Hong Kong/ Singapore, August 19, 2009 ¡V Deutsche Bank today announced that in line with the strategic expansion of its Global Transaction Banking franchise in Asia, it has made the following
appointments:
Shivkumar Seerapu - Global Product Head of Financial Supply Chain and Regional Trade
Product Head for Asia
Eric Koo - Head of Global Transaction Banking, Hong Kong
Mrugank Paranjape ¡V Head of Domestic Custody Services, South & South East Asia
Ridzal Sheriff - Head of Global Transaction Banking, Malaysia
Jacqueline William - Chief Executive Officer of Deutsche Trustee Malaysia Berhard (DTMB)
Shivkumar Seerapu, currently the Regional Product Head for Trade Finance, Asia Pacific,
Deutsche Bank, has taken on the additional role as the Global Product Head of Financial Supply
Chain. He will continue to be based in Singapore.
Based in Hong Kong, as Head of Global Transaction Banking, Hong Kong, Eric Koo will be
responsible for spearheading Deutsche Bank¡¦s transaction banking strategies and aligning its
business plans with the region¡¦s priorities. Eric joined Deutsche Bank in 2006 as Head of Trade
Finance and Cash Management Corporates in Hong Kong where he has successfully built a
strong team focused on acquiring high quality clients and capturing trade flows across Greater
China whilst positioning Deutsche Bank as a strategic partner for regional treasury centres in Hong
Kong.
Mrugank Paranjape, Head of Domestic Custody Services, India, will now assume additional
responsibilities as Head of Domestic Custody Services, South & South East Asia with immediate
effect. The countries under Mrugank¡¦s remit are India, Indonesia, Malaysia, Pakistan, Singapore,
Sri Lanka, Thailand and Vietnam. Mrugank will continue to be based in Mumbai.
Ridzal Sheriff, currently the Chief Executive Officer of DTMB will succeed Rojeanne Sen as Head
of Global Transaction Banking and Domestic Custody Services for Deutsche Bank in Malaysia.
Rojeanne Sen, who has been with Deutsche Bank for 15 years will be retiring in November 2009.
Ridzal joined Deutsche Bank in 2007. In his new appointment, Ridzal will focus on growing the
Bank¡¦s transaction banking franchise in Malaysia through quality client acquisitions and targeted
market expansion. He will be based in Malaysia.
Jacqueline William, previously the Head of Client Services for Deutsche Bank¡¦s Domestic Custody Services business in Malaysia will succeed Ridzal as the Chief Executive Officer of DTMB. In her new role, Jacqueline will continue to drive strategy and grow the DTMB franchise.
Thomas DuCharme, Regional Head of Global Transaction Banking, Asia ex-Japan, Deutsche
Bank, said, ¡§We are convinced Asia will represent disproportionate amount of growth in trade
finance, cash management and custody in the coming years, so are very pleased to position our
high calibre talent to capture this next phase of growth in the region.
Friday, November 20, 2009
Wednesday, November 4, 2009
Index revives plan for India franchise
Index Living Mall Co, the Thai homefurnishing retail chain, is reviving its plan to open franchise stores in India after its first deal two years ago did not get through.
Jarinthorn Patamasatayasonthi, the company's managing director, said the business plan was reviewed after it was contacted by a new Indian investor,who had visited Index Living Mall in Dubai recently.
"We saw a huge opportunity in the Indian market because there are only conventional furniture stores available in the country. While the Indian economy is booming, there is less competition [in the segment] there," she said.
Index was in talks with another Indian investor in 2006 but the deal could not be concluded.
Verachai Kunavichayanont, vicechairman of the furniture club under the Federation of Thai Industries, said demand for Thai-made furniture in India gradually rises every year because products are cheaper than comparable designs from Western brands.
Thai furniture will enjoy an even greater competitive advantage after the free trade area agreement between Thailand and India takes effect next year. Under the FTA, the import tariff on furniture to India will be gradually cut to between zero and 5%, down from 35-40% at present, he said.
Currently, few Asian furniture brands are available in India, leaving Thai brands with much room and potential to expand their businesses.
As well as in India, the company is conducting a feasibility study to open new outlets through the franchise system in the Middle East, said Ms Jarinthorn.
At home, the company plans to spend 1 billion baht to open two more outlets in Bangkok next year in addition to the Bang Na branch, which is to be opened early next year under an earlier plan.
Moreover, the company plans to renovate its existing stores and to adjust product displays.
More designers will be hired to design home decorative items and furniture while the number of exclusive items available at its stores will be increased to 50% from 30% at present.These plans should help Index Living Mall differentiate itself from its rivals.
The company expects its sales to reach 7.5 billion baht this year. Of the total, about 2 billion baht will come from exports. Sales of Index in the first 10 months grew by 8%, slightly below its earlier projection of 10%. Business from Dubai has provided much of the company's sales.
Jarinthorn Patamasatayasonthi, the company's managing director, said the business plan was reviewed after it was contacted by a new Indian investor,who had visited Index Living Mall in Dubai recently.
"We saw a huge opportunity in the Indian market because there are only conventional furniture stores available in the country. While the Indian economy is booming, there is less competition [in the segment] there," she said.
Index was in talks with another Indian investor in 2006 but the deal could not be concluded.
Verachai Kunavichayanont, vicechairman of the furniture club under the Federation of Thai Industries, said demand for Thai-made furniture in India gradually rises every year because products are cheaper than comparable designs from Western brands.
Thai furniture will enjoy an even greater competitive advantage after the free trade area agreement between Thailand and India takes effect next year. Under the FTA, the import tariff on furniture to India will be gradually cut to between zero and 5%, down from 35-40% at present, he said.
Currently, few Asian furniture brands are available in India, leaving Thai brands with much room and potential to expand their businesses.
As well as in India, the company is conducting a feasibility study to open new outlets through the franchise system in the Middle East, said Ms Jarinthorn.
At home, the company plans to spend 1 billion baht to open two more outlets in Bangkok next year in addition to the Bang Na branch, which is to be opened early next year under an earlier plan.
Moreover, the company plans to renovate its existing stores and to adjust product displays.
More designers will be hired to design home decorative items and furniture while the number of exclusive items available at its stores will be increased to 50% from 30% at present.These plans should help Index Living Mall differentiate itself from its rivals.
