Baiyoke Group is bringing Pablo cheese tarts from Japan to Bangkok, with the first shop opening today.
Hoping to serve Thais' growing taste for cheese tarts, the Pablo shop is located at Siam Paragon shopping complex, covering 100 square metres with 30 seats.
Mr Piyalert expects to generate 100 million baht in sales in the first year.
PDS Sweet Co was recently set up with 5 million baht in registered capital to run Pablo cheese tart operations in Thailand. It got master franchise rights to operate the brand for five years with a renewal option for another five years.
The company spent about 40 million baht to open the cheese tart shop and has hired about 20 employees.
"We expect to generate 100 million baht in sales from our first outlet in the first year of operation," said Piyalert Baiyoke, vice chairman of Baiyoke Group.
Under the agreement, the company will open eight Pablo cheese tart outlets in Thailand. Next year, it plans to open 3-4 Pablo shops in Bangkok.
Mr Piyalert said Pablo is the fifth food brand under the group's portfolio along with Ikkousha Ramen, Uchidaya Ramen, Misokatsu Yabaton and Sekai no Yamachan. Baiyoke itself has its core business in hotel and food can complement it.
Pablo cheese tarts are also available in Taiwan, South Korea, the Philippines and Indonesia.
Mr Piyalert noted that there is always a long line in front of Pablo shops in Japan. Pablo is a freshly baked cheese tart with three flavours -- plain, matcha and chocolate. Product prices are in the range of 75-780 baht.
"We won the rights to operate this cheese tart brand over 20 candidate restaurants in Thailand," he added.
Mr Piyalert said he is interested in food because he believes in its business potential as food is a necessity for people's lives.
He chose Pablo because the brand is popular among Thais after Japan waived visas for Thai Thai nationals travelling there a few years ago.
"Pablo is among the must-have items for Thais visiting Japan. Some even say their trip is not complete without a cheese tart from Pablo," he said.
Currently, there are about 3-4 cheese tart brands in Thailand, including Hokkaido cheese tart by popular actors Willy and Kathaleeya McIntosh, which will soon open an outlet in Siam Paragon.
Mr Piyalert expects to spend about 30-40 million baht annually for the next five years to expand the group's food business.
Baiyoke Group's sales revenue from their food businesses stood at 120 million baht last year and will increase to 180 million baht this year.