SET-listed S.Khonkaen Foods Plc (SORKON), a maker of processed food, is ready to expand its quick-service restaurant (QSR) business at a faster pace via the franchise system next year.
The company has hired professionals to strengthen its management team and upgrade its QSR management system for franchisees in a bid to enhance business efficiency, said chief executive Charoen Rujirasopon.
The move will cater to the aggressive expansion of its two QSR brands, Khao Kha Mu Yunnan and Saep Classic, at home and abroad next year.
"It's a year for investment and preparations to gear up for an aggressive expansion of our QSR business next year," he said. "We hope we can attract interest from many investors."
S.Khonkaen did not disclose the number of new restaurants targeted to be opened next year but said the growth rate would be very high.
Currently, there are 32 Khao Kha Mu Yunnan restaurants in Thailand and three in Laos and Cambodia. The company will next year focus on opening new small-scale shops on a franchise basis, which will require an investment of 89,000 baht. The small shops will help them reach more communities.
Moreover, the company will bring its own 32 restaurants under the franchise system as well. More food items including dim sum will also be added.
"By the end of this year, we will have one franchised Khao Kha Mu Yunnan restaurant in Laos and two in Cambodia," said Mr Charoen.
The company also owns eight Saep Classic restaurants serving Isan-style food. It has relocated some of those restaurants to more promising locations, including moving its Silom restaurant to The EmQuartier mall.
By year-end, four more Saep Classic restaurants will open, two of which will be by the company itself and the other two as franchises.
The company has begun offering food delivery service at its Saep Classic restaurants, starting with its outlet in the Laksi area of Bangkok this past September, generating a good response from customers.
Mr Charoen said the QSR business has lot of potential to grow, especially restaurants with delivery service.
This year, S.Khonkaen expects its QSR operations will grow 40% and generate 140 million baht in sales.
During the first nine months, the company posted a net profit of 60.2 million baht, down 29% from 84.3 million in the same period last year, on revenue totalling 1.95 billion, up 11.8% year-on-year.
Last year, its total revenue was nearly 2.4 billion baht.
Contributing to the rise were strong sales of local food and QSR operations.
SORKON shares closed yesterday on the Stock Exchange of Thailand at 60.50 baht, unchanged, in light trade worth 254,320 baht.