Santa Fe chain eyes expansion

Santa Fe chain eyes expansion

KT Restaurant Co, the operator of Santa Fe steakhouses, plans to triple the number of restaurants to 300 over the next 10 years.

Mr Surachai says steakhouses are among the top three fastest-growing food categories in Thailand.

Chief executive Surachai Chanarnudech said the company aims to open at least 20 new Santa Fe steakhouses a year during the next decade, starting from 2017. A third of the expansion will be under its own investment and the remainder under franchise contracts.

Of the 200 new steakhouses planned for the next decade, 21 branches are slated to open next year, of which seven are the group's own investment and 14 are outlets under franchise.

"We continue to expand our business because steakhouses are among the top three food categories with the fastest growth along with Korean and Thai food," Mr Surachai said.

The local steakhouse business grew by 20% this year, while the overall food sector grew by 10%.

Apart from the local market, KT has adjusted its expansion plan in the Asean market, shifting to open its first Asean branch in Vietnam instead of Cambodia.

All Santa Fe restaurants to be opened in Asean will be on a franchise basis.

KT is negotiating with companies and landlords to operate Santa Fe steakhouses in Vietnam and expects the first branch outside Thailand to open in 2018.

The company plans to open 50 branches in Vietnam over the next 10 years.

KT envisions opening Santa Fe restaurants throughout Southeast Asia. The company has registered its brand in all Asean countries except Singapore and Brunei.

The company plans to list on the Stock Exchange of Thailand in the next few years to raise funds for future expansion, including building a new central kitchen.

KT sales are expected to reach 21.5 billion baht this year, 12% higher than last year. But its sales this year will be lower than earlier forecast. The company has delayed expansion because of the economic downturn.

Mr Surachai said the company is eyeing sales growth of 10% to 2 billion baht next year. It will spend 280 million baht on new branches and to promote its steakhouse business next year.

Steak restaurants are estimated to be worth 8 billion baht this year.

Major steakhouse brands include Santa Fe, Sizzler by Minor Food Group, Wave Entertainment Plc's Jeffer and Chokchai Steakhouse.

Sizzler leads Thailand's steakhouse market with sales of 2 billion baht, followed by Santa Fe at 1.5 billion.

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