Expanding McThai in synergy deal with Foremost producer
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McThai, the local franchisee and operator of McDonald's restaurants, plans to invest Bt650 million on new-outlet expansion this year.
The company yesterday also announced a business synergy with Friesland Campina (Thailand), the local producer of Foremost dairy products, in supplying its UHT milk to every McDonald’s restaurant around the country.
Foremost UHT milk will now be part of McDonald’s Happy Meal menu, as well as other a la carte offerings.
Hester Chew, chairman of the executive committee and chief executive of McThai, said the synergy would allow McThai to increase customer penetration by offering a wider variety of products in its standard menus, as well as launching value campaigns and new marketing and business initiatives.
He said McDonald’s would be able to offer more alternative nutrition to its customers, as Foremost is among the leading dairy brands in the market.
“Individual customers visit McDonald’s restaurants about 1.3 times a month on average. However, we have increased customer penetration from 26 per cent to 32 per cent last year. We aim to increase the level of penetration by between another 3 per cent and 5 per cent this year,” said Chew.
He added that the company planned to open about 20 new restaurants this year.
McThai now operates 160 outlets, of which 123 serve breakfast meals. Some 63 restaurants open 24 hours a day, and 87 outlets provide delivery services.
The chain also has 80 McCafe coffeehouses and 30 Drive-Through outlets.
Chew said 13 McDonald’s restaurants were opened last year, five fewer than was originally targeted. The massive flooding late in the year delayed their opening to this year.
“Despite the floods, we were able to grow our sales by 30 per cent last year. We also target increasing our sales by another 25 per cent this year,” he said.
Chanin Archjananun, managing director of Friesland Campina (Thailand), said the cooperation between Foremost and McDonald’s would expand business potential and the customer base of both brands.
Foremost UHT dairy products with full natural nutrients are suitable for all ages and genders, which is the same customer group as McDonald’s, he said, adding that the move is in line with the company’s strategy to encourage consumers to drink milk at any place and any time.
“We target growing our sales by double digits this year,” he said.
The synergy with McDonald’s also allows the company to expand its distribution channels, which stand at about 100,000 retail outlets both directly and indirectly, he added.
