Snack franchisees set for regional expansion
Two Thai franchise enterprises plan to expand into other Asean countries over the next few years to boost growth ahead of the seamless regional market.
The companies are both banking on the opportunities presented by the implementation of the Asean Economic Community (AEC) in 2015, which will expand the potential market size from 65 million customers to 550 million.
Boonprasert Pupan, managing director of N&B Pizza Crepe, yesterday said the company expected to double its revenue by 2015 from this year's projection of Bt80 million.
N&B is a franchise business producing crepe snacks with a variety of toppings. The firm generated revenue of Bt61 million last year.
Boonprasert said the targeted markets would be nearby countries including Laos, Vietnam and Cambodia, as consumers in those markets are familiar with and favour Thai foods and goods.
To prepare for Asean integration, the firm has started to employ English-language teachers to train its workers. It has also drawn up business-management and operational plans in English to seek partners within these countries.
N&B has more than 130 outlets domestically. To start up an N&B outlet, a franchisee needs to invest either Bt800,000 for a shop under a 10-year contract or invest Bt69,000 for setting up an N&B kiosk.
Boonprasert said that to become successful franchisees, investors must have good location as well as the ability to create brand awareness.
Meanwhile, Thai-owned doughnut brand Daddy Dough is expected to ex-pand its business into other Asean countries soon to take advantage of market integration under the AEC.
Peter Thaveepolcharoen, managing director of Daddy Dough (Thailand), said the firm was considering opening businesses in countries such as Vietnam next year.
"The company is seeking local partners or franchisees in high-potential markets in Asean. The strategy to expand our market to neighbouring countries will contribute to higher growth for the firm," he said.
Daddy Dough generated income of Bt120 million last year and expects growth to Bt140 million this year. It has 25 outlets and will open four more by year-end.
In preparation for Asean integration, Daddy Dough has registered its trademark in countries such as Vietnam, Malaysia, Australia and China to support plans to open businesses overseas in the future.
With its own signature products and using zero trans-fat oil for cooking, Peter said the firm was confident about capturing more market share in the doughnut market both domestically and regionally over the next few years.
