S Khonkaen buoyed by quick-service restaurants

The company, a producer and distributor of processed foods, aims to tap the demands of health-conscious consumers, and has adopted policies to use chemical-free ingredients as a selling point and focus on delivery service. 
It is offering new Thai dishes to attract international customers to its Saep Classic restaurants, and is remodelling the business of the Khao Kha Mu Yunnan restaurant chain by franchising it to kiosk operators to enhance access to local communities. 
It is confident that its QSR segment’s performance will contribute to double-digit total revenue growth its 2017 fiscal year.
Charoen Rujirasopon, chief executive of S Khonkaen Foods (SORKON), said the QSR business in Thailand was forecast to experience continued impressive growth this year thanks to a recovering economy, greater consumer confidence and purchasing power, and more hectic lifestyles. These are leading to growing popularity of several QSR brands and home or office delivery services.
SORKON’s policy for the QSR segment this year focuses on strengthening the business. To appeal to increasingly health-conscious consumers and follow healthy food trends, the company says it will source fresh, clean, chemical-free ingredients (such as chemical-free vegetables) from reliable farms.
In addition, the company will develop new packaging for ready-to-eat food products more appropriate to the now-popular delivery service. 
It will also soon open a prototype Saep Classic restaurant where food will be served chiefly by home delivery, after discovering that sales from that service now accounted for 20-25 per cent of total sales in the QSR segment.
On a monthly basis, it has been adding to the Saep Classic menu new Thai dishes that have proved popular to both local and international patrons, such as kaeng matsaman and phat thai, and conducting public relations and marketing communication campaigns to raise awareness of and stir up interest in the restaurants among foreign tourists in Thailand.
As for the Khao Kha Mu Yunnan chain, the company will remodel its investment structure, engaging franchisees to run kiosks with an initial capital requirement of Bt89,000 each to ensure their easy reach within local communities. 
As the franchising opportunities are drawing a lot of interest, it will gradually replace the existing arrangements with existing partners by franchising. In addition, it will offer new dishes (such as dim sum and vegetable dishes) to add variety, and will introduce pork-knuckle packs for sale in hypermarkets.
“This year QSR business will remain our core growth driver,” Charoen said. 
“We will adapt strategies to strengthen the business and enhance competitiveness. We will choose chemical-free ingredients to set new standards and boost consumers’| confidence, which will enable the QSR business to continue its robust growth and allow us to record a double-digit total revenue growth rate for FY2017.”