotel Plc, the parent firm of CRG.

Of the new outlets, 24 would be Auntie Anne's, 21 Mister Donut, 10 KFC, six Baskin-Robbins and two Pizza Hut. The move will bring the total number of Central food outlets to 437 this year, up from 374 last year. An additional 60 branches are planned for next year.

"The food business has not been affected by high energy prices. On the contrary, we benefit from a change in consumer behaviour from restaurant dining to fast food. Therefore, we have planned to invest 50-70 million baht more," said Mr Thiradej.

Average sales of Central fast-food businesses in the first six months of the year grew by 20 percent to around two billion baht, compared to 12 percent growth in 2004. Same-store sales grew by 17 percent, compared to 5 percent projected earlier.

In comparison, Thailand's quick-serve restaurant market, estimated at 13 billion baht in the first half of this year, grew by 15 percent.

To capitalise on the rising sales momentum, the company plans new menus at Auntie Anne's and Mister Donut. It will also introduce a new Baskin Robbins concept next year to attract first-jobbers and students.

"The image of Baskin Robbins will be upgraded to differentiate itself from competitors," said Mr Thiradej. The company would also introduce Baskin Robbins take-home products at supermarkets in the near future.

Another executive said the company would focus more on new stand-alone Baskin Robbins shops due to space limitations at retail complexes. An outlet in Thong Lo will be the prototype for the new stores.

The 15-year-old company has recently adjusted its look to fit the "store of the future" concept to appeal to consumers. All Baskin Robbins shops will be renovated to reflect the new concept by 2010.

The company expects sales of 300 million baht from the ice-cream business by the end of this year, up 15 percent from the same period last year.

"Within the next three years, at least three quick-serve restaurant chains in both Thai and foreign styles will be introduced -- snacks, curry-topped rice, and bakery. Our new fast-food concepts will be geared toward health-conscious customers."

Apart from the outlet expansion, the company will also improve its logistics in the next two months to cope with higher operating costs, resulting from the high oil prices.

Total sales of CRG fast-food restaurants were 3.2 billion baht, with a net profit of 183 million baht. In 2005, it expects sales to reach four billion baht.

Shares of Centel closed yesterday on the SET at 26 baht, unchanged.

-----

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2005, Bangkok Post, Thailand

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

Source: Bangkok Post

More News in this Category