The company expects its sales to reach 7.5 billion baht this year. Of the total, about 2 billion baht will come from exports. Sales of Index in the first 10 months grew by 8%, slightly below its earlier projection of 10%. Business from Dubai has provided much of the company's sales.
Wednesday, October 28, 2009
Irish sandwich chain faces liquidation
O'Brien's Sandwich Bars, a major success story of Ireland's dead Celtic Tiger economy, was handed over to liquidators on Wednesday after a judge declined to set aside the chain's expensive Dublin leases on more than 80 franchises.
Dublin-born O'Brien's was Ireland's answer to Starbucks. It spread across much of the globe over the past decade of unprecedented Irish ambition, reaching more than a dozen countries, including Australia, China, India, Indonesia and Saudi Arabia.
But like many pub and restaurant groups in Ireland, O'Brien's has struggled with crippling debts ever since the economy plummeted into deep recession over the past year. The company's British unit sought protection from creditors in June, followed a month later by its Irish parent, which employs 800.
O'Brien's founder, Brody Sweeney,had hoped to sell his business to an investor group led by Graeme Beere,owner of several rival fast-food chains in Ireland, including Abrekebabra and Gourmet Burger. But Beere's consortium had insisted that O'Brien's transfer ownership of its property leases over to franchise operators, who objected that they couldn't afford them either.
Beere withdrew his offer on Tuesday after a Dublin High Court judge, John MacMenamin, ruled that he couldn't set aside the leases.
It's only the latest in a series of spectacular implosions for top Dublin restaurateurs and publicans, who are struggling to make debt payments following rapid Celtic Tiger expansions on cheap credit that's evaporated. Other recent casualties are the Thomas Read Group,which owned more than a dozen of Dublin's most popular and architecturally impressive pubs, and Michelin-starred restaurants, Mint.
Dublin-born O'Brien's was Ireland's answer to Starbucks. It spread across much of the globe over the past decade of unprecedented Irish ambition, reaching more than a dozen countries, including Australia, China, India, Indonesia and Saudi Arabia.
But like many pub and restaurant groups in Ireland, O'Brien's has struggled with crippling debts ever since the economy plummeted into deep recession over the past year. The company's British unit sought protection from creditors in June, followed a month later by its Irish parent, which employs 800.
O'Brien's founder, Brody Sweeney,had hoped to sell his business to an investor group led by Graeme Beere,owner of several rival fast-food chains in Ireland, including Abrekebabra and Gourmet Burger. But Beere's consortium had insisted that O'Brien's transfer ownership of its property leases over to franchise operators, who objected that they couldn't afford them either.
Beere withdrew his offer on Tuesday after a Dublin High Court judge, John MacMenamin, ruled that he couldn't set aside the leases.
It's only the latest in a series of spectacular implosions for top Dublin restaurateurs and publicans, who are struggling to make debt payments following rapid Celtic Tiger expansions on cheap credit that's evaporated. Other recent casualties are the Thomas Read Group,which owned more than a dozen of Dublin's most popular and architecturally impressive pubs, and Michelin-starred restaurants, Mint.
Magnificent seven
In the most important, most revered event since the invention of the brontosaurus trap,Microsoft shipped the most incredibly fabulous operating system ever made; the release of Windows 7 also spurred a new generation of personal computers of all sizes at prices well below last month's offers.The top reason Windows 7 does not suck: There is no registered website called Windows7Sucks.com
Kindle e-book reader maker Amazon.com and new Nook e-book reader vendor Barnes and Noble got it on; B&N got great reviews for the "Kindle killer"Nook, with dual screens and touch controls so you can "turn" pages, plays MP3s and allows many non-B&N book formats, although not the Kindle one;Amazon then killed the US version of its Kindle in favour of the international one, reduced its price to $260(8,700 baht), same as the Nook; it's not yet clear what you can get in Thailand with a Nook, but you sure can't (yet) get much, relatively speaking, with a Kindle;but here's the biggest difference so far,which Amazon.com has ignored: the Nook lets you lend e-books to any other Nook owner, just as if they were paper books; the borrowed books expire on the borrower's Nook in two weeks.
Phone maker Nokia of Finland announced it is suing iPhone maker Apple of America for being a copycat; lawyers said they figure Nokia can get at least one, probably two per cent (retail) for every iPhone sold by Steve "President for Life" Jobs and crew via the lawsuit,which sure beats working for it -$6 (200 baht) to $12(400 baht) on 30 million phones sold so far, works out to $400 million or 25 percent of the whole Apple empire profits during the last quarter;there were 10 patent thefts, the Finnish executives said, on everything from moving data to security and encryption.
Nokia of Finland announced that it is one month behind on shipping its new flagship N900 phone, the first to run on Linux software; delay of the $750(25,000 baht) phone had absolutely no part in making Nokia so short that it had to sue Apple, slap yourself for such a thought.
Tim Berners-Lee, who created the World Wide Web, said he had one regret:the double slash that follows the "http:"in standard web addresses; he estimated that 14.2 gazillion users have wasted 48.72 bazillion hours typing those two keystrokes, and he's sorry; of course there's no reason to ever type that, since your browser does it for you when you type "www.bangkokpost.com" but Tim needs to admit he made one error in his lifetime.
The International Telecommunication Union of the United Nations, which doesn't sell any phones or services, announced that there should be a mobile phone charger that will work with any phone; now who would ever have thought of that, without a UN body to wind up a major study on the subject?;the GSM Association estimates that 51,000 tonnes of chargers are made each year in order to keep companies able to have their own unique ones.
The Well, Doh Award of the Week was presented at arm's length to the United Nations Conference on Trade and Development; the group's deputy secretary-general Petko Draganov said that developing countries will miss some of the stuff available on the Internet if they don't install more broadband infrastructure; a report that used your tax baht to compile said that quite a few people use mobile phones but companies are more likely to invest in countries with excellent broadband connections; no one ever had thought of this before, right?
Sun Microsystems , as a result of the Oracle takeover, said it will allow 3,000 current workers never to bother coming to work again; Sun referred to the losses as "jobs," not people; now the fourth largest server maker in the world, Sun said it lost $2.2 billion in its last fiscal year; European regulators are holding up approval of the Oracle purchase in the hope of getting some money in exchange for not involving Oracle in court cases.
