Expanding Hot Pot to list on MAI

Bualuang Securities has been appointed as the company’s financial underwriter and for the initial public offering process.
Sakuna Baicharoen, deputy chief executive officer, said the company had 131 restaurants currently under six major brands, namely Suki Chabu, Inter Buffet, Buffet Value, Hot Pot Prestige, Hot Pot Ramen, and Daidomon.
“We plan to open another 60 restaurants within the next three years. The investment will be between Bt7 million and Bt8 million per store,” she said.
Sakuna said the company had no plan to open restaurants in neighbouring markets over the next few years. However, it has started a feasibility study on potential markets such as Vietnam and Indonesia.
“We don’t think any international restaurant chains will successfully enter the Thai market once the Asean Economic Community is fully effective in 2015,” she said. “The market is quite competitive as local restaurant chains already dominate space at major shopping malls.”
Hot Pot achieved Bt1.4 billion in sales last year with Bt39 million in profit. The company posted Bt1.1 billion in sales and Bt32.5 million profit in 2010.
“We expect to grow our sales by between 20 and 30 per cent this year. The growth plan is in line with the company’s vision to become a key leader in Thailand’s buffet-restaurant market in terms of sales, number of stores, and consumer recognition,” Sakuna said.
“What we want to focus more on is increasing the awareness and recognition of our restaurants among Thai consumers,” she said.
Hot Pot last December took over Daidomon, a well-known grilled-food restaurant chain with about 20 stores currently, at a cost of Bt45 million.
All 20 Daidomon stores will undergo major renovation by the end of next year at a cost of Bt7 million to Bt8 million per branch.