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Burger King wants to double outlets in five years

Burger King wants to double outlets in five years

WEDNESDAY, November 30, 2011

Minor Food Group plans to double the local business of Burger King, a premium hamburger restaurant chain from the United States, within five years.

“We have opened three Burger Kings this year, in CentralWorld, Paradise Park and Central Festival Phuket,” John Heinecke, vice president of Burger Thailand, a unit of Minor Food Group and the Thai licensee of Burger King, said yesterday.
The company now operates 27 Burger Kings, mainly in tourist locations.
“We plan to open three more burger restaurants in Bangkok and the provinces, since both have still good opportunities for opening new stores,” he said.
The number of Burger Kings will double to more than 50 in five years at a cost of Bt10 million to Bt15 million per unit, depending on location, Heinecke said.
“We run Burger Kings on a different business model than our other restaurant brands such as The Pizza Company, which targets families and offers a variety of foods. Burger King is a niche burger restaurant aimed at high-traffic and upmarket locations.”
Sales at Burger King are also planned to double in five years from the more than Bt500 million expected for this year.
“We still see a lot of potential for Burger King in the Thai market,” he said.
The company will adhere closely to Burger King’s international concept of the “premium delicious” burger.
Minor is also looking at possibilities to acquire local and international restaurant brands that strategically fit its business.
It recently took over The Coffee Club in Australia, whose outlets are mostly franchises, and purchased Ribs and Rumps, which has six restaurants also in Australia serving steaks, ribs and seafood.
“The massive floods in Thailand have had a very limited impact on Minor Food Group and our expansion plan for the food business will be on track,” he said.
During the flood crisis, only the Burger King at The Avenue Chaengwattana had to be closed for two weeks. It reopened a few days ago.
Minor Food Group made its forecast and developed its business plan before the floods.
It has set up 13 warehouses for dry goods in many provinces to help distribute products throughout the country.
It also established three or four frozen-goods warehouses in the outskirts of Bangkok to support the group’s dairy and cheese factory in Nakhon Ratchasima’s Pak Chong district.
The company also operates 39 Sizzler steak and salad-bar restaurants locally. The 40th branch is set to open in CentralPlaza Grand Rama 9 by the end of this month.
Three more Sizzlers are set for next year – one in Bangkok and two upcountry – each costing Bt20 million to Bt25 million.
“With this expansion, we want to double top-line sales for Sizzler within five years,” Heinecke said.