The multi-gazillionaire and very annoying investor Carl Icahn resigned from the board at Yahoo ; he spun it as a vote of confidence, saying current directors are taking the formerly threatened company seriously; Yahoo reported increased profits but smaller revenues in the third quarter.
The US House of Representatives voted to censure Vietnam for jailing bloggers; the non-binding resolution sponsored by southern California congresswoman Loretta Sanchez said the Internet is "a crucial tool for the citizens of Vietnam to be able to exercise their freedom of expression and association;"Hanoi has recently jailed at least nine activists for up to six years apiece for holding pro-democracy banners. Iran jailed blogger Hossein "Hoder" Derakshan for 10 months - in solitary confinement.
Kindle e-book reader maker Amazon.com and new Nook e-book reader vendor Barnes and Noble got it on; B&N got great reviews for the "Kindle killer"Nook, with dual screens and touch controls so you can "turn" pages, plays MP3s and allows many non-B&N book formats, although not the Kindle one;Amazon then killed the US version of its Kindle in favour of the international one, reduced its price to $260(8,700 baht), same as the Nook; it's not yet clear what you can get in Thailand with a Nook, but you sure can't (yet) get much, relatively speaking, with a Kindle;but here's the biggest difference so far,which Amazon.com has ignored: the Nook lets you lend e-books to any other Nook owner, just as if they were paper books; the borrowed books expire on the borrower's Nook in two weeks.
Phone maker Nokia of Finland announced it is suing iPhone maker Apple of America for being a copycat; lawyers said they figure Nokia can get at least one, probably two per cent (retail) for every iPhone sold by Steve "President for Life" Jobs and crew via the lawsuit,which sure beats working for it -$6 (200 baht) to $12(400 baht) on 30 million phones sold so far, works out to $400 million or 25 percent of the whole Apple empire profits during the last quarter;there were 10 patent thefts, the Finnish executives said, on everything from moving data to security and encryption.
Nokia of Finland announced that it is one month behind on shipping its new flagship N900 phone, the first to run on Linux software; delay of the $750(25,000 baht) phone had absolutely no part in making Nokia so short that it had to sue Apple, slap yourself for such a thought.
Tim Berners-Lee, who created the World Wide Web, said he had one regret:the double slash that follows the "http:"in standard web addresses; he estimated that 14.2 gazillion users have wasted 48.72 bazillion hours typing those two keystrokes, and he's sorry; of course there's no reason to ever type that, since your browser does it for you when you type "www.bangkokpost.com" but Tim needs to admit he made one error in his lifetime.
The International Telecommunication Union of the United Nations, which doesn't sell any phones or services, announced that there should be a mobile phone charger that will work with any phone; now who would ever have thought of that, without a UN body to wind up a major study on the subject?;the GSM Association estimates that 51,000 tonnes of chargers are made each year in order to keep companies able to have their own unique ones.
The Well, Doh Award of the Week was presented at arm's length to the United Nations Conference on Trade and Development; the group's deputy secretary-general Petko Draganov said that developing countries will miss some of the stuff available on the Internet if they don't install more broadband infrastructure; a report that used your tax baht to compile said that quite a few people use mobile phones but companies are more likely to invest in countries with excellent broadband connections; no one ever had thought of this before, right?
Sun Microsystems , as a result of the Oracle takeover, said it will allow 3,000 current workers never to bother coming to work again; Sun referred to the losses as "jobs," not people; now the fourth largest server maker in the world, Sun said it lost $2.2 billion in its last fiscal year; European regulators are holding up approval of the Oracle purchase in the hope of getting some money in exchange for not involving Oracle in court cases.
The multi-gazillionaire and very annoying investor Carl Icahn resigned from the board at Yahoo ; he spun it as a vote of confidence, saying current directors are taking the formerly threatened company seriously; Yahoo reported increased profits but smaller revenues in the third quarter.
The US House of Representatives voted to censure Vietnam for jailing bloggers; the non-binding resolution sponsored by southern California congresswoman Loretta Sanchez said the Internet is "a crucial tool for the citizens of Vietnam to be able to exercise their freedom of expression and association;"Hanoi has recently jailed at least nine activists for up to six years apiece for holding pro-democracy banners. Iran jailed blogger Hossein "Hoder" Derakshan for 10 months - in solitary confinement.
Wednesday, October 14, 2009
Minor to take The Pizza Company, Swensen's to more provinces
The Minor Food Group, the leading operator of quick-service and fast-casual restaurants, will expand its core brands - The Pizza Company and Swensen's - into third-tier provinces through franchising.
The company claims 100-per-cent coverage of first- and second-tier provinces, which have populations of more than 1 million and between 500,000 and 1 million, respectively.
Arth Prakhunhungsit, general manager-franchising, said the company would open 10 new franchised restaurants each for The Pizza Company and Swensen's focusing on third-tier provinces, which have a population of less than 500,000. These include Nakhon Phanom, Yasothon, Kalasin, Mae Hong Son, Tak, Kamphaeng Phet, Trat, Satun, Phang Nga and Narathiwat.
"With franchising, we are able to expand our flagship restaurant brands more aggressively, especially in second- and third-tier provinces," said Arth.
He added that the company had reduced the investment cost for its franchisees opening restaurants by 15 per cent on average by simplifying store designs and fixtures.
The initial cost for opening each The Pizza Company outlet through franchising is about Bt10.5 million, and about Bt6 million for each Swensen's restaurant. Each store occupies an average space of between 180 and 200 square metres.
He said the company also required local entrepreneurs to have knowledge and skills in their own communities.
"We have a strong management system, which can be applied and implemented immediately by our franchisees," he added.
Arth said the company started franchising The Pizza Company brand in 2002, while franchising of Swensen's began in 2004.
Minor Food Group operates 203 The Pizza Company restaurants in Thailand, 49 of which are franchised outlets.
The company also has 39 The Pizza Company restaurants in many markets abroad, including China, Dubai, Saudi Arabia, Jordan, Bahrain and Cambodia. About 14 of these outlets, mainly in China, are the company's own.
Arth said the company had 216 Swensen's restaurants in Thailand, of which 102 are franchises. It also has six franchised Swensen's in Dubai, Saudi Arabia and Cambodia.
"We plan to open new franchised outlets for both The Pizza Company and Swensen's in Laos in December, and early next year in Vietnam and India," said Arth.
He said all franchisees would run their restaurants under 10-year contracts. The payback period will be about four years.
