ZEN to triple number of restaurants by 2022
ZEN Corporation Group plans to triple the number of its owned and franchised restaurants under its Thai Brand Business unit by 2022 both in Thailand and around the world.
Siruwat Chatchawan, head of the Thai Brand Business, said that the unit is looking to open franchised outlets of what it calls its three hero-product brands - Tummour, Lao Yuan and Jaew Hon - in new overseas markets, especially in China, England, Australia, the United States and the United Arab Emirates (UAE).
“In overseas markets, 100 per cent of the restaurant expansion will be through franchising,” said Siruwat.
“We would like to set up our franchised base in major magnet or spotlight markets around the world as a way to strengthen our brand awareness.
“It is then easier for the company to explore franchised opportunities in other potential markets.”
ZEN Corporation Group operates 167 Thai restaurants under seven brands, of which 80 per cent are through franchising.
They are Tummour, Lao Yuan, Jaew Hon, Pho, Granny’s Chicken, Krua Thai, as well as De Tummour, which targets the premium segment.
However, Siruwat said three major product heroes are Tummour, Lao Yuan, and Jaew Hon, with total number of restaurant outlets now reaching 120, 16, and nine, respectively.
Siruwat said that the company also operates franchised outlets of its Thai restaurant brands in Vientiane (three), Yangon (three), and Phnom Penh |(one).
Listing plan
“We plan to increase the number of our Thai food restaurants to 600 totally by 2022, of which 80 per cent will be through franchising, and 20 per cent under our own equity.
“We (ZEN Corporation) also plan to list into the local stock market next year to facilitate our future expansion,” said Siruwat.
Siruwat founded the Tummour business seven years ago following his family’s legacy in Nakhon Phanom, where it has been involved in the Thai restaurant business for 22 years.
Siruwat’s Tummour business was merged into the Thai Brand Business of ZEN Corporation in October 2016.
He said that between Bt500 million and Bt600 million will be allocated to the expansion of its Thai restaurants every year over the next five years.
“We want to grow our annual revenue by 25 per cent every year,” said Siruwat, adding that the Thai Brand Business unit posted Bt1.2 billion in sales last year – with 70 per cent from the Tummour restaurants.
“The Thai Brand Business unit contributes about 30 per cent of annual revenue to ZEN Corporation Group, with 70 per cent from its Japanese restaurant brands.
The Thai Brand Business unit plans to increase its sales to Bt1.4 billion this |year.
ZEN Corporation Group targets Bt10 billion in total annual revenue in the next five years, of which 40 per cent will be from the Thai restaurants.
