S&P to press ahead in UK, China strong base cited despite US, EU woes
Despite the financial crises in the United States and Europe, S&P Syndicate, a major operator of restaurants and bakeries, has reaffirmed that it will continue its overseas expansion, especially in China and the United Kingdom.
"The UK remains a strong base of loyal customers for S&P Global, while China is an emerging market and its people have high purchasing power due to the improving economy," S&P Syndicate president Pravesvudhi Raiva said yesterday.
Last month, the company established a representative office in Beijing, following on from the opening of its flagship Patara restaurant in the capital two years ago. The company has enjoyed 100-per-cent growth in revenue from this branch.
There is a vast opportunity for the company to expand its portfolio in Beijing and elsewhere in China, Pravesvudhi said.
S&P Syndicate also plans to create a new brand for quick-serve restaurants that meet consumer lifestyle demands in coming years, said executive vice president Kessuda Raiva.
The name of the brand has not been finalised, she said, but it would be something like Suda: Siamese Rice Bar. The first such restaurant is expected to open next month in London, with the main target being young customers.
With this development, Pravesvudhi said the company planned to open five additional overseas restaurants over the next five years.
Most of the new outlets are expected to be in China and Britain. In China, each branch will cost at least Bt20 million, while the first UK branch entails a Bt60-million investment.
S&P Global currently operates 21 restaurants overseas: eight in Singapore, five in the UK, three in Taiwan, two in Switzerland, and one each in Beijing, Austria and the Philippines. The company has developed a number of brands to penetrate overseas markets: Patara for classic, authentic Thai restaurants, Patio for contemporary Thai restaurants, Thai for its cafe-restaurants, Bangkok Jam for trendy and premium-price restaurants, and Siam Kitchen for casual Thai restaurants.
Kessuda said the company expected to see at least 12-per-cent growth this year, from last year's revenue of Bt700 million.
With the overseas expansion, she estimates the global business will contribute 50 per cent of the group's revenue within five years, generating Bt2 billion in foreign income. The current proportion is 18 per cent.