Minor Food Group yesterday announced 24-per-cent growth in year-to-date sales by The Pizza Company franchised restaurants. The corresponding growth for Swensen's franchised outlets is 38 per cent from the same period last year.
Average same-store growth for both The Pizza Company and Swensen's in the first nine months of the year came in at 2 per cent. This represents an improvement on the 1-per-cent average posted last year.
"We expect our franchised outlets, both The Pizza Company and Swensen's, to generate combined sales of about Bt1.6 billion by the end of this year, about Bt790 million of which will be from The Pizza Company," said Arth.
The company claims 100-per-cent coverage of first- and second-tier provinces, which have populations of more than 1 million and between 500,000 and 1 million, respectively.
Arth Prakhunhungsit, general manager-franchising, said the company would open 10 new franchised restaurants each for The Pizza Company and Swensen's focusing on third-tier provinces, which have a population of less than 500,000. These include Nakhon Phanom, Yasothon, Kalasin, Mae Hong Son, Tak, Kamphaeng Phet, Trat, Satun, Phang Nga and Narathiwat.
"With franchising, we are able to expand our flagship restaurant brands more aggressively, especially in second- and third-tier provinces," said Arth.
He added that the company had reduced the investment cost for its franchisees opening restaurants by 15 per cent on average by simplifying store designs and fixtures.
The initial cost for opening each The Pizza Company outlet through franchising is about Bt10.5 million, and about Bt6 million for each Swensen's restaurant. Each store occupies an average space of between 180 and 200 square metres.
He said the company also required local entrepreneurs to have knowledge and skills in their own communities.
"We have a strong management system, which can be applied and implemented immediately by our franchisees," he added.
Arth said the company started franchising The Pizza Company brand in 2002, while franchising of Swensen's began in 2004.
Minor Food Group operates 203 The Pizza Company restaurants in Thailand, 49 of which are franchised outlets.
The company also has 39 The Pizza Company restaurants in many markets abroad, including China, Dubai, Saudi Arabia, Jordan, Bahrain and Cambodia. About 14 of these outlets, mainly in China, are the company's own.
Arth said the company had 216 Swensen's restaurants in Thailand, of which 102 are franchises. It also has six franchised Swensen's in Dubai, Saudi Arabia and Cambodia.
"We plan to open new franchised outlets for both The Pizza Company and Swensen's in Laos in December, and early next year in Vietnam and India," said Arth.
He said all franchisees would run their restaurants under 10-year contracts. The payback period will be about four years.
Minor Food Group yesterday announced 24-per-cent growth in year-to-date sales by The Pizza Company franchised restaurants. The corresponding growth for Swensen's franchised outlets is 38 per cent from the same period last year.
Average same-store growth for both The Pizza Company and Swensen's in the first nine months of the year came in at 2 per cent. This represents an improvement on the 1-per-cent average posted last year.
"We expect our franchised outlets, both The Pizza Company and Swensen's, to generate combined sales of about Bt1.6 billion by the end of this year, about Bt790 million of which will be from The Pizza Company," said Arth.
Thursday, September 24, 2009
Canon to franchise photo-book service
Canon Marketing (Thailand) will franchise its photo book-making service next quarter to tap rising demand from consumers in the near future, while its traditional enterprise market has been throttled by the global crisis.
"The photo book-making service overseas such as in the US is very popular, as the business so far this year has grown by 35 per cent from last year. We expect our revenue from the new business to grow not less than that in the US," Soontorn Pantaramongkon, senior director and general manager for business imakging solutions, said yesterday.
Canon wants to diversify risk from the corporate market, which took the brunt of the economic slump, while the retail market was relatively unscathed.
The company along with its strategic partner in photo book-making - Sib Khon - were preparing a franchise business model under the brand "imageGang by Canon", as well as a marketing plan aimed at whipping up consumer demand.
The companies plan to unveil the new business model next quarter.
Canon Marketing will recognise revenue from the business by selling printing solutions and after-sales services to the franchisees.
Sib Khon has designed photo book-making software to use with Canon's Press C6000 digital image printer. Canon and Sib Khon started the business at the beginning of this year by setting up the first branch in Siam Square.
The photo book-making service is under Canon's print on-demand business unit (POD). Sales of Canon printers have dropped from last year, while sales of products from the POD and the professional and graphic arts business unit (PGA) have increased by 50 per cent.
About 80 per cent of Canon's revenue comes from multifunction photocopiers, and colour and black-and-white digital printers.
The overall market for those products in the first half of the year slid by 15 per cent from the same half in 2008. Although Canon has lost share in that business - from 23 per cent last year to 20 per cent - it is still the market leader.
POD and PGA focus on printing for young entrepreneurs and SMEs, whose printing volumes are smaller than that of a large corporation.
Examples of printing materials are business cards, manuals, brochures, cards, posters, leaflets and coupons.
Canon targets its total revenue rising 18 per cent this year to Bt1.28 billion, with Bt60 million generated by POD and PGA. That forecast excludes revenue from photo book-making service, which is quite difficult to evaluate this year.
"The photo book-making service overseas such as in the US is very popular, as the business so far this year has grown by 35 per cent from last year. We expect our revenue from the new business to grow not less than that in the US," Soontorn Pantaramongkon, senior director and general manager for business imakging solutions, said yesterday.
Canon wants to diversify risk from the corporate market, which took the brunt of the economic slump, while the retail market was relatively unscathed.
The company along with its strategic partner in photo book-making - Sib Khon - were preparing a franchise business model under the brand "imageGang by Canon", as well as a marketing plan aimed at whipping up consumer demand.
The companies plan to unveil the new business model next quarter.
Canon Marketing will recognise revenue from the business by selling printing solutions and after-sales services to the franchisees.
Sib Khon has designed photo book-making software to use with Canon's Press C6000 digital image printer. Canon and Sib Khon started the business at the beginning of this year by setting up the first branch in Siam Square.
The photo book-making service is under Canon's print on-demand business unit (POD). Sales of Canon printers have dropped from last year, while sales of products from the POD and the professional and graphic arts business unit (PGA) have increased by 50 per cent.
About 80 per cent of Canon's revenue comes from multifunction photocopiers, and colour and black-and-white digital printers.
The overall market for those products in the first half of the year slid by 15 per cent from the same half in 2008. Although Canon has lost share in that business - from 23 per cent last year to 20 per cent - it is still the market leader.
