Bangkok Post : Black Canyon growing abroad to diversify risk

RESTAURANTS

The Black Canyon coffee and restaurant chain aims to triple its overseas outlets to 100 within the next five years to reduce local political risk.Its overseas outlets in six countries - Singapore, Indonesia, Malaysia, Burma, Cambodia and the United Arab Emirates - would total 34 by the end of this year, said Pravit Chitnarapong, managing director of Black Canyon (Thailand) Co.

"We plan to penetrate China next year and this will help speed up our overseas outlet expansion. It's our shortcut to reach 100 outlets within the five-year period," he said.

Initially, Black Canyon had planned to open five to seven new overseas outlets per year, which would take it a decade to reach the target of 100.

Mr Pravit said China represented a huge opportunity because of years of robust economic growth while the yuan remains strong. "So far, we haven't see any negative factors in China."

The company will open its first branch in Shanghai in April on a franchise basis. It will cost 12 million baht and cover 150 square metres of space on Nanjing Road.

"I'm confident in our Chinese partner who has brought many ideas from developed countries like the US and has a western educational background," said Mr Pravit. "He has also experienced our coffee and food menus several times when he came to Thailand."

Additionally, no other businesses in China currently offer the wide range of quality coffee and food menus in the same shop as Black Canyon does. The company believes it will do especially well next year because Shanghai will stage the World Expo 2010.

Apart from China, the company plans to open another five outlets next year, three n Indonesia and tow in Malaysia.

Mr Pravit said the company had expanded its business internationally because Thai food and its coffee are well regarded by foreigners.

"The overseas market is different from the domestic one which has political instability, which reduces consumer confidence and purchasing power," he said.

At home, Mr Pravit said, 12 new outlets, mainly small in size, would be opened in petrol stations or airports. Black Canyon expects to have 206 domestic outlets in total by year-end.

Sales of Black Canyon in 2009 are estimated to have grown by 10% to 1.15 billion baht. Of the total, 650 million would come from its own operations and 500 million from franchised stores.