CRG foresees vibrant growth in restaurant business, strategy to grow business through acquisition of new brands and co-investment with SMEs for leapfrog expansion
CRG foresees vibrant growth in restaurant business, strategy to grow business through
acquisition of new brands and co–investment with SMEs for leapfrog expansion
Central Restaurants Group Co., Ltd. (CRG) announces a plan to grow its share in the Bt140 billion food chain segment through “Change for Growth” strategy, eyeing to increase brands in its portfolio and co-investment with small operators under “Let’s Success Together” scheme. To maintain the leading position in the chain restaurant industry to cash in on macro-economic advancement, CRG has reached a deal with a giant delivery service operator in Thailand while the move to penetrate Vietnam is readied as part of Asean expansion plan. CRG registered Bt10,987 million in revenue in 2017 while the combined net profit of all brands increased by over 15%. Sale revenue in 2018 is targeted to rise by 11%.
Mr. Nath Vongpanich, President of CRG, unveils an ambitious expansion plan in 2018 to further cement the company’s leading position in the food chain industry supported by 11 fast food brands in the portfolio built up over the 40-year period. The goal is to grow its share in the Bt140-billon food chain segment, part of the Bt400-billion vibrant food industry, from approximately 8% at present. Under the “Change for Growth” strategy, the expansion plan highlights 3 main aspects. First, new restaurant brands will be introduced through the acquisitions of new brands and franchises as well as co-investment on top of new business concepts and platforms to reach out to consumers and expand the customer base in Thai and overseas markets. CRG’s investment activities will be revved up more than ever in 2018 under the “Let’s Success Together” scheme whereby small and medium-sized restaurant operators or SMEs are invited for co-investment. While SMEs are vital to the economy, CRG boasts strengths and experience in raw material sourcing, marketing, personnel and know-how accumulated for over 40 years. SMEs are invited to submit their interest to e-mail: firstname.lastname@example.org.
“The “Let’s Success Together” scheme will generate a significant growth to CRG, in terms of brand and branch expansion. There are still several missing spots in our brand portfolio while new concepts will entice our customers and expand our customer base. Meanwhile, the number of outlets will expand quickly through co-investment opportunity extended to new investors and new-generation investors,” Nath said.
Second, CRG will proceed with its overseas expansion plan, taking advantage of Central Group’s business bases in several countries in Southeast Asia, Asia and Europe. Asean will be the focal point of CRG’s overseas expansion plan this year, starting with Vietnam where Central Group owns retail businesses like Big C and Robins which stand ready to support CRG’s expansion.
Vietnam shows a great potential with about 90-100 million population which is above Thailand’s. Vietnamese consumers hold high purchasing power. The modern trade and food industry in Vietnam remains smaller than Thailand’s but it boasts a huge growth potential, marking an opportune time for investment.
Third, CRG will develop a management system and staff with new DNA to support the expansion. In this regard, Central Kitchen will be developed for food cost and quality control. POS System will be improved for better service quality. Business Intelligence (BI) will be deployed to categorize and analyze CRG’s data, to serve its business at all levels. Staff will be groomed to share a new DNA, encouraging employees in the Thailand 4.0 era to be daring, decisive and ready to take risks as well as warmly embrace mistakes.
CRG targets over Bt12,000 million in revenue this year, or an increase of 11% from the previous year. In 2017, CRG witnessed growth in net profit as well as earnings in all brands. Several brands showed extraordinary growth: for instance, Mister Donut, 17%; Chabuton, 332%; Ootoya, 267%; Tenya, 368%; Katsuya, 259%; and Yoshinoya, 129%.
As CRG will celebrate the 40th anniversary in September this year, the company has prepared a series of best-ever promotion campaigns for valued customers which will be gradually launched from the second quarter onward.
Mr. Piyapong Chitchumnong, Senior Vice President for Marketing, Central Restaurants Group, asserted that setting sight to entice a wider group of customers, CRG will adjust the food concepts of all 11 brands -Mister Donut, KFC, Auntie Anne’s, Pepper Lunch, Chabuton, Cold Stone Creamery, The Terrace Restaurant, Yoshinoya, Ootoya, Tenya, Katsuya while maintaining all strengths which are food quality, tastes, food variety and excellent service, to accommodate high growth potential in the food industry that sees more and more new players. For instance, Auntie Anne’s will emphasize product innovation for a greater variety. Meanwhile, Mister Donut Cafe/Donut & More, a new concept outlet of Mister Donut, will be unveiled, featuring new decorations and menus. Beside best-selling doughnuts, the restaurant will offer fresh coffee and Wonut (hot waffle made from doughnut dough) with various toppings. The concept store will be replicated in shopping malls, hypermarkets, and non-mall venues like hospitals, office buildings, and gas stations.
Other brands will also introduce a new food concept and decor. Ootoya restaurants, for instance, will be renovated to reach out to more customers.
Piyapong added that CRG will also focus more on food delivery as overall delivery services show at least 12-15% growth rate per annum, being a trendy service for new generations. CRG has forged partnership with leading delivery service operators like Line Man, Food Panda, Uber Eats and GrabFood and plans to further expand the network. The operating system of all outlets will also be upgraded to accommodate the growing delivery services.
As a move forward, CRG is rushing on the system that allows customers to demand food from various brands in one order. In the pipeline is “Food Heaven”, a new concept restaurant that spans at least 300sqm and features various food brands of CRG where customers can enjoy a great selection of delicacies at one place.