POD and PGA focus on printing for young entrepreneurs and SMEs, whose printing volumes are smaller than that of a large corporation.
Examples of printing materials are business cards, manuals, brochures, cards, posters, leaflets and coupons.
Canon targets its total revenue rising 18 per cent this year to Bt1.28 billion, with Bt60 million generated by POD and PGA. That forecast excludes revenue from photo book-making service, which is quite difficult to evaluate this year.
Wednesday, September 16, 2009
CP ALL TO INCREASE NUMBER OF 7-ELEVENS
CP All, the operator of 7-Eleven convenience stores, is planning to increase the number of franchised stores to 60 per cent within five years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Tuesday, September 15, 2009
GFA to double outlet total in five years
Global Franchise Architects (GFA), the Swiss owner of Coffee World and other food and beverage chains, is set to double its business size to 200 outlets by 2013.
About half the additional outlets will belong to Coffee World, with the rest under its six diversified brands: The Cream & Fudge Factory, Pizza Corner,New York 5th Avenue Deli, The Donut Baker, Juisomania and Conizza. Each outlet will require an investment of 2-6 million baht, depending on store size.Each will create six to 10 new jobs.
"We currently have the capability to open at least 10 outlets per month, which would double our size in one year. We are confident of moving faster than in the past because our people, product variety, factories and IT solutions are all ready. However, our biggest challenge is to find good locations," said Fred Mouawad, the company's chairman and CEO.
Coffee World is the only chain to have its own coffee roasting factory in Thailand.
Mr Mouawad wants to speed its expansion from next year because he is optimistic the economy will improve slightly and inquiries from potential franchisees have increased. The downturn has not hit the food business too hard because people still have to eat, he said.
To attract investors, the company has cut the franchisee fee for food and beverage brands by 20% until the year-end.
GFA operates 105 outlets nationwide.About 75% are company-owned and the rest franchised. In the near future, the ratio will slide to 60:40.
Sales are not expected to grow this year, for the first time in 12 years in Thailand, because of the tourism slump.
Mr Mouawad aims to counter this with more local promotion and lowerpriced products.
GFA plans to introduce its new coffee outlet format serving a full range of bakery items at CentralWorld in the coming months. The company will spend 6 million baht for this new outlet.
GFA operates 210 stores under nine food and beverage brands in 10 countries.Thailand is its biggest market with 105 outlets, followed by India with 75. The rest are in Vietnam, Indonesia, Dubai,Bangladesh and Oman.
About half the additional outlets will belong to Coffee World, with the rest under its six diversified brands: The Cream & Fudge Factory, Pizza Corner,New York 5th Avenue Deli, The Donut Baker, Juisomania and Conizza. Each outlet will require an investment of 2-6 million baht, depending on store size.Each will create six to 10 new jobs.
"We currently have the capability to open at least 10 outlets per month, which would double our size in one year. We are confident of moving faster than in the past because our people, product variety, factories and IT solutions are all ready. However, our biggest challenge is to find good locations," said Fred Mouawad, the company's chairman and CEO.
Coffee World is the only chain to have its own coffee roasting factory in Thailand.
Mr Mouawad wants to speed its expansion from next year because he is optimistic the economy will improve slightly and inquiries from potential franchisees have increased. The downturn has not hit the food business too hard because people still have to eat, he said.
To attract investors, the company has cut the franchisee fee for food and beverage brands by 20% until the year-end.
GFA operates 105 outlets nationwide.About 75% are company-owned and the rest franchised. In the near future, the ratio will slide to 60:40.
Sales are not expected to grow this year, for the first time in 12 years in Thailand, because of the tourism slump.
Mr Mouawad aims to counter this with more local promotion and lowerpriced products.
GFA plans to introduce its new coffee outlet format serving a full range of bakery items at CentralWorld in the coming months. The company will spend 6 million baht for this new outlet.
GFA operates 210 stores under nine food and beverage brands in 10 countries.Thailand is its biggest market with 105 outlets, followed by India with 75. The rest are in Vietnam, Indonesia, Dubai,Bangladesh and Oman.
Monday, August 24, 2009
Chokdee to raise funds from MAI for expansion
Chokdee Dimsum Restaurant plans to grow domestically and venture abroad in the next three years with funds to be raised from the stock market.
Managing director Dheeraphop Siraprapathum said last week that the company was working with a financial adviser to prepare for listing on the Market for Alternative Investment (MAI).
According to the listing plan, it has already separated its business into three companies.
Chokdee International Food operates the central kitchen and distributes frozen dim sum to all branches nationwide.
Chokdee Dimsum Restaurant operates the dim sum restaurants.
And Chokdee International Franchise oversees its franchised restaurants.
Listing on the MAI would be the springboard for expansion, Dheeraphop said.
Domestically, Chokdee Restaurant would like to enter department stores and shopping centres, while it would like to penetrate overseas markets such as China.
"To have a restaurant in one shopping mall, we need at least Bt4 million. Meanwhile, if we would like to have a Chokdee Dimsum Restaurant overseas, we have to set up a central kitchen. Therefore, the investment will increase to Bt20 million per branch, which is too much for us. We need to mobilise funds from the bourse," he said.
The enterprise would grow rapidly after listing on the MAI, he said.
Since its establishment in 2000, it has multiplied to 18 branches, of which nine operate around the clock.
"We are the first dim sum restaurant in Thailand that sets reasonable prices, which everyone can afford and is open for 24 hours. This is our strength. We can utilise every resource such as employees for the most effective results to gain more money. And night-time is a good period for making money," he said.
The company plans to increase its coverage by six branches this year, of which three have already been created by franchising both in Bangkok and upcountry.
Managing director Dheeraphop Siraprapathum said last week that the company was working with a financial adviser to prepare for listing on the Market for Alternative Investment (MAI).
According to the listing plan, it has already separated its business into three companies.
Chokdee International Food operates the central kitchen and distributes frozen dim sum to all branches nationwide.
Chokdee Dimsum Restaurant operates the dim sum restaurants.
And Chokdee International Franchise oversees its franchised restaurants.
Listing on the MAI would be the springboard for expansion, Dheeraphop said.
Domestically, Chokdee Restaurant would like to enter department stores and shopping centres, while it would like to penetrate overseas markets such as China.
