Evolution spins off restaurants
Evolution Capital has spun off its fast-service restaurant business to Evolution Foods (Thailand), a new joint venture with Wuttisak Limphanit, the founder of the eponymous beauty and skincare clinic.
"I’m personally interested in the hospitality businesses particularly hotels and restaurants," said Wuttisak, who is still a shareholder of Wuttisak Clinic, which he started 14 years ago.
Wuttisak, who just opened his own modern Thai restaurant called Osha on Wireless Road, holds 10 per cent in the new venture. His restaurant was franchised from San Francisco. The partnership will allow Wuttisak to apply his marketing and branding skills and his experience in regional expansion.
Wuttisak Clinic operates 120 beauty clinics in Thailand, with branches in Laos, Cambodia, Myanmar and Vietnam.
Sanjay Singh, chief executive officer of Evolution Capital, said the subsidiary was set up with Bt625 million in registered capital
Evolution Capital has transferred its franchised food business – The Coffee Bean & Tea Leaf, Kyochon Chicken and Domino’s Pizza – to the newly incorporated company.
"We have a rapidly growing regional footprint," he said.
Besides the franchise rights to The Coffee Bean & Tea Leaf in Thailand, the company is also the master franchisee for Domino’s Pizza in Thailand and Cambodia and is rolling out Kyochon Chicken in Thailand, Cambodia, Myanmar and Laos.
"The investment made by Dr Wuttisak is a huge vote of confidence in the industry as well as in the regional business plan of Evolution Foods.
"The company offers a unique business model, which is positioned for tapping a very large consumer market in the AEC region.
"Dr Wuttisak’s investment will further accelerate our expansion plans not only in Thailand, but also in key regional markets as we seek to tap the strong growth trends across our neighbouring economies," Singh said.
The company’s shareholders also stand to gain as Evolution Foods is valued at about Bt1.5 billion.
In Thailand, the company operates 20 Domino’s Pizzas, 17 The Coffee Bean & Tea Leafs and five Kyochon Chickens.
The company has set an ambitious target to expand its chains to 120-130 branches in three years at a cost of Bt1.2 billion. Revenue from those stores is expected to reach Bt3 billion annually, of which 20 per cent will come from regional markets.
To fund the regional expansion plan, the company aims to list Evolution Foods (Thailand) on the local stock exchange in 2017-18, said Krit Srichawla, chairman of Evolution Capital.
