Central Restaurants Group (CRG) aims to open up to 120 new restaurants this year, as it expects the restaurant industry to expand and the value to reach close to 500 billion baht in 2024.
The overall market this year is expected to grow by 5-7% to be worth around 480 billion baht, said Nath Vongphanich, president of CRG.
However, the company foresees the restaurant business facing new challenges in terms of management, energy prices and the rising cost of raw materials.
Moreover, various restaurant operators have adjusted by launching promotional campaigns to respond to the needs of consumers such as by introducing new menu items.
Last year there was an influx of new players, with over 100,000 new establishments entering the market, according to online food delivery platform Line Man Wongnai.
However, data showed that 65% of the new restaurants will close following three years of operation.
Mr Nath said there are positive factors for the Thai restaurant industry this year, due to stimulus policies and the government's promotion of tourism.
"The government expects more than 30 million foreign tourists this year, along with a recovery of the export sector, and this will drive the industry in a positive way," he said.
Mr Nath said that even though the restaurant business faced significant challenges last year, in particular global economic uncertainties, the company's sales increased to 14.5 billion baht, up by 13% from 2022.
In 2023, the company opened more than 140 branches under 21 brands, bringing the total number of branches to 1,600 nationwide.
Mr Nath said this year the company aims to drive revenue growth by 14% through the expansion of new branches, especially for popular and high potential brands within the group such as KFC, Auntie Anne's, Ootoya and Shinkanzen Sushi.
The goal is to open between 100 and 120 new branches in 2024.
For the existing joint venture partners' brands, the company aims to expand by more than 25 branches.
"The company is also seeking new business partners for joint ventures. The criteria include growth potential, unsaturated business and the passion for competition," Mr Nath said.
This year, the company aims to add 2-3 more brands under the CRG ecosystem.
Mr Nath announced capital expenditure for this year of 1-1.2 billion baht, up by 300 million baht from last year.
The company has allocated 6 billion baht for the next five years (2024-28), targeting to reach 2,000 restaurants.