"To have a restaurant in one shopping mall, we need at least Bt4 million. Meanwhile, if we would like to have a Chokdee Dimsum Restaurant overseas, we have to set up a central kitchen. Therefore, the investment will increase to Bt20 million per branch, which is too much for us. We need to mobilise funds from the bourse," he said.
The enterprise would grow rapidly after listing on the MAI, he said.
Since its establishment in 2000, it has multiplied to 18 branches, of which nine operate around the clock.
"We are the first dim sum restaurant in Thailand that sets reasonable prices, which everyone can afford and is open for 24 hours. This is our strength. We can utilise every resource such as employees for the most effective results to gain more money. And night-time is a good period for making money," he said.
The company plans to increase its coverage by six branches this year, of which three have already been created by franchising both in Bangkok and upcountry.
Thursday, August 20, 2009
INDEX LIVING MALL ENTERS MIDEAST
Retail is Detail, the first foreign franchisee of Thailand's Index Living Mall, has revealed plans to spend US$40 million to $50 million (Bt1.37 billion to Bt1.71 billion) to open 10 Index Living Mall stores in all the major markets of the Middle East within three to five years.
Last week, the company opened its first 4,645-square-metre Index Living Mall outlet in Dubai Mall, the largest shopping complex in the United Arab Emirates' most populous city. The shop, which cost $5 million, carries more than 3,000 items of home-finishing products, of which 70 per cent are home accessories and the rest furniture.
The store employs 41 staff, including 38 Thais.
Index Living Mall is Thailand's largest home-retail chain, with 17 stores and combined retail space of 186,000 square metres.
Retail is Detail director Sanveer Gill said his company was confident the flagship Index Living Mall outlet in Dubai would break even within a year.
He said the company planned to open 10 Index Living Mall stores in many high-potential Middle East markets, including Abu Dhabi, Qatar, Bahrain and Saudi Arabia. Retail is Detail's parent company, Gill Capital, is also planning to open Index Living Mall outlets in Singapore and Malaysia.
"We are looking to open as many Index Living Mall stores as possible in a stand-alone format. They will have large retail spaces of more than 100,000 square feet [9,300 square metres] and will have store and warehouse altogether in one place," Gill said.
Index Living Mall executive director Kijja Patamasatayasonthi said the Thai company had also been approached by investors in Austria and India, wanting to become franchisees and open Index Living Mall stores in their markets.
"Our franchisee [Retail is Detail] has been offered huge retail space of 7,800 square metres by a mall developer in Bahrain. Another developer in Abu Dhabi has offered more than 10,000 square metres of retail space for an Index Living Mall in its shopping complex. This is because they believe Index Living Mall can be an attractive magnet for their shopping malls," Kijja said.
Gill said Dubai received 30 million tourists a year and was a perfect place for Index Living Mall to be seen.
"Despite the recession, which causes the crash of banks and real-estate industries, the purchasing power of people in Dubai is still there, because they produce oil and natural gas. They still have money to spend," Gill said, adding that 85 per cent of visitors to Index Living Mall in Dubai Mall bought something.
"During times of recession, people must spend more time at home. They also love to invest money for home improvement," he said.
Gill said 60,000-80,000 new houses and condominium units were delivered to owners in Dubai last year. The number has fallen 20-30 per cent this year.
"However, we believe the recession in Dubai will stabilise by the end of this year," he said.
Retail is Detail was formed six months ago as the investment arm of Singaporean-based Gill Capital to care for the group's retail expansions in the Middle East. The company has already opened eight retail stores in Dubai Mall, six of which are well-known franchise operations from markets around the world.
They are an Ethan Allen furniture store from the US, Index Living Mall from Thailand, a Gina ladies' shoe store from London, a Stella Luna ladies' shoe store from China, Vince Camuto ladies' shoes from the US and a Hershey candy and chocolate shop from the US. The company's own retail brands, which have also opened in Dubai Mall, are I Wanna Go Home furniture store and Candylicious candy and chocolate shop.
"We want to expand these retail brands to the rest of the Middle East," Gill said, adding that the company planned to open a new Index Living Mall outlet in Bahrain
or Abu Dhabi within nine to 12 months.
He said his company discovered Index Living Mall last August, when his father and mother visited Hua Hin on holiday. They had dinner in town, accidentally came across the Index Living Mall outlet and liked it very much.
"Index Living Mall made a good first impression, backed by strong visual merchandising, customer service and good product quality," Gill said.
Index Interfurn Group president Pisith Patamasatayasonthi said his company had already opened seven Index Living Mall outlets in Bangkok alone.
"We want to have 10 outlets serving all of Bangkok's major areas in the near future," he said.
In addition to a new Index Living Mall that will open at kilometre 5 of Bang Na-Trat Road this year, the company will spend |another Bt1.2 billion to open two new stores on Ratchaphruek and Ram-Indra roads.
Last week, the company opened its first 4,645-square-metre Index Living Mall outlet in Dubai Mall, the largest shopping complex in the United Arab Emirates' most populous city. The shop, which cost $5 million, carries more than 3,000 items of home-finishing products, of which 70 per cent are home accessories and the rest furniture.
The store employs 41 staff, including 38 Thais.
Index Living Mall is Thailand's largest home-retail chain, with 17 stores and combined retail space of 186,000 square metres.
Retail is Detail director Sanveer Gill said his company was confident the flagship Index Living Mall outlet in Dubai would break even within a year.
He said the company planned to open 10 Index Living Mall stores in many high-potential Middle East markets, including Abu Dhabi, Qatar, Bahrain and Saudi Arabia. Retail is Detail's parent company, Gill Capital, is also planning to open Index Living Mall outlets in Singapore and Malaysia.
"We are looking to open as many Index Living Mall stores as possible in a stand-alone format. They will have large retail spaces of more than 100,000 square feet [9,300 square metres] and will have store and warehouse altogether in one place," Gill said.
Index Living Mall executive director Kijja Patamasatayasonthi said the Thai company had also been approached by investors in Austria and India, wanting to become franchisees and open Index Living Mall stores in their markets.
"Our franchisee [Retail is Detail] has been offered huge retail space of 7,800 square metres by a mall developer in Bahrain. Another developer in Abu Dhabi has offered more than 10,000 square metres of retail space for an Index Living Mall in its shopping complex. This is because they believe Index Living Mall can be an attractive magnet for their shopping malls," Kijja said.
Gill said Dubai received 30 million tourists a year and was a perfect place for Index Living Mall to be seen.
"Despite the recession, which causes the crash of banks and real-estate industries, the purchasing power of people in Dubai is still there, because they produce oil and natural gas. They still have money to spend," Gill said, adding that 85 per cent of visitors to Index Living Mall in Dubai Mall bought something.
"During times of recession, people must spend more time at home. They also love to invest money for home improvement," he said.
Gill said 60,000-80,000 new houses and condominium units were delivered to owners in Dubai last year. The number has fallen 20-30 per cent this year.
"However, we believe the recession in Dubai will stabilise by the end of this year," he said.
Retail is Detail was formed six months ago as the investment arm of Singaporean-based Gill Capital to care for the group's retail expansions in the Middle East. The company has already opened eight retail stores in Dubai Mall, six of which are well-known franchise operations from markets around the world.
They are an Ethan Allen furniture store from the US, Index Living Mall from Thailand, a Gina ladies' shoe store from London, a Stella Luna ladies' shoe store from China, Vince Camuto ladies' shoes from the US and a Hershey candy and chocolate shop from the US. The company's own retail brands, which have also opened in Dubai Mall, are I Wanna Go Home furniture store and Candylicious candy and chocolate shop.
"We want to expand these retail brands to the rest of the Middle East," Gill said, adding that the company planned to open a new Index Living Mall outlet in Bahrain
or Abu Dhabi within nine to 12 months.
He said his company discovered Index Living Mall last August, when his father and mother visited Hua Hin on holiday. They had dinner in town, accidentally came across the Index Living Mall outlet and liked it very much.
"Index Living Mall made a good first impression, backed by strong visual merchandising, customer service and good product quality," Gill said.
Index Interfurn Group president Pisith Patamasatayasonthi said his company had already opened seven Index Living Mall outlets in Bangkok alone.
"We want to have 10 outlets serving all of Bangkok's major areas in the near future," he said.
In addition to a new Index Living Mall that will open at kilometre 5 of Bang Na-Trat Road this year, the company will spend |another Bt1.2 billion to open two new stores on Ratchaphruek and Ram-Indra roads.
FRANCHISE DEAL FOR KAZOKUTEI RESTAURANTS
The Oishi Group, a local leader in Japanese food and beverage, last week signed a five-year franchise contract to introduce Kazokutei soba- and udon-noodle restaurants in Thailand.The company also has right to renew the franchise for another five years after the contract expires.
Group managing director Tan Passakornatee said the introduction of Kazokutei would serve the great potential of Thailand's noodle culture and was in line with the company's strategy of opening up new market segments following the great success of its ramen-noodle restaurants.
Kazokutei is the No-1 soba and udon restaurant in Japan. The company plans to open as many as 20 in Thailand within five years.
Tan said his company would spend Bt50 million to open five restaurants in the first year. Locations in central Bangkok frequented by Japanese, such as Sukhumvit Soi 39, will be sought. Each Kazokutei restaurant will employ 20-30 staff.
The opening of new franchised restaurants will help it make better use of its new noodle machine being installed at the company's factory in the Navanakorn Industrial Estate in Pathum Thani province.
Tan said Thailand was among the first international markets for Kazokutei franchises.
In addition to the Kingdom, Kazokutei has also signed franchise agreements with local investors in China and Singapore.
Tan said the Oishi Group expected this year's sales to increase 20 per cent to Bt7.2 billion.
Of that, 45 per cent will be from its Japanese restaurants and 55 per cent from its branded beverages: Oishi ready-to-drink green tea, Amino OK functional drinks and Coffio ready-to-drink coffee.
In addition to managing the Oishi Group, Tan used more than Bt400 million of his own money to develop two hotels in Prachuap Khiri Khan's Pran Buri district: the Moroccan-style Villa Maroc and the Ali Baba boutique hotel.
"My idea was not to build hotels, but rather architectural art on the beach, to stimulate tourism in the area," said Tan.
Tan will also develop a new community mall on 9 rai of land on Nimmanahaeminda Road in Chiang Mai, in conjunction with Siam Future Development.
Another project is an art centre on 5 rai of land, also in Chiang Mai, in cooperation with the Thailand Creative & Design Centre and Thailand Knowledge Park.
Group managing director Tan Passakornatee said the introduction of Kazokutei would serve the great potential of Thailand's noodle culture and was in line with the company's strategy of opening up new market segments following the great success of its ramen-noodle restaurants.
Kazokutei is the No-1 soba and udon restaurant in Japan. The company plans to open as many as 20 in Thailand within five years.
Tan said his company would spend Bt50 million to open five restaurants in the first year. Locations in central Bangkok frequented by Japanese, such as Sukhumvit Soi 39, will be sought. Each Kazokutei restaurant will employ 20-30 staff.
The opening of new franchised restaurants will help it make better use of its new noodle machine being installed at the company's factory in the Navanakorn Industrial Estate in Pathum Thani province.
Tan said Thailand was among the first international markets for Kazokutei franchises.
In addition to the Kingdom, Kazokutei has also signed franchise agreements with local investors in China and Singapore.
Tan said the Oishi Group expected this year's sales to increase 20 per cent to Bt7.2 billion.
Of that, 45 per cent will be from its Japanese restaurants and 55 per cent from its branded beverages: Oishi ready-to-drink green tea, Amino OK functional drinks and Coffio ready-to-drink coffee.
In addition to managing the Oishi Group, Tan used more than Bt400 million of his own money to develop two hotels in Prachuap Khiri Khan's Pran Buri district: the Moroccan-style Villa Maroc and the Ali Baba boutique hotel.
"My idea was not to build hotels, but rather architectural art on the beach, to stimulate tourism in the area," said Tan.
Tan will also develop a new community mall on 9 rai of land on Nimmanahaeminda Road in Chiang Mai, in conjunction with Siam Future Development.
Another project is an art centre on 5 rai of land, also in Chiang Mai, in cooperation with the Thailand Creative & Design Centre and Thailand Knowledge Park.
NEO SUKI TO OPEN CHINA FRANCHISE
Neo Suki Thai Restaurants has returned to the Chinese market with a plan to have three franchises up and running in Guangzhou next year.
The company recently signed a Memorandum of Understanding (Mou) with Feed Master Group (China) to be its franchisee in the country, managing director Skon Kubpiyajanya said last week.
Neo Suki will co-invest with Feed Master Group in each Neo Suki restaurant, contributing 20 to 25 per cent. It will receive a share of the revenue from each restaurant equivalent to the ivestment stake, as well as a franchise fee.
This is the first time that Feed Master Group, whose primary business is manufacturing animal feed, has diversified into another food business. The firm approached Neo Suki a few months ago about buying franchises.
Skon said he had a chance to talk with Feed Master executives as part of a delegation accompanying Prime Minister Abhisit Vejjajiva on a visit to Guangzhou last month, and clinched the deal during the trip. Abhisit was a guest of honour at the MoU signing ceremony at Impact Muang Thong Thani last week.
"Our partner is looking for a location for the first Neo Suki restaurant, and is hoping to lease space in the Grand Ville shopping mall in the centre of Guangzhou. The first branch, which will likely require an investment budget of 2 million yuan [Bt10 million], is expected to open by the end of this year. We want to have three branches open by the end of next year," he said.
Skon said Guangzhou was a good city in which to launch its suki restaurants as it will host the Asian Games next year. It is also major tourist destination whose service businesses, including restaurants, have enjoyed strong growth, he said.
Neo Suki opened a branch in Bejing in 2005 - the first suki restaurant in China - with a local partner. The venture failed, however, and Neo Suki withdrew its investment after six months.
"I've learned that it is not easy to get into the restaurant business in China, which is quite complicated for foreign investors. The first time, we co-invested with a local partner. Experience has shown me that it would be better to expand using the franchise model and let the local partner, who knows Chinese culture well, take full responsibility for operating the restaurant. I'm absolutely confident we won't fail this time," he said.
The firm plans to expand the Neo Suki chain to Xiamen and other tourism destinations in mainland China, Skon said.
The company recently signed a Memorandum of Understanding (Mou) with Feed Master Group (China) to be its franchisee in the country, managing director Skon Kubpiyajanya said last week.
Neo Suki will co-invest with Feed Master Group in each Neo Suki restaurant, contributing 20 to 25 per cent. It will receive a share of the revenue from each restaurant equivalent to the ivestment stake, as well as a franchise fee.
This is the first time that Feed Master Group, whose primary business is manufacturing animal feed, has diversified into another food business. The firm approached Neo Suki a few months ago about buying franchises.
Skon said he had a chance to talk with Feed Master executives as part of a delegation accompanying Prime Minister Abhisit Vejjajiva on a visit to Guangzhou last month, and clinched the deal during the trip. Abhisit was a guest of honour at the MoU signing ceremony at Impact Muang Thong Thani last week.
"Our partner is looking for a location for the first Neo Suki restaurant, and is hoping to lease space in the Grand Ville shopping mall in the centre of Guangzhou. The first branch, which will likely require an investment budget of 2 million yuan [Bt10 million], is expected to open by the end of this year. We want to have three branches open by the end of next year," he said.
Skon said Guangzhou was a good city in which to launch its suki restaurants as it will host the Asian Games next year. It is also major tourist destination whose service businesses, including restaurants, have enjoyed strong growth, he said.
Neo Suki opened a branch in Bejing in 2005 - the first suki restaurant in China - with a local partner. The venture failed, however, and Neo Suki withdrew its investment after six months.
"I've learned that it is not easy to get into the restaurant business in China, which is quite complicated for foreign investors. The first time, we co-invested with a local partner. Experience has shown me that it would be better to expand using the franchise model and let the local partner, who knows Chinese culture well, take full responsibility for operating the restaurant. I'm absolutely confident we won't fail this time," he said.
The firm plans to expand the Neo Suki chain to Xiamen and other tourism destinations in mainland China, Skon said.
Au Bon Pain shifts to woo local customers
The decline in foreign tourists and the H1N1 flu have forced the Au Bon Pain sandwich and coffee chain to revise its business strategy.
The local franchise operator has adjusted products, pricing, store expansion and store management as well as backoffice operations, said Wipa Boonpalit,general manager of ABP Cafe (Thailand).
"Our new strategy will focus on local customers, particularly office workers who are coffee lovers as a potential market to offset the missing foreign customers," she said.
Currently, foreign customers at Au Bon Pain make up half of its total.
The company introduced a new coffee menu to meet local tastes last month.Based on its research, local customers like creamy and sweet coffee while foreigners require less sweet coffee. The new drinks cost 45 baht, cheaper than the 65-70 baht charged for other coffee drinks.
The price cuts should encourage more local visits and lift the proportion of local customers to 60%, said Ms Wipa.
This year, the company has invested tens of millions of baht to construct a new factory to serve business expansion.The output will be exported to its foreign network, including outlets in Malaysia and India, which are scheduled to be opened in the near future.
ABP Cafe operates 40 outlets nationwide and aims to add about 10 per year to eventually reach 100. The new store size swill be scaled down to 100 square metres from between 120 and 200 sq m previously, aimed at speeding up outlet expansion.
In the second half of this year, the company will open three to four outlets costing 3-5 million baht each.
The local franchise operator has adjusted products, pricing, store expansion and store management as well as backoffice operations, said Wipa Boonpalit,general manager of ABP Cafe (Thailand).
"Our new strategy will focus on local customers, particularly office workers who are coffee lovers as a potential market to offset the missing foreign customers," she said.
Currently, foreign customers at Au Bon Pain make up half of its total.
The company introduced a new coffee menu to meet local tastes last month.Based on its research, local customers like creamy and sweet coffee while foreigners require less sweet coffee. The new drinks cost 45 baht, cheaper than the 65-70 baht charged for other coffee drinks.
The price cuts should encourage more local visits and lift the proportion of local customers to 60%, said Ms Wipa.
This year, the company has invested tens of millions of baht to construct a new factory to serve business expansion.The output will be exported to its foreign network, including outlets in Malaysia and India, which are scheduled to be opened in the near future.
ABP Cafe operates 40 outlets nationwide and aims to add about 10 per year to eventually reach 100. The new store size swill be scaled down to 100 square metres from between 120 and 200 sq m previously, aimed at speeding up outlet expansion.
In the second half of this year, the company will open three to four outlets costing 3-5 million baht each.
Subscribe to:
Posts (